Embassy REIT has completed the sale of approximately 376,000 square feet across two strata-owned office blocks at Embassy Manyata Business Park in Bengaluru for Rs 5.3 billion. The assets were acquired by EAAA Alternatives’ first commercial real estate fund, Rental Yield Plus, marking a significant transaction in India’s institutional office market. An official noted that the divestment aligns with the REIT’s capital recycling strategy and supports portfolio optimisation.
The transaction reflects the growing interest of alternative investment funds in India’s commercial real estate, particularly in well-located, sustainable office parks. EAAA Alternatives, a domestic asset manager with over Rs 650 billion under management, has been actively investing in infrastructure, energy, and commercial real estate, alongside providing private credit solutions to large corporates. Its commercial real estate platform alone manages assets exceeding Rs 220 billion. Embassy REIT’s expansive portfolio spans 50.08 million square feet across 10 infrastructure-style office parks and four city-centre buildings in Bengaluru, Mumbai, Pune, the National Capital Region, and Chennai. Since its listing in April 2019, the REIT has distributed over Rs 132 billion to unitholders and grown its investor base nearly 29-fold to over 110,000 stakeholders. A senior analyst highlighted that such strategic sales help maintain financial flexibility and strengthen long-term investor returns.
Embassy Manyata Business Park itself covers 122 acres and offers around 16 million square feet of leasable space. The campus houses more than 60 tenants and accommodates over 100,000 employees, underlining its status as a major employment and commercial hub in Bengaluru. Industry experts noted that transactions of this scale signal continued investor confidence in prime institutional-grade office assets and the resilience of the city’s commercial property market. The divestment supports Embassy REIT’s broader sustainability and efficiency goals. By selectively recycling capital from mature assets, the REIT can reinvest in newer, environmentally efficient properties, aligning with the growing focus on zero-carbon, sustainable, and inclusive urban workplaces. Analysts suggest that such strategies reinforce the link between financial returns and long-term environmental and social impact in India’s urban centres.
Overall, the sale underscores the evolving dynamics of Bengaluru’s office market, where institutional-grade assets are increasingly attracting domestic and global investors, and REITs are leveraging capital recycling to enhance portfolio efficiency while supporting sustainable urban development.
Embassy REIT Sells 376000 Sq Ft Offices At Manyata Bengaluru For 5300 Crore
