Blackstone-backed Embassy Office Parks Reit has raised $501 million through an institutional placement of its units.
The proceeds from this placement would be utilised to fund the Reit’s proposed acquisition of Embassy TechVillage for $1.3 billion, which was announced in November. The transaction is expected to close by the end of December 2020.
“The strong demand for our offering amidst market uncertainties and the ongoing pandemic is a testament to the confidence in Embassy Reit’s inorganic growth strategy of owning quality office assets such as Embassy TechVillage,” said Mike Holland, chief executive officer of Embassy Reit, the first ever Reit in the country.
“This institutional placement of new units diversifies our unit-holder register, enhances the liquidity of our units, and is expected to facilitate the Reit’s potential inclusion into additional global benchmark equity indices,” he added.
The Securities Committee of the Board of Directors of Embassy Office Parks Management Services, manager to Embassy Reit, approved the issuance and allotment of 111,335,400 new units through this institutional Placement in a meeting on Tuesday.
Listed in April 2019, Embassy Reit owns and operates a 33.3 million square feet portfolio. As part of the Embassy Tech Village deal, Embassy Reit will be acquiring 6.1 msf of completed area, 3.1 msf of under-construction area, of which 36 per cent is pre-leased to JPMorgan, and two proposed 518-keys Hilton hotels within the overall ETV campus as part of the deal. It will make Embassy Reit the largest in Asia Pacific in terms of area.