The fully leased property, anchored by a global investment firm, marks one of the REIT’s most significant third-party acquisitions and reinforces its focus on yield-accretive expansion in its strongest market.
Amit Shetty, Chief Executive Officer of Embassy REIT, said, this third-party acquisition, which underscores Embassy REIT’s strategy of driving growth through high-quality, yield-accretive investments in India’s most dynamic office markets. “Bengaluru continues to be India’s office capital. With a 100% leased, long-tenured asset anchored by a leading global investment firm, this acquisition further strengthens our presence in this premier micro-market. As India’s leading office REIT, we remain focused on disciplined expansion that delivers stronger cash flows and enhances value for our unitholders, while continuing to offer occupiers a truly world-class workplace experience,” he said.
The EGL micro-market, one of Bengaluru’s most premium office districts, continues to see sustained tenant demand and premium rental growth, making the acquisition a strategic addition to Embassy REIT’s portfolio.
The enterprise valuation comes in at a discount to the average of two independent assessments, underscoring the attractiveness of the deal. The acquisition is both DPU- and NOI-accretive, reinforcing Embassy REIT’s position as one of the world’s leading office REITs.
“The asset is expected to deliver an NOI yield of around 7.9%, higher than the REIT’s Q2 FY26 trading cap rate of 7.4%. Fully leased to a global investment firm, the property offers strong income visibility backed by a long-term tenancy,” the company said.
The transaction is subject to customary closing conditions. PwC conducted financial and tax due diligence, Trilegal undertook title diligence, and S&R Associates acted as legal counsel to Embassy REIT.
The company is actively evaluating multiple acquisition opportunities from both third parties and Embassy Group. The deal comes amid a broader expansion cycle for Embassy REIT as leasing remained healthy at 1.5 million sq ft for the quarter, with portfolio occupancy stable at 93% by value.
Earlier this year, the REIT completed India’s first-ever 10-year NCD issuance by a REIT, raising ₹2,000 crores from marquee institutional investors. Further, raised ₹400 crore via commercial paper at 6.44% p.a., underscoring the REIT’s strong credit fundamentals.
Based on independent valuation as of September ‘25, the REIT’s Gross Asset Value increased by 8% YoY to ₹63, 980 crores, and Net Asset Value by 7% to ₹445.91 per unit
With a 50.8 msf portfolio across India’s top office markets, Embassy REIT is also pursuing a development pipeline of 7.2 million sq ft across Bengaluru and Chennai, with 42% of which is already pre-leased.
