Bain Capital sells 5.64% stake in Embassy REIT for ₹2,325 crore; office demand, acquisitions in focus

Global investment firm Bain Capital has sold a 5.64% stake in Embassy Office Parks REIT for ₹2,325 crore through open-market transactions, even as the real estate investment trust plans to acquire about 10-12 million square feet of office space over the next three to four years.

Bain Capital, through its affiliate APAC Company XXIII Ltd, offloaded 5.35 crore units of the Bengaluru-based REIT at ₹435.01-₹435.05 apiece, according to bulk deal data on the NSE. The buyers could not be ascertained from the exchange data. Embassy REIT units fell nearly 3% on Monday to close at ₹440.26 on the NSE.

Embassy REIT eyes 12 million sq ft expansion

The stake sale comes as Embassy REIT looks to capitalise on sustained demand for premium office space. Chief executive Amit Shetty recently said the REIT is evaluating acquisitions totalling 10-12 million sq ft across the country's top five-six cities, including assets from third parties as well as its sponsor group.

The company expects to conclude some of these transactions during the current fiscal year. Shetty said the REIT has sufficient debt headroom to fund acquisitions once deals are finalised.

Embassy REIT currently owns and operates more than 52 million sq ft of office assets across Bengaluru, Mumbai, Pune, Delhi-NCR and Chennai. The portfolio also includes five operational business hotels, two hotels under development and a 100 MW solar park supplying renewable power to tenants.

₹3,500 crore construction pipeline

Alongside acquisitions, Embassy REIT is developing 6.2 million sq ft of office space at an estimated cost of ₹3,500 crore. The expansion comes amid continued leasing demand from foreign companies setting up Global Capability Centres (GCCs) in major Indian cities.

Shetty said demand for office space remains resilient despite global uncertainties, while the coworking segment is also benefiting from growing demand for managed and flexible workspaces.

The REIT's operating performance has strengthened alongside this demand. For the quarter ended June 2026, its net operating income rose 17% year-on-year to ₹1,020 crore, while revenue from operations increased 17% to ₹1,241 crore.

Embassy REIT declared a distribution of ₹598 crore, or ₹6.31 per unit, to unitholders for the April-June quarter of FY27. The REIT is sponsored by Embassy Group, which also has listed entities Embassy Developments and WeWork India. (With inputs from PTI)