Embassy Developments proposes Rs 3,700 cr commercial project divestment to Embassy REIT in Bengaluru

Embassy Developments Limited (EDL), the newly merged flagship real estate platform of the Embassy Group, has proposed a premium commercial development in Whitefield, Bengaluru, to Embassy Office Parks REIT as a potential acquisition opportunity. The proposed project, with a potential leasable area of approximately 3.3 million square feet, is expected to generate a Gross Development Value (GDV) of ?3,200–?3,700 crore upon completion.

The deal, still at a preliminary stage, is subject to definitive agreements and regulatory approvals from third parties, shareholders, and unitholders. Embassy REIT has not yet entered into any formal arrangement, the company clarified.

The announcement comes alongside EDL’s first consolidated financial results post its successful merger with NAM Estates and Indiabulls Real Estate, a transaction completed earlier this year. With a 42.96% promoter stake held by the Embassy Group, EDL has now emerged as a formidable real estate force with a pan-India development pipeline.

The company reported a strong turnaround in FY2025, posting a net profit of ?203 crore compared to a loss of ?485 crore in the previous year. Revenue more than doubled year-on-year to ?2,547 crore, while EBITDA surged to ?531 crore from ?36 crore in FY24. Quarterly revenue in Q4FY25 alone stood at ?1,183 crore — nearly four times the previous quarter.

Backed by a robust land bank and strong balance sheet, EDL has set an ambitious GDV target of ?22,000 crore for FY2026, including ?18,600 crore from residential and ?3,500 crore from commercial projects. The company also aims to achieve ?5,000 crore in residential pre-sales — a 150% increase from FY25.

Aditya Virwani, Managing Director, said, “This proposed opportunity to Embassy REIT reflects our strategic focus on value creation and asset monetisation. Our goal is to leverage our commercial and residential capabilities to build a pan-India platform of scale.”

During FY2025, EDL sold 2.2 million square feet of residential space and collected ?1,900 crore in cash inflows. It launched three new residential projects with a topline of ?1,700 crore, of which 71% has already been sold. The company also acquired six new projects with a GDV potential of ?9,200 crore and monetised 19 acres in Mumbai Metropolitan Region (MMR).

Led by Chairman Jitendra Virwani — known for creating India’s first listed REIT — the company is sharpening its focus on high-growth cities like Bengaluru, MMR, National Capital Region (NCR), and Chennai. As of March 2025, EDL’s gross debt stood at ?2,756 crore, with a conservative debt-to-equity ratio of 0.3x and cash reserves of ?483 crore.

Embassy Developments now controls a GDV pipeline of ?48,000 crore across ongoing and upcoming projects, further strengthened by fully paid land banks ready for development.