Bengaluru, Dec 22 (IANS): Embassy Office Parks REIT on Tuesday announced it has successfully completed a unit capital raise of $501 million through an institutional placement of units.

The Securities Committee of the Board of Directors of Embassy Office Parks Management Services Private Limited, Manager to Embassy REIT, approved the issuance and allotment of over 11.13 crore new units through this institutional placement in a meeting held on Tuesday, the Embassy REIT said in a regulatory filing.

Trading of these units is expected to commence on or around December 24, 2020 on NSE and BSE.

"The institutional placement launched on December 15, 2020 and witnessed strong demand from both existing as well as new institutional investors, including global and domestic investors, pension funds, insurers, and alternative asset managers," it said.

Mike Holland, Chief Executive Officer of Embassy REIT said: "The strong demand for our offering amidst market uncertainties and the ongoing pandemic is a testament to the confidence in Embassy REIT's inorganic growth strategy of owning quality office assets such as Embassy TechVillage."

The placement issue price of Rs 331 per unit represents a discount of 4.99 per cent to the applicable floor price of Rs 348.38 per unit calculated in accordance with applicable SEBI regulations, said the filing.

Embassy REIT proposes to use the proceeds from this placement to fund its proposed acquisition of Embassy TechVillage that it announced earlier on November 17, 2020, and for general purposes.

Embassy REIT is acquiring ETV from the Embassy Sponsor, members of the Blackstone group and other selling shareholders, for a total enterprise valuation of $1.3 billion, subject to closing adjustments. The transaction is expected to close by end of December 2020.