Embassy Office Parks REIT: Embassy Becomes 2nd Most Valuable Realty Company As Slew Of REITs Expected To Hit Market Soon

    Date:

    Share post:

    India’s first share sale of a property-collection under one operator, Embassy Office Parks REIT, has become the country’s second-most valuable real estate company on its stock-market debut. Analysts believe that there is scope for immediate further appreciation that will eventually be instrumental in making REITs a favorable with the uber-rich in New York, Singapore or London.

    After gaining as much as 8 percent to Rs 324.50, compared with the offer price of 300, the REIT units ended at Rs 314.10, up 4.7 percent. As on Monday, Embassy REIT was valued at Rs 24,238 crore, bettered in the property space only by DLF which has a  market capitalization of Rs 38,474 crore.

    The Rs 4,750 crore public issue, which opened for subscription during March 18-20, was subscribed 2.57 times at the end of the three-day bidding process.

    “The units are currently trading at a 20 percent discount to the total NAV of Rs 375, based on the current market price of SPV projects,” ET Realty quoted Anil R, analyst, Geojit Financial Services, as saying. “The company has invested in India’s key office markets of Bengaluru, Pune, Mumbai and Noida and these markets have exhibited strong dynamics…(High) absorption and constrained supply have resulted in high rental growth and low vacancy.”

    REIT IPO launch is being deemed as marquee and landmark deal by the experts. Good response from the investors and the encouraging listing of the Embassy REIT will pave the way for similar sales by real estate companies that have substantial portfolios of rent-yielding assets. No wonder, the experts are predicting that a slew of REITs will hit the market in the coming months.

    “The ability to raise resources through the monetization of rent-yielding properties at a relatively attractive cost is a re-rating trigger for not only the REIT issuing real estate companies but also a boost for investor sentiment toward the entire sector,” the publication quoted Gaurav Dua, head of research, Sharekhan.

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    Related Posts

    Latest posts

    Nearly 20 Premium Malls Set to Open by 2026 in Top Indian Cities: Report

    NEW DELHI (AP) — India is poised to see a major expansion in its premium retail infrastructure, with...

    GDA to Introduce Slot System for Property Registrations in Ghaziabad

    The Ghaziabad Development Authority (GDA) will soon launch a slot-based registration system for property buyers in an effort...

    Top Seven Indian Cities See Strong Office Leasing Growth: Vestian

    India’s top commercial real estate markets witnessed robust momentum in 2024, with leasing activity and office rental rates...

    Amaravati Capital City Project Resumes After Five-Year Pause

    Construction has recommenced on the ₹65,000 crore Amaravati capital city project in Andhra Pradesh, marking a significant revival...