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Private Sector | Multi State - India | PID: 193034
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The Embassy Group is scouting various options to monetise its warehousing and industrial parks business at an enterprise value of Rs 1,700- Rs 2,000 crore
Bengaluru-based Embassy Group, which had in 2015 formed a joint venture with private equity firm Warburg Pincus to build industrial parks, is in talks with few potential buyers to monetise completed and under-construction assets of the JV
Embassy Industrial Parks, the joint venture firm, is developing warehousing projects at Chakan in Pune, Sriperumbudur and Hosur in Tamil Nadu; Farrukhnagar and Bilaspur in Delhi NCR; and Kothur in Hyderabad
The total portfolio of the JV firm is around 15-16 million sq ft, of which three-four million sq ft is operational. Warburg Pincus has 70 percent stake while the Embassy Group has 30 percent shareholding in the JV
The Embassy Group is evaluating various options to monetise Embassy Industrial Parks. It could be the outright sale of the company or some new fund might come in as a new investo
The enterprise value of the deal could be between Rs 1,700 crore and Rs 2,000 crore. The debt of the JV is around Rs 700 crore. Property consultant ANAROCK has been roped in to find a buyer for Embassy Industrial Parks
The Group has lot of land bank to create similar large portfolio of warehousing and industrial parks
Indian warehousing sector is growing rapidly on strong demand from third party logistics (3PL) and e-commerce sectors. Many real estate players have entered this space and are developing Grade A logistics parks across the country
In July 2020, the Embassy Group had proposed to merge around 11 real estate projects comprising nearly 62 million sq ft area with Indiabulls Real Estate (IBREL) and take control of the merged entity
The company already has around 14 percent stake in Mumbai-based IBREL, which is part of the Indiabulls group. After this proposed merger plan gets concluded, the Embassy Group will have a controlling stake and become promoter of the merged entity
The Group also owns WeWork India, which is into coworking and flexible workspace domain. It has also entered into coliving business in a big way
| Updated on: 12 - Aug - 2020
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