One of the leading names in the Real Estate Sector, Embassy Group,
is in discussion with Citigroup private equity amongst others for raising
$300 million, as its real estate investment trust (REIT) listing plans
in Singapore faces excessive delays on account of weakening markets
and authoritarian obstacles.
According to Sources Embassy would look at raising the cash through
multiple special purpose vehicles (SPVs). Sources also revealed that
the real estate arm of Citigroup PE was in advanced talks to invest
$100 million into one of the proposed SPVs.
Embassy, which has steered clear of a market awashed with private equity
deals, is also now raising another tranche of $200 million through 2-3
more SPVs. The development comes as Embassy's plans of raising $150
million through a REIT-like vehicle on SGX is delayed, with no definite
timeframe in sight given the choppy market conditions.
Embassy had roped in UBS and Goldman Sachs for REIT listing on SGX,
and was spinning off some of its assets into a trust structure. Sources
said one of the main assets in the trust would have been the 11 million
sq ft Manyata Tech Park in the outskirts of Bangalore.