Embassy REIT raises ₹7.5bn through private placement and other APAC REIT news

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Embassy Office Parks REIT has raised ₹7.5bn or ₹750 crores (~US$102m) through a private placement of non-convertible debentures due to mature in September 2023. 

Embassy, India’s first listed REIT, issued ₹7.5bn of Embassy REIT Series II Tranche A Non-Convertible Debentures 2020 at a 7.25% quarterly coupon.

The non-convertible debentures are rupee-denominated, rated, secured, redeemable, transferable, and will be listed on the wholesale debt market of the BSE.

Listed in April 2019, the REIT owns and operates a 33.3m sq.ft. portfolio of seven infrastructure-like office parks and four city‑centre office buildings across Bengaluru, Mumbai, Pune, and the National Capital Region. 

“Our ability to raise financing at competitive rates despite uneven and volatile bond markets demonstrates the strength of our balance sheet and resilience of our commercial office business supported by the strong covenants of our largely multinational occupiers,” said Embassy REIT CEO Michael Holland.

Shares in Embassy closed 0.16% lower at INR 362.05 on Wednesday. 

Index Change Value at close
S&P/ASX 200 A-REIT -1.73% 1,280.20
S&P/ASX 200 -2.15% 5,878.60
FTSE ST REITS -0.19% 845.72
STI -0.22% 2,499.33
Tokyo Stock Exchange REIT -0.36% 1,707.53
Nikkei 225 -1.04% 23,032.54
Hang Seng REIT +0.35% 5,634.85
Hang Seng -0.63% 24,468.93

Singapore: S&P removes Frasers Centrepoint Trust ratings from CreditWatch

Global ratings agency S&P has affirmed Fraser Centrepoint Trust’s ‘BBB’ long-term issuer credit ratings and removed its ratings from CreditWatch as a result of the REIT’s recent AsiaRetail fund deal. 

“We believe FCT’s proposed acquisition of the remainder of AsiaRetail Fund will significantly improve the scale and competitive position of its retail asset portfolio,” the ratings agency said. 

FCT announced plans earlier this month to buy the remaining 63.1% stake in the AsiaRetail fund for S$1.06bn in a bid to become one of Singapore’s largest suburban mall owners. 

FCT’s ratings were placed in CreditWatch with negative implications in April this year.

“In our view, these factors can offset FCT’s tolerance for higher leverage. To achieve this, we expect satisfactory completion of FCT’s proposed corporate actions, including the acquisition, equity fund raising, and an asset disposal,” said S&P analysts. 

FCT shares finished trading 1.48% lower at S$2.67 on Wednesday.

Australia: Charter Hall Social Infrastructure REIT appoints Miriam Patterson as executive director 

ASX-listed Charter Hall Social Infrastructure REIT has appointed Miriam Patterson as an executive director of the REIT’s manager. 

Patterson is the fund manager for Charter Hall’s direct business, with more than A$5bn of funds under management. 

Before joining Charter Hall, Patterson was the head of real estate at Telstra Super, where she oversaw a A$4bn real estate and infrastructure portfolio.

The REIT owns more than 370 childcare and other social infrastructure properties across Australia and New Zealand, with about A$1.3bn in total assets. 

The REIT’s shares closed 2.21% lower at A$2.66 on Wednesday.