Nokia renews lease for 5.11 lakh square feet at Manyata Embassy in Bengaluru, Real Estate News, ET RealEstate
NEW DELHI: Embassy Office Parks REIT (Embassy REIT) has finalized the renewal of its lease at Embassy Manyata, Bengaluru, with Nokia Solutions and Networks India (Nokia India), the Indian subsidiary of the Finnish company Nokia, the company announced in a Press release.
Embassy Manyata has an operational area of ​​approximately 12 million square feet.
The company recently raised Rs 4,600 crore in debt bearing a coupon at an interest rate of 6.5%. The proceeds of this increase in debt are to be used by Embassy REIT to repay its existing zero coupon bond of Rs 4,530 crore.
The Debenture Committee approved the allotment of Rs 3,100 crore Series V denominated in rupees, quoted, rated, guaranteed, redeemable and transferable by private placement at an average fixed coupon of 6.5% payable quarterly. Of this total, Rs 1,100 crore is 7% for five-year NTMs and Rs 2,000 crore is 6.3% for three-year NTMs.
In addition, Embassy REIT has secured an SPV-level term loan facility from a bank for Rs 1,500 crore at a floating coupon of 6.4%.
These two products, totaling Rs 4,600 crore, will be used for the early refinancing of Zero Coupon Bonds (NCDs Series I) which carried an average coupon of 9.4% on November 2, 2021. Embassy REIT will be able to guarantee about 300 basis points of interest. annual savings through this refinancing.
After this refinancing, Embassy REIT’s pro forma debt would be Rs 11,532 crore at an interest rate of 6.8% with a maturity of 3.7 years.
Embassy REIT owns and operates a 42.4 million square foot portfolio of eight infrastructure-like office parks and four downtown office buildings in Bengaluru, Mumbai, Pune and the National Capital Region (RCN ).
