Embassy Group, CDPQ Arm In Talks To Set Up Investment Platform For Office Projects

Bengaluru-based Embassy Group is in talks with CDPQ’s Ivanhoe Cambridge to set up an investment platform for developing office projects, sources said on Thursday.

The size of the platform is under discussion, the sources said, adding that Ivanhoe Cambridge will have a majority stake in the platform.

An Embassy Group spokesperson declined comment.

Embassy Group, led by Jitu Virwani, dabbles in commercial real estate in India. Along with private equity firm Blackstone Group LLC, it launched India’s first real estate investment trust last year to raise Rs 4,750 crore through a public issue.

Embassy Group owns WeWork India, which is into co-working and flexible workspace domain. It also has entered the co-living business. Earlier this week, it announced merger of its housing and commercial projects with Indiabulls Real Estate Ltd.

Sources had earlier said that Embasy Group was in talks with Indospace and ESR to monetise its warehousing and industrial parks business at an enterprise value of Rs 1,700-2,000 crore.

The Bengaluru-based firm had in 2015 formed a joint venture with private equity firm Warburg Pincus to build industrial parks. Property consultant Anarock is helping Embassy Group in this proposed warehousing deal. Embassy Industrial Parks, the joint venture, is developing warehousing projects at Chakan near Pune, Sriperumbudur and Hosur in Tamil Nadu, Farrukhnagar and Bilaspur in the Delhi-National Capital Region, and Kothur in Hyderabad.

Also Read: Embassy Group Opts For Merger Route To List On The Exchanges

The total portfolio of the joiint venture is 15-16 million sq. ft., of which 3-4 million sq. ft. is operational. Warburg Pincus has a 70% stake while Embassy Group holds 30%.

On Thursday, Embassy Office Parks REIT shares fell 0.22% to Rs 367.54 apiece on the BSE while the benchmark Sensex shed 1.02% to end the day at 38,220.39 points.