Embassy Developments proposes Rs 3,700 cr commercial project divestment to Embassy REIT in Bengaluru
May 30, 2025
Embassy Developments Limited (EDL) proposes a premium commercial project in Whitefield, Bengaluru, to Embassy Office Parks REIT for potential acquisition, projecting a ₹3,200–₹3,700 crore GDV. EDL, post-merger, reported a strong FY25 turnaround with significant revenue and profit growth. The company targets ₹22,000 crore GDV for FY26, focusing on key high-growth cities.
Embassy Developments Limited (EDL), the newly merged flagship real estate platform of the Embassy Group, has proposed a premium commercial development in Whitefield, Bengaluru, to Embassy Office Parks REIT as a potential acquisition opportunity. The proposed project, with a potential leasable area of approximately 3.3 million square feet, is expected to generate a Gross Development Value (GDV) of ₹3,200–₹3,700 crore upon completion.
The deal, still at a preliminary stage, is subject to definitive agreements and regulatory approvals from third parties, shareholders, and unitholders. Embassy REIT has not yet entered into any formal arrangement, the company clarified.
The announcement comes alongside EDL’s first consolidated financial results
post its successful merger with NAM Estates and Indiabulls Real Estate, a
transaction completed earlier this year. With a 42.96% promoter stake held by
the Embassy Group, EDL has now emerged as a formidable real estate force with a
pan-India development pipeline.
The company reported a strong
turnaround in FY2025, posting a net profit of ₹203 crore compared to a
loss of ₹485 crore in the previous year. Revenue more than doubled
year-on-year to ₹2,547 crore, while EBITDA surged to ₹531 crore
from ₹36 crore in FY24. Quarterly revenue in Q4FY25 alone stood at
₹1,183 crore — nearly four times the previous quarter.
Backed by a robust land bank and strong balance sheet, EDL has set an ambitious
GDV target of ₹22,000 crore for FY2026, including ₹18,600 crore
from residential and ₹3,500 crore from commercial projects. The company
also aims to achieve ₹5,000 crore in residential pre-sales — a 150%
increase from FY25.
Aditya Virwani, Managing Director, said, “This proposed opportunity to Embassy REIT reflects our strategic focus on value creation and asset monetisation. Our goal is to leverage our commercial and residential capabilities to build a pan-India platform of scale.”
During FY2025, EDL sold 2.2
million square feet of residential space and collected ₹1,900 crore in
cash inflows. It launched three new residential projects with a topline of
₹1,700 crore, of which 71% has already been sold. The company also acquired
six new projects with a GDV potential of ₹9,200 crore and monetised 19
acres in Mumbai Metropolitan Region (MMR).
Led by Chairman Jitendra Virwani — known for creating India’s first listed REIT — the company is sharpening its focus on high-growth cities like Bengaluru, MMR, National Capital Region (NCR), and Chennai. As of March 2025, EDL’s gross debt stood at ₹2,756 crore, with a conservative debt-to-equity ratio of 0.3x and cash reserves of ₹483 crore.
Embassy Developments now controls a GDV pipeline of ₹48,000 crore across
ongoing and upcoming projects, further strengthened by fully paid land banks
ready for development.