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BUILDING RELATIONSHIPS
ENRICHING LIVES
EMBASSY REIT
2
Disclaimer
By attending the meeting where this presentation (the “Presentation”) is made, or by reading the Presentation materials, you agree to be bound by the following limitations:
This Presentation is strictly private and confidential and is intended exclusively for the intended recipients. This Presentation and the information contained herein may not be disclosed,reproduced, retransmitted, summarized, distributed or furnished, in or whole or in part, to any other person or persons. Any printed form of this Presentation must be returned to usimmediately at the conclusion of the Presentation.
This Presentation is for information purposes only without regards to specific objectives, financial situations or needs of any particular person, and the information contained herein doesnot constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for, or advertisement with respect to, the purchase or sale ofany security (including any units or securities of Embassy Office Parks REIT (the ”REIT”) in the United States or in any other jurisdiction, and no part of it shall form the basis of or berelied upon in connection with any contract or commitment whatsoever.
The material that follows is a Presentation of general background information. We don’t assume responsibility to publicly amend, modify or revise any forward looking statements on thebasis of any subsequent development, information or events, or otherwise. This Presentation comprises information given in summary form and does not purport to be complete and itcannot be guaranteed that such information is true and accurate. This Presentation should not be considered as a recommendation to any person to subscribe to any security. ThisPresentation includes statements that are, or may be deemed to be, “forward-looking statements”. By their nature, forward-looking statements involve risks and uncertainties becausethey relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance including those relatingto general business plans and strategy, future outlook and growth prospects, and future developments in its businesses and its competitive and regulatory environment. Norepresentation, warranty or undertaking, express or implied, is made or assurance given that such statements, views, projections or forecasts, if any, are correct or that the any objectivesspecified herein will be achieved.
Neither we, nor any of our affiliates or advisors, as such, make any representation or warranty, express or implied, as to, and do not accept any responsibility or liability with respect to,the fairness, accuracy, completeness or correctness of any information or opinions contained herein and accept no liability whatsoever for any loss, howsoever, arising from any use orreliance on this Presentation or its content or otherwise arising in connection therewith. Unless otherwise stated in this Presentation, the information contained herein is based onmanagement information and estimates. The information contained herein is subject to change without notice and past performance is not indicative of future results.
Embassy Office Parks REIT is proposing, subject to, receipt of requisite approvals, market conditions and other considerations, to make an initial public offering of its Units and has filedthe Offer Document dated March 11, 2019 ("Offer Document") with SEBI. The Offer Document is available on the websites of SEBI, BSE, NSE at www.sebi.gov.in, www.bseindia.comand www.nseindia.com respectively GCBRLMs at www.morganstanley.com, www.investmentbank.kotak.com, www.jpmipl.com and www.ml-india.com and BRLMs atwww.axiscapital.co.in, www.creditsuisse.com, www.db.com/India, www.goldmansachs.com, www.hsbc.co.in/1/2/corporate/equitiesglobalinvestmentbanking, www.iiflcap.com,www.jmfl.com & www.nomuraholdings.com/company/group/asia/india/index.html Potential investors should note that investment in Units involves a high degree of risk and for detailsrelating to the same, see "Risk Factors" beginning on page 22 of the Offer Document.
The units or securities of the REIT have not been and will not be registered under the U.S. Securities Act, 1933, as amended (“U.S. Securities Act”) or any state securities laws in theUnited States, and unless so registered may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registrationrequirements of the U.S. Securities Act and applicable state securities laws. The units or securities have not been and will not be registered, listed or otherwise qualified in any otherjurisdiction outside India and may not be offered or sold, and bids may not be made by persons in any such jurisdiction, except in compliance with the applicable laws of such jurisdiction.
We do not intend to register securities or to conduct a public offering of securities in the United States. By attending this meeting, you confirm that you are either (i) a “qualified institutionalbuyer” as defined in Rule 144A under the U.S. Securities Act, or (ii) outside the United States. Any failure to comply with the foregoing and below restrictions may constitute a violation ofapplicable securities laws.
This document is just a Presentation and is not intended to be a “prospectus” or “draft offer document” or “offer document” or “final offer document” or “offer letter” or “offeringmemorandum” (as defined or referred to, as the case may be, under the Companies Act, 2013 and the rules notified thereunder, and the Securities and Exchange Board of India (RealEstate Investment Trusts) Regulations, 2014, as amended, or any other applicable law). It is clarified that this Presentation is not intended to be a document or advertisement offering forsubscription or sale of any securities or inviting offers or invitations to offer or solicitation to offer from the public (including any section thereof) or any class of investors. This Presentationhas not been and will not be reviewed or approved by a regulatory authority in India or elsewhere or by any stock exchange in India or elsewhere.
