FTSE Raises Investability Weight In Embassy REIT After Blackstone Stake Sale
The weight of Embassy REIT in the FTSE indexes will remain unchanged.
Global index provider FTSE has raised the investability weighting of Embassy Office Parks REIT to 87.8% from 64% in its All-World Index. This comes after Blackstone sold its remaining 23.5% stake in the company via a mega block deal on Wednesday.
The weight of Embassy Office Parks REIT in the index will remain unchanged with an issue total of 947,893,743 shares, FTSE said in a release on Thursday. Embassy will also remain in the FTSE Global Mid Cap and FTSE Emerging indexes.
The investability weight increase will be effective from the start of trading on Dec. 27, 2023.
As many as 22.36 crore units of Embassy Office Parks changed hands at Rs 316.10 apiece for an aggregate of $850 million (Rs 7,100 crore) on Wednesday as Blackstone fully exited the company via a large trade.
ICICI Mutual Fund, HDFC Mutual Fund, and Fidelity were among the existing investors that increased their stake in the REIT through the deal, whereas SBI Mutual Fund is the new investor that has picked up a stake in the company.
Blackstone, a sponsor of the REIT, had made a partial exit from Embassy REIT in Sept. 2022, when it sold an 8% stake through open market block deals. Embassy's REIT, which made its market debut in April 2019, was the first listed real estate investment trust in India.
Shares of Embassy Office Parks REIT closed 0.6% lower at Rs 329 apiece on the BSE on Thursday as compared with a 0.5% rise on the benchmark Sensex. The stock is down more than 2% year-to-date.
