In a significant transaction underscoring the strength of India's commercial real estate market, Embassy Office Parks REIT has acquired an office building in Bengaluru's prime Embassy Golf Links business park for a sum of ₹852 crore. The seller is the investment firm Xander Group Inc., according to sources familiar with the development.
Details of the Strategic Acquisition
The property, known as Pinehurst, spans approximately 0.3 million square feet and is fully leased to the financial services giant, Fidelity India. Xander's India office platform had originally purchased this asset from the Sanjay Ghodawat Group back in 2018 for ₹350 crore, as part of its strategy to expand its commercial office holdings in the country. The current deal marks a profitable exit for Xander from this investment.
Embassy REIT confirmed on Wednesday that it had entered into definitive agreements to acquire the property, aligning with its growth strategy, though it did not publicly name the seller or the tenant. The transaction was advised by property consultancy JLL India.
Strengthening Foothold in a Premier Micro-Market
Amit Shetty, Chief Executive of Embassy REIT, highlighted the strategic importance of the acquisition. He stated that Bengaluru remains India's undisputed office capital, and the Embassy Golf Links park hosts some of the world's most influential technology firms and Global Capability Centres (GCCs). Shetty emphasized that adding a 100%-leased, long-tenured asset anchored by a leading global investment firm significantly strengthens their presence in this high-demand micro-market.
Embassy REIT, which is India’s first publicly listed REIT and the largest office REIT in Asia, now owns and operates a massive portfolio of 50.8 million square feet. This includes 14 office parks across key cities like Bengaluru, Mumbai, Pune, the National Capital Region, and Chennai.
The Expanding Universe of Indian REITs
This deal is classified as a third-party acquisition, a common method for Real Estate Investment Trusts (REITs) to grow their portfolios alongside right-of-first-offer (Rofo) assets from sponsors. REITs function by pooling income-generating real estate, allowing investors to earn a share of the rental income without directly buying properties. Sebi regulations mandate that at least 80% of a REIT's assets must be completed and income-producing.
The Indian REIT landscape has witnessed explosive growth. From just one listed REIT in 2019, the country now boasts five, including:
- Embassy Office Parks REIT
- Mindspace Business Parks REIT
- Brookfield India Real Estate Trust (BIRET)
- Knowledge Realty Trust (KRT)
- Nexus Select Trust (the only retail-focused REIT)
Collectively, these five REITs command a staggering 174 million sq ft of leasable office and retail space. Their total market capitalization has soared from $3.1 billion in FY20 to $19 billion as of 30 September 2025, reflecting robust investor confidence.
A Wave of Portfolio Expansion
The acquisition spree is not limited to Embassy REIT. Recently, Mindspace REIT acquired two office assets in Mumbai and one in Pune from its sponsor, K Raheja Corp, for ₹2,916 crore. Similarly, in November, Brookfield REIT announced plans to acquire Ecoworld, a 7.7 million sq ft Grade A office park in Bengaluru, for ₹13,125 crore from Brookfield Properties' portfolio.
All major office REITs reported growth in net operating income, occupancy levels, and investor distributions in the first half of FY26. This positive trend, driven largely by demand from GCCs and domestic companies, is expected to continue through the second half of the fiscal year, solidifying REITs as a cornerstone of India's institutional real estate market.