If the we should at any time commence an offering of securities, any decision to invest in any such offer to subscribe for or acquire securities must be based wholly on the informationcontained in a final offer document or offering circular (including the risk factors mentioned therein) issued or to be issued in connection with any such offer and not on the contentshereof. Any offering circular will only be provided to potential investors in the United Arab Emirates upon request.
This Presentation is not intended to be an offer or placement for the purposes of the Alternative Investment Fund Managers Directive (“AIFMD”), and any “marketing” as defined underAIFMD may only take place in accordance with the national private placement regimes of the applicable European Economic Area jurisdictions.
3
Seven Infrastructure-like Office Parks (31 msf)(1)
Embassy Golflinks
Bengaluru (2.7 msf)(2)
Embassy Manyata
Bengaluru (14.2 msf)
Embassy Quadron
Pune (1.9 msf)
Embassy Techzone
Pune (5.5 msf)
Embassy Oxygen
Noida (3.3 msf)
Embassy Galaxy
Noida (1.4 msf)
Embassy Qubix
Pune (1.5 msf)
Note: For additional detail, please see notes at the end of the Presentation.
4
Four Prime City-center Offices (2.4 msf)
FIFC
Mumbai (0.4 msf)
Express Towers
Mumbai (0.5 msf)
Embassy 247
Mumbai (1.2 msf)
Embassy One
Bengaluru (0.3 msf)
5
Pan-India Best-in-class Office Portfolio
Mumbai (16.2%)
Pune (14.4%)
Bengaluru (60.5%)
Noida (8.9%)
33 msfLeasable Area(1)
75High Quality Office Buildings
across 11 Commercial
Offices
4Gateway Cities
160+Marquee Tenant Base
Note: City wise split by % of Market Value.
(1) Includes 24.8 msf sf of Completed Area, 2.5 msf of Under Construction Area and 5.4 msf of Proposed Development Area
6
Compelling Business Opportunity
India has become a global hub for corporates services over the last 20 years leading to 15% annual
employment growth in the technology services sector
Outsized services sector growth has in turn resulted in key Indian cities having amongst the highest
office absorption globally(1)
Compelling Industry
Fundamentals
Best-in-class
Portfolio with
Multinational Tenants
Embassy REIT provides infrastructure-like office parks with best-in-class amenities at competitive
rents to multinationals
95% leased to marquee tenants with 81% of rents from multinational corporations
Located in India’s key office markets with our assets outperforming the market
Asia’s largest office REIT(2) – 33 msf portfolio of office parks and prime city-center offices
Experienced
Management Team
and Renowned
Sponsors
Seasoned management team with 20 years average experience
Active asset management driving stable occupancy and strong rent growth
Backed by renowned sponsors – Embassy Group and Blackstone
Simple Business
Model with Strong
Embedded Growth
7 year WALE(3) with contractual escalations
34% mark-to-market growth potential(4); 48% re-leasing spreads on 2.7 msf over last three years and
nine months
7.9 msf on-campus development pipeline to accommodate tenant expansion and potential ROFO
assets to enhance growth
Low leverage(5) provides flexibility for growth through value accretive acquisitions
High quality office portfolio, serving as essential corporate infrastructure to multinational tenants, with
significant embedded growth aspects
Note: For additional detail, please see notes at the end of the Presentation.
7
Multinational Tenant Base of Blue-chip Companies
Multinational
Corporate
Tenants
81%
Indian
Corporates
19%
81% of Rents from
Multinational Corporations(as of December 31, 2018)
43% of Rents from
Fortune 500 Tenants(as of December 31, 2018)
Fin
an
cia
l
Serv
ices
E&
MC
on
su
ltin
gH
ea
lth
ca
reT
ech
no
log
yO
the
rs
Google Microsoft IBM Cognizant
Goldman
Sachs
JP Morgan Wells
Fargo
PwC Accenture
Volkswagen NOKIARolls-
Royce
Legato
Maersk Target Lowe’s
$150 -210
$160 -220
$275 -325
$175 -225
$600 -700
$1,000 -1,100
$3,100 -3,150
$3,100 -3,150
$400 -500
$1,450 -1,500
$850 -950
$350 -450
$800 -900
$2,100 -2,150
$900 -1,000
Bengaluru NCR Mumbai Pune Shanghai Beijing HongKong
Tokyo Munich CentralLondon
NewYork
LosAngeles
SanFrancisco
Singapore Sydney
8
Capital Values Significantly Below Peers
Real estate capital values in Embassy REIT’s markets are significantly below other global peers
Capital Values(USD psf)
Embassy REIT’s
Markets
Note: For additional detail, please see notes at the end of the Presentation.
