Phoenix group a real estate firm Real estate company bought back 50% shares from the Embassy group. These stakes are taken back in three special economic zones (SEZs) that are located in Hyderabad. However, the amount of these bought back shares are not yet to be disclosed. In the next five years, the total investment in these projects is estimated to be Rs 2,000 crore.
The Hyderabad –based Phoenix group and Embassy group planned to develop projects of nearly 10 million sq. ft. as a joint venture. The Phoenix group plans to build and finance these projects after the Embassy group made an exit.
According to the sources, these projects didn’t absorb in the recent REIT of the Embassy group and this is the reason behind their exit. On the other hand, Phoenix is exploring opportunities to prepare a strong commercial portfolio.
The Embassy Office Parks REIT, is a joint venture between private equity firm Blackstone and the Embassy group. They raised Rs. 4,750 crore from the market in March. The REIT’s portfolio in the Embassy group comprises of approximately 33 million sq. ft. of office space across major cities in the India.
Aditya Virwani, chief operating officer, Embassy Group said that the company is focusing on expansion in Bengaluru, Chennai, Mumbai, Gurgaon, Pune and Trivandrum. Thus, we have decided to walkout of Hyderabad at this point of time.
The Phoenix group provided land for the joint venture named Phoenix Embassy Tech Zone while the Embassy group was an equity partner.
In 2017, Rs. 450 crore construction finance was given by the Piramal Finance to this joint venture for sanction and development of the SEZs.