BANGALORE: Embassy Property Developments, a prominent real estate developer based in Bangalore, is actively seeking to raise Rs 800 crore in debt for the development of an IT park within the city. The developer is currently engaged in discussions with several banks and financial institutions, notably including HDFC and Indiabulls, to secure the necessary funds.
Initially, Embassy had partnered with Blackstone, a leading private equity firm from the United States, to jointly acquire the expansive 2.1 million square feet Vrindavan Tech Park. However, Blackstone has stated that its involvement in the project will hinge on Embassy obtaining a full 100 percent ownership stake in the park.
When approached for comments on this matter, an HDFC representative dismissed the existence of the project, while officials at Indiabulls expressed a lack of awareness regarding any discussions with the developer.
The Southern developer aims to source a total of Rs 1,951 crore for the project, with Rs 800 crore planned to be raised through debt. The remainder will be funded via equity. Sources reveal that a public sector bank currently holds a Rs 315 crore debt on the project. Citi Group, which is aiding in the development of the tech park, may also contribute a small amount of funding.
Upon acquisition of the tech park, the joint venture will not only secure the 2.1 million square feet of space but will also gain access to an additional 75 acres of undeveloped land located within the park.
To facilitate the funding process, the developer is also contemplating selling off some of the available space to Blackstone. This follows Blackstone's prior purchase of stakes from the Embassy group last October.