Note: CBRE Research, 2018.
9
Considerable Cost Arbitrage in Terms of Office Rents
Embassy REIT’s markets offer significantly cheaper rentals compared to global commercial hubs
Market Rents in Major Global CitiesQ1 CY 2018 (USD psf /year)
$14.4 $14.9$24.9
$15.6
$85.0
$120.0
$108.0 $108.0
$50.3
$147.9
$61.9
$35.9
$56.7
$89.0
$44.0
Bengaluru NCR Mumbai Pune Shanghai Beijing HongKong
Tokyo Munich CentralLondon
NewYork
LosAngeles
SanFrancisco
Singapore Sydney
Embassy REIT’s
Markets
Note: Years refer to the calendar year ending December 31 respectively. For additional detail, please see notes at the end of the Presentation.
Note: CBRE Research, 2018.
5.6%
10.0%
4.0%
Jun-08 Jun-10 Jun-12 Jun-14 Jun-16 Jun-18
10
Strong U.S. Labour Market Driving Indian Technology Services Growth
Low unemployment and strong wage growth in the U.S. improves attractiveness of Indian technology
services
Decadal Low Unemployment in the U.S. Resulting
in 2.5m STEM Employee Shortage(% unemployment)
Strong U.S. Wage Growth Driving
Technology Sector Employment in India(Rebased to 100 in 2011)
100
117
159
2011 2012 2013 2014 2015 2016 2017 2018
U.S. Private Sector Wages India Technology Employment
(3)
(2)
(1)
Note: CBRE Research, US Bureau of Labor Statistics.
Note: STEM denotes employees engaged in the fields of science, technology, engineering and mathematics. For additional detail, please see notes at the end of the Presentation.
37
318
2000 2018F
11
Abundant Talent and Cost Savings Driving Economic Growth and Office Absorption
Availability of skilled English speaking talent and a low cost base continues to attract global
companies to use India for large services operations leading to high office absorption
Space Occupied by Technology Sector(msf)
India’s Competitive Advantages
Technology
Sector
Growth
Cost
Advantage
15% CAGRTechnology sector employee
growth from 2000 to 2018F
6.4 millionGraduates annually
85%Lower cost structure than US Tier
II cities
Large
Talent Pool
Cost Arbitrage
Services(1)
(call centers, BPOs,
testing)
High Value,
Less Cost
Sensitive
Services
(R&D, Healthcare)
Note: CBRE Research, 2018.
Note: Years refer to the calendar year ending December 31 respectively.
(1) For pre-2000 period.
12
Our Markets Continue to Witness Strong Fundamentals
Embassy REIT’s markets have witnessed strong absorption growth (up 26% from 2013 to 2018F) with
forecast supply remaining constrained and expected to be below historical average absorption
Absorption(1)
(msf)
Supply(1)
(msf)
23.8
30.1
2013 2018F
24.124.6
Avg. from 2013–2017
Avg. from 2018F–2019F
Note: Years refer to the calendar year ending December 31 respectively. For additional detail, please see notes at the end of the Presentation.
Note: CBRE Research, 2018.
13
Key Indian Cities Have amongst the Highest Office Absorption Globally
Our four markets have experienced total absorption of 136 msf from CY 2013 to Q1 2018, more than 11
global cities combinedAbsorption
CY 2013–Q1 2018 (msf)
56.7
31.129.1
18.9
28.6
17.2
5.4
19.0
14.6
5.6
10.0 9.6 9.16.3
3.1
Bengaluru NCR Mumbai Pune Shanghai Beijing HongKong
Tokyo Munich CentralLondon
NewYork
LosAngeles
SanFrancisco
Singapore Sydney
135.8 msf
Embassy REIT’s
Markets
128.4 msf
Other Global Cities
Note: Years refer to the calendar year ending December 31 respectively. For additional detail, please see notes at the end of the Presentation.
Note: CBRE Research, 2018.
14
Portfolio Overview
Stable tenant base with 95% committed occupancy and 81% tenant retention over the last three
years and nine months
72% of our tenant base is from the services sector (key driver of India’s growth)
6.8 msf of new leasing over the last three years and nine months without incurring material
Tenant Improvements (“TI”) capex
Highly Occupied by
Marquee Tenant Base
Strategically located in India’s key office markets of Mumbai, Bengaluru, Pune and Noida
Our assets outperform their markets: 940 bps higher occupancy, 270 bps higher rent CAGR(1)
World-Class Assets
with Outstanding
Amenities
In-fill Locations with
Significant Scale
7 infrastructure-like office parks and 4 prime city-center offices
Complete business ecosystem with landscaped environments and amenities such as 1,096 on-
campus hotel keys(2), food courts, gymnasiums, childcare and employee transportation
Attractive Yield
Spreads
175 bps–575 bps premium to capitalization rates for assets of similar quality and tenant profile
in United States, Japan and China
Note: For additional detail, please see notes at the end of the Presentation.
