Embassy Office Parks REIT on Thursday said it has raised Rs 750 crore during September quarter through issue of debentures to refinance debt and fund ongoing projects. Embassy Office Parks REIT is the country's first Real Estate Investment Trust (REIT), which was launched last year to raise nearly Rs 5,000 crore. The REIT is listed on the stock exchange.
In a regulatory filing, the company shared operational update for the second quarter of the financial year.
Over 95 per cent of its occupiers and over 15,500 employees operated from its properties in September 2020, compared to 8,500 employees on an average during Q1 FY2021, the company said.
The construction work continued in its ongoing projects, comprising 2.7 million sq ft of office space.
"Rental collections for 2Q FY2021 from office occupiers remained robust at 98.5 per cent (as of date), in-line with robust office rental collections of 99.9 per cent for 1Q FY2021," Embassy Office Parks REIT said.
Rental increased 11 per cent in the second quarter of FY'2021 across 18 office leases, with YTD (Year-to-Date) rental increases of 12 per cent on 3.7 million sq ft across 40 office leases.
"Successfully raised listed debentures aggregating to Rs 7.5 billion at a competitive 7.25 per cent quarterly coupon, to be utilised towards refinancing existing debt, construction development and for general corporate purposes," the filing said.
Embassy Office Parks REIT said its liquidity position is strong with existing cash and undrawn commitments of Rs 1,220 crore as of September 30, 2020.
Mike Holland, CEO of Embassy REIT, said, "The continued resilience of our business is reflected in our robust rent collections, gradual ramp-up in occupiers working in our parks, and our recent health and safety certifications received from global renowned institutions."
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