Embassy Office Parks REIT to invest Rs 850 cr to develop office space in Bengaluru

Embassy REIT will invest Rs 850 crore to develop nearly two million square feet office buildings in Bengaluru as the company remains bullish on demand for premium workspace, a senior company official said.

In an interview, Embassy REIT Deputy CEO and Chief Operating Officer Vikaash Khdloya said, "We have started a new growth cycle by starting new development of 1.9 million square feet area in Embassy Tech Village in Bengaluru."

"As demand has started to rebound, we are now focusing on growth. We will develop 1.9 million square feet in one shot across four buildings," he told PTI.

Currently, Embassy REIT is developing a total of 4.6 million square feet area, including the new 1.9 million square feet office buildings. Asked about the investment, Khdloya said the total construction cost is estimated at around Rs 850 crore for the new 1.9 million square feet area.

In 2020 also, Embassy REIT acquired an IT park 'Embassy TechVillage' at a total enterprise value of Rs 9,782.4 crore ( USD 1.3 billion).

Khdloya said the demand for Grade-A office is picking up and the company leased around 4,30,000 square feet area during the December 2021 quarter, of which 3,50,000 square feet is new leasing and rest renewals. He said the demand for quality office space remains strong, especially from the IT/ITeS sector, which has seen a lot of hiring even during this pandemic.