Realty developer Embassy Group is planning to invest about Rs 2,000 cr on the development of nearly 6 mln sqft commercial space at Embassy TechVillage in Bengaluru. This will be the next phase of construction of the IT park that has a development area of 12 mln sqft.
Embassy has already completed nearly 4.5 mln sqft development and is expecting to finish 1.5 mln sqft more by the year end, taking the total development to 6 mln sqft. US-based PE major Blackstone Group owns 50% stake in Embassy Office Parks that is developing Embassy TechVillage.
“Between now and 2022, we will be developing the balance 6 mln sqft of the next phase of Embassy TechVillage and be spending in the order of Rs 2,000 cr for this over the next three-five years,” Michael Holland, CEO, Embassy Office Parks, said.
The developer will be using internal accruals and construction finance to support this expenditure. Embassy TechVillage is a more than 100-acre development planned as an integrated project with commercial, retail and hospitality components. It is located in Bengaluru’s IT corridor and is connected to IT hubs such as Whitefield, Electronic City and the city’s CBD.
Embassy Office Parks is in the process of listing India’s first Real Estate Investment Trust (REIT). Currently, Embassy TechVillage houses key corporate occupiers such as Great West Financial, KPMG, Seagate, Sears, Software AG, Sony, Quest, Wells Fargo and Flipkart with a cumulative employee count of 30,000.
Earlier this week, Embassy Group had made a deal with hotel chain Hilton for the management of two hotels to be developed in Embassy Tech-Village. Embassy Group is expected to invest around Rs 600 cr on the development of these hotels. Construction of this new hospitality project is expected to begin this year and the hotels will be operational by end 2021or early 2022.