IBREL and Embassy Group Sign Definitive Merger Documentation
NAM Estates Pvt Ltd (‘NAM’) and Embassy One Commercial Property Developments Private Limited (‘NAM Opco’) (NAM and NAM Opco being subsidiaries of the Embassy Group), have announced that they have entered into definitive merger documentation to amalgamate ongoing, completed & planned residential and commercial projects of NAM and NAM Opco (‘Embassy Assets’). Mr. Jitendra Virwani along with other promoter entities of NAM (Embassy Promoters) will become the new promoters of IBREL upon completion of merger and Mr. Sameer Gehlaut along with existing IBREL promoter group entities shall initiate the process of reclassification as required. The merged entity will have a balanced mix of commercial and residential assets which should provide a natural hedge against cyclicality and shall benefit from the new promoter, Mr. Jitendra Virwani, chairman of the Embassy Group ?Merger will create one of the leading market players among listed companies in the real estate sector in terms of surplus from launched projects, land bank ownership and residential stock, planned area development in India; 30 projects spread across major Tier I and a few Tier II cities of India resulting in launched, planned development area increasing to 80.8 million square feet, a 3x growth to pre-merger planned development area Combined IBREL to be renamed Embassy Developments Ltd1 and to be co-headquartered in Mumbai and Bengaluru IBREL existing shares to be valued at Rs 92.50 per share; NAM shareholders will get 6.619 shares of IBREL for every 10 shares of NAM (as explained below) Certain entities controlled by The Blackstone Group Inc. (collectively, ‘BREP’) have submitted non-binding LOI for participation in the proposed merger Combined listed entity shall be owned ~44.9% by Embassy Group, 26.2% by the existing public & institutional shareholders, 9.8% by existing IBREL Promoter Group and ~19.1% by BREP & other Embassy institutional investors Residential business to have surplus from launched and planned residential projects exceeding Rs 18,500 Cr; Rs. 201 Cr net investment to realize Rs. 10,667 Cr of surplus from launched residential assets Near completion inventory to generate a net surplus of Rs. 6,288 Cr Commercial square feet under development will increase substantially Additionally, there exists a land bank of 3353 acres, including 1424 acres in a Nasik SEZ which has an opportunity to benefit from Government initiatives to position India as preferred manufacturing location Platform to take advantage of recent market dislocations and accelerate growth through strong partnerships with investors and financial institutions
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