Embassy Property Development is merging some of its residential and commercial properties with Indiabulls Real Estate to set up a new entity, the latter said on Friday.
The companies did not share details of the properties they are merging. Under the proposed merger, Indiabulls will issue equity shares of Rs 2 each to the shareholders of Embassy, in accordance with the swap ratio approved by the boards of both the companies, Indiabulls said.
The merged platform will be controlled by Embassy Chairman Jitu Virwani. Sameer Gehlaut, the current promoter of Indiabulls will become a passive shareholder in the new company, sources in the know said.
“The merged platform will become the development arm for the listed REIT (Embassy Office Parks). The REIT will benefit by getting more developed assets, thereby increasing the yield of the REIT,” sources said. Embassy will raise Rs 1,420 crore from Blackstone and other investors.
“The equity investment will bring significant cash to the merged entity,” It added.