Embassy Office Parks REIT reports rental collections of 97% in Q1 FY21 – ET RealEstate

BENGALURU: Embassy Office Parks, India’s first listed real estate investment trust (REIT) and the largest in Asia by area, said on Monday its rental collections for the first quarter (April to June) from office occupiers remained robust at 97 per cent.

The office rental collections were 98 per cent in April and May, and 95 per cent in June, it said in an operational update for Q1 FY21. There were rental increases of 14 per cent on 1.8 million square feet across 22 office leases.

The company said its priority remains delivering a safe workplace and business ecosystem for occupiers and their employees. A daily average of 13,000 employees operated in June from its properties across India.

The properties remained open in full compliance with all government regulations to support the business continuity of occupiers. Over 90 per cent of 160-plus corporate occupiers continued to operate their core business functions in June.

Embassy REIT‘s robust rental collections for the quarter ended June 30 speaks to the trust we have built with our occupiers over many years, their appreciation of our Covid-19 operating response, and their dependence on the highest safety and quality standards which our total business ecosystem delivers,” said Chief Executive Officer Mike Holland.

The company said it has a strong liquidity position with existing cash and undrawn committed facilities totalling Rs 1,260 crore as of June 30.

Embassy Office Parks operates 33.3 million square feet portfolio of seven infrastructure-like office parks and four city-centre office buildings in best performing office markets of Bengaluru, Mumbai, Pune, and the National Capital Region (NCR).

Its portfolio also comprises strategic amenities including two operational business hotels (including the Four Seasons hotel at Embassy One), two under-construction hotels and a 100-megawatt solar park supplying renewable energy to park occupiers.



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MetLife leases 2.95 lakh sq ft office space in Noida – ET RealEstate

BENGALURU: Global insurance provider, MetLife has leased 2,90, 000 sqft office space in Embassy Oxygen, Noida to expand its business.

The new facility that is expected to go live soon and can seat 2750. According to the market sources, the Metlife will be paying an average rental of Rs 60 per sft in Embassy Oxygen.

“The new facility will work as a global capacity centre for the insurance giant and will support it’s US operations, ” said people aware of the deal.

MetLife did not respond to an email sent by ET.

Embassy Oxygen is a 3.3 mn sft office building, part of the Embassy REIT. Other tenants in the property includes Optum Global, NTT Data, GlobalLogic EXL, Sapient Consulting.

Vikaash Khdloya, Deputy CEO and COO, said that there has been a healthy demand for an office. “We are working on a number of new leasing enquiries and RFPs though these are likely to take couple of quarters to move to conclusion. While today’s immediate occupier focus is business continuity and employee safety, we see return of robust office demand and healthy rental growth over the coming quarters given de-densification and ever increasing need for technology supported solutions.”

However, he did not confirm.

During H1 2020, gross absorption in Delhi-NCR fell 27% YOY to 3.2 million sq feet. Majority of the leasing activity was led by NOIDA that accounted for 56% of the total leasing in the region said Colliers International in it’s latest report.

“We foresee the markets to pick up in H2, 2020 as most transactions for Q2 have been pushed to the second half and majority of occupiers have now started taking decisions about their real estate portfolios”, said Sanjay Chatrath, Managing Director, North India at Colliers International India.



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