Embassy Office Parks REIT is sharpening its acquisition strategy with a 10–12 million sq ft pipeline across key markets, even as it reported 13 per cent revenue growth to ₹4,582 crore, 15 per cent rise in net operating income to ₹3,760 crore, and 10 per cent increase in distributions to ₹2,396 crore in FY26.
“We’re looking at a 10–12 msf acquisition pipeline over the next 4–5 years,” CEO Amit Shetty said, adding that the REIT is evaluating a mix of sponsor and third-party assets across Bengaluru, Chennai, Mumbai, Pune, and Hyderabad.
The push comes as Embassy REIT looks to scale beyond its core portfolio, which currently stands at 43.5 million sq ft of operational space, expanding to 52.5 million sq ft, including under-construction assets.
The acquisition strategy is being driven by strong office market tailwinds. “Last year, we saw about 83 million sq ft of leasing, while supply was about 59 million sq ft. Vacancy compressed and rentals elevated, and that trend continues,” Shetty said.
In the first quarter of the calendar year, absorption stood at 21 million sq ft against 8 million sq ft of supply, further tightening vacancy levels to 14–15 per cent nationally, he added. Embassy REIT itself contributed about 2 million sq ft of new supply, accounting for roughly a quarter of market additions during the period.
The REIT, which also raised ₹11,200 crore during the year, including ₹3,400 crore via long-tenor NCDs, said it is actively evaluating a mix of sponsor and third-party assets across Bengaluru, Chennai, Mumbai, Pune, and Hyderabad.
The REIT delivered 3.3 million sq ft of completed developments last year, supporting occupancy gains and rental growth across its portfolio.
Non-core assets
Alongside acquisitions, Embassy REIT is also pursuing capital recycling, including divestment of non-core assets and potential monetisation of hospitality assets if valuations remain attractive.
Shetty said the REIT would balance growth with balance sheet discipline, targeting 20–25 per cent leverage levels over the medium term, even as it taps debt markets opportunistically.
Published on April 29, 2026