The board of India-based Embassy Office Parks REIT's manager agreed to acquire 600,000 square feet of leasable office area in Bengaluru, India, from Embassy Property Developments Pvt. Ltd., at a 9.25% initial yield on development completion in the fourth quarter of 2023.
The debt funded purchase estimated at 7.4 billion Indian rupees will be made in tranches linked to milestones, with the final acquisition cost dependent upon building completion and lease-up based on actual achieved rents.
The M3 Block B property lies within the overall Embassy Manyata campus, which is approximately 99% occupied.
As of Dec. 31, 2019, US$1 was equivalent to 71.17 Indian rupees.