Embassy REIT’s Markets Represent 77% of
India’s Office Absorption2013–Q1 2018 (% of absorption for Top 7 Indian Cities)
Bengaluru32%
NCR18%
Mumbai17%
Pune11%
Others23%
15
Embassy REIT’s Assets Are Well Positioned in India’s Four Key Office Markets
26%Absorption growth since 2013 for
Embassy REIT’s markets(2)
72%Of India’s Grade A office stock
concentrated in Embassy REIT’s markets(1)
780 bpsIncrease in occupancy since 2013 for
Embassy REIT’s markets(3)
Note: Years refer to the calendar year ending December 31 respectively. For additional detail, please see notes at the end of the Presentation.
Source: CBRE Research, 2018. India’s top 7 cities include Mumbai, NCR, Bengaluru, Pune, Chennai, Hyderabad and Kolkata.
16
Infrastructure-like Office Parks with Best-in-class Amenities
Food Court at Embassy Galaxy
Noida
Hilton at Embassy Golflinks
Bengaluru (247 Keys)
Embassy Quadron
Pune (1.9 msf | 25 acres)
17
Our Assets Provide a Complete Business Ecosystem
Tenant EngagementAlfresco Dining
Amphitheatre
Sports Facilities
Childcare Facilities
Gymnasium
Public Transport Social Responsibility
18
Sustainability Initiatives
Our focus on energy sustainability and environment conservation is a key differentiator
Community
Engagement
Sustainable
Energy
Environment,
Health and Safety
100MW Solar Plant supplying green power to
Bengaluru assets and hotels
Many LEED Platinum / Gold rated assets
Create a sense of community by organizing cultural,
lifestyle and corporate social responsibility events
Undertaken environment friendly green initiatives such
as employee transportation facilities
100 MW Solar Plant
Cycling Event
2 British Safety Council Sword of Honour winning
parks (2017) for select assets
Environmental, Health and Safety Certifications such
as ISO / OHSAS for select assets
Awards and Certifications
19
Embassy REIT’s Assets Have Outperformed Their Markets
High quality assets with robust infrastructure and amenities backed by professional asset
management has resulted in strong outperformance by our Portfolio
Occupancy(1)
(%)
Rents(2)
2013 – Q1 2018 (Indexed Rents 2013 = 100)
77.8%
80.8% 81.4%
84.5% 85.5% 85.6%
94.3%92.8% 93.4% 93.4%
94.7% 95.0%
2013 2014 2015 2016 2017 1Q 2018
90
110
130
150
2013 2014 2015 2016 2017 1Q 2018
Embassy REIT’s Markets Embassy REIT’s Assets
940 bps270 bps
CAGR: 6.9%
CAGR: 4.2%
Note: Years refer to the calendar year ending December 31 respectively. For additional detail, please see notes at the end of the Presentation.
Note: CBRE Research, 2018.
Existing Tenants
62%
New Tenants
38%
15%–20%
2%–5%
US real estatecompanies
Indian real estatecompanies
20
Deep Tenant Relationships and Asset Quality Driving Strong Leasing Traction
Scale and quality of our assets have resulted in 6.8 msf of new leasing over the last three years and
nine months without incurring material TI CapEx
6.8 msf of New Leasing
over the Last Three Years and nine months Area Leased (msf)
Typical TI Capex (% of Rental Revenue)(1)
(1) Source: CBRE Research.
