The listing of the first Indian REIT might be postponed, Bloomberg News reported, citing people with knowledge of the matter.
Blackstone Group LP-backed Embassy Group's supposed disputes with investors in two of its properties could derail the listing of the approximately US$600 million REIT, which will contain five to six assets.
The investors, Kelachandra Group and Manyata Group, have refused to add the Embassy GolfLinks and Embassy Manyata Business Park office properties in Bengaluru to the portfolio, the sources said. A resolution for the dispute would need to happen before the listing pushes through.
Embassy Group owns the two assets through its Embassy Office Parks joint venture with Blackstone. The Embassy GolfLinks and Embassy Manyata Business Park are said to account for a bulk of the proposed REIT portfolio's rental income, according to the Jan. 25 report.
The Indian company has already submitted an application to the Securities and Exchange Board of India for the IPO.