Indiabulls Real Estate & Embassy Amalgamation Closer to Completion
<span style="font-weight: 400;">Indiabulls Real Estate Ltd</span> <span style="font-weight: 400;">announced that they are</span> <span style="font-weight: 400;">one step closer to building one of India’s leading real estate development platforms. The Proposed Scheme of Amalgamation between IBREL, NA
Published -
Feb 27, 2021 2:56 AM
Indiabulls Real Estate Ltd announced that they are one step closer to building one of India’s leading real estate development platforms. The Proposed Scheme of Amalgamation between IBREL, NAM Estates Pvt Ltd (‘NAM’), Embassy One Commercial Property Developments Private Limited (‘EOCPDPL’) (NAM and EOCPDPL being subsidiaries of the Embassy Group) which was filed with CCI, Bombay Stock Exchange (‘BSE’), National Stock Exchange (‘NSE’) and Securities Exchange Board of India (‘SEBI’) through the stock exchanges, has received all relevant regulatory approvals, and with all necessary corporate approvals on track, the merger process is now progressing to completion in a timely manner. Embassy Group is one of the largest developers in Bengaluru and holds 14% of IBREL. The Embassy Group entered into definitive agreement with IBREL to merge its certain residential and commercial projects with IBREL through a cash-less scheme of amalgamation whereby Embassy Group shall become the promoters of the merged entity upon effectiveness of the merger. Further, as part of the merger process, certain entities controlled by BREP would also contribute certain identified residential projects to the merger through a share swap arrangement with Embassy Group entities, subject to the satisfaction of certain conditions. The resulting combined entity, Embassy Developments Limited, will hold both Embassy Group’s and IBREL’s ongoing, completed but unsold and planned projects with 80.8 million sq ft of development potential, thus becoming one of the largest property development platforms in the country. The combined entity shall benefit from a complementary pan-India presence across key markets including a strong presence in the commercial and residential market of Bengaluru, Mumbai and NCR. The merger shall provide diversification to IBREL shareholders through a balanced mix of residential and commercial development with visibility on near term liquidity through sold receivables in excess of Rs. 4,220 crores for the combined entity. Individually, both IBREL and Embassy Group have shown exceptional resilience and turnaround from the pandemic related market dislocations. IBREL recorded one of its highest quarterly sales figures in the past quarter at Rs. 9,905 million and dominated the Mumbai premium luxury market with its sales of iconic Indiabulls Blu Estate & Club residential towers in Worli. Embassy Group projects have shown a similar significant sale uptake in the same period within the Bangalore market.
Tags : News/Views Real Estate Indiabulls Real Estate & Embassy Completion