Embassy Group will merge 11 residential and commercial projects with Indiabulls Real Estate Ltd as part of an all-stock deal where it will take control of the Mumbai-listed developer.
Indiabulls Real Estate said in a stock-exchange filing that chairman Sameer Gehlaut will cease to be its promoter after the merger and that Embassy chairman Jitendra Virwani and his related entities will be the new promoters.
Gehlaut had started exiting the real estate business some time back. He has sold a bunch of his assets, under Indiabulls Real Estates and otherwise, to move away from the sector and focus on the financial services business.
Embassy and Indiabulls Real Estate had first announced the planned merger in January. The deal also involved the merged entity raising $200 million (Rs 1,400 crore then) from private equity firm Blackstone and other financial investors.
In June, Indiabulls Real Estate had said that lockdown restrictions imposed to control the spread of the coronavirus pandemic had impacted the progress of the merger and that it aimed to complete the deal by July 15.
On Wednesday, the company said it has received the list of projects that Embassy will merge with the company. These projects cumulatively are spread across an area of 61.9 million sq ft.
Embassy Group will now have two publicly listed entities – one each for commercial and residential segments. The group along with Blackstone manages India’s first real estate investment trust—Embassy Office Parks.
The REIT portfolio has over 30 million sq ft of constructed and leased out assets and a few hotel properties. Blackstone sold a chunk of its stake in the REIT in June.