0.5
0.9 0.8
1.4
3.2
Q4-FY2019
FY 2020 FY 2021 FY 2022 FY 2023
21
Embedded Mark-to-market Growth Potential
Market Rents Are 34% above
In-place RentsRents (INR psf/month)(1)
29% of Occupied Area Expiring
between Q4 2019 – FY 2023 Area Expiring (msf)
62
83
In-place Rents Market Rents
Mark-to-
Market
Opportunity
8.3% 37.3% 59.3%
Rents
Expiring
(%)
1.8% 4.9% 3.8% 6.1% 9.4%
(1) Based on management's estimates
22
Strong Track Record in Re-leasing to Market with High Value Tenants
Achieved 48% Average Re-leasing Spreads
on 2.7 msf Area over last three years and nine
months(% Increase in Base Rents)
Re-leasing to High-Value
Services Tenants(Rents INR psf/month)
26.6%
60.7%
35.3%
49.3%
FY 2016 FY 2017 FY 2018 9mFY19
51
77
Before After
46
133
Before After
Embassy Golflinks (145k, 9mFY19)
Embassy Manyata (56k sf, 9mFY19)
Area
Re-
leased
(msf)
0.3 1.1 0.5 0.8
Leading Retail
Store
Leading
Technology Tenant
Leading Software
Developer
Leading
Technology Tenant
48.0% Average
1.4 1.3 0.9
1.8 1.5
0.5
0.6 0.7
0.3
3.0
FY 2014 FY 2016 FY 2018 FY 2019 FY 2021 Post FY 2021
Manyata Oxygen Techzone
23
Complete On-campus Development Pipeline
Demonstrated development capability with 4.1 msf delivered over the last five years and nine months
Development Experience & Future Potential(msf)(1)
De-risked Development(High Pre-leasing)
Embassy Oxygen | 0.5 msf (Tower 3)
Perspective Actual
92%Pre-leased
(Nov-18 completion)
3.6 msf & 0.5 msf
added in Manyata & Oxygen
respectively
(1) Excludes 619 hotel keys across Hilton and Hilton Garden Inn in Manyata
24
Strong Embedded Growth
Contracted NOI growth drives approximately 50% of projected NOI growth (FY 2019 – FY 2021)
16,141
2,629
1,4691,209
21,447
FY 2019 ContractedNOI Growth
Vacancy Lease-up &Development
Re-leasing at Market,Hotel Stabilization &
Others
FY 2021
NOI Bridge(INR in millions)
% of Total
Growth50% 27% 23%
(1)
(2)
Note: For additional detail, please see notes at the end of the Presentation.
25
Embassy Sponsor’s Potential ROFO Assets to Drive Growth
Embassy REIT will have a ROFO on certain assets owned by the Embassy sponsor potentially
expanding our presence to Chennai which is other key Indian office market
Embassy Splendid TechZone
(Chennai | 5.0 msf)
Embassy TechVillage
(Bengaluru | 12.2 msf) 42.8 msf | 4 assets
Being developed by Embassy across strong markets such
as Bengaluru & Chennai
ROFO Mechanism
Specifications Compliant with REIT regulations
At least 50% area developed
Applicability
Controlling interest of Embassy Group
Triggered upon any change in
controlling interest by Embassy
Asset Size Market value not less than INR 7.5
billion
30 - 40%
18 - 22%
Less than 15%(Post utilization of IPO
proceeds)
26
Flexible Capital Structure for Disciplined Acquisition Strategy
Conservative balance sheet, post utilization of IPO proceeds, provides significant flexibility for growth
through value accretive ROFO and third-party acquisitions
Net Debt to GAV
Hong Kong
based REITs
Singapore
based REITs
(1) Source: CBRE Research.
27
Simple Business Model
Strong Balance Sheet
2.5 msf currently under construction on entitled land within Embassy REIT’s assets
Hilton branded hotels totaling 619 keys currently under construction within our assets
Further 5.4 msf of Proposed Development Area to accommodate tenant expansion
Near-Term
Leasing Upside to Drive
Growth
Lease-up of existing 5% vacancy – largely transitional and concentrated in select assets
Significant mark-to-market opportunity – market rents are 34% above in-place rents(1)
Lowly leveraged initially with less than 15% loan-to-value post utilization of IPO proceeds
Significant flexibility enables growth through ROFO asset and third-party acquisitions
On-campus
Development Potential
Stable Cash Flows Stable, long-term contracted rents with 10%–15% contractual escalations every 3–5 years
81% of rents from multinationals with 43% from Fortune 500 companies
(1) Based on management's estimates
28
Embassy REIT Manager
Highly experienced senior management team with over 20 years of average experience
Exp
eri
en
ce
20+ Years
Experience
Former
Country Manager
and Managing
Director of JLL
India
Former CEO of
Assetz Property
Group
11+ Years
Experience
Former MD,
Blackstone Real
Estate
Former VP at
Piramal Fund
Management
(erstwhile
IndiaREIT)
23+ Years
Experience
Worked in various
positions with the
Manipal Group
17+ Years
Experience
Key person of
Samsara Fund
Advisors Private
Limited
Former VP of
Acquisitions at
Starwood Capital
Group
26+ Years
Experience
Former Deputy
General Manager
– Leasing and
Marketing
(Commercial) at
Larsen & Toubro
Limited
12+ Years
Experience
Former ED at
Nomura
Singapore Limited
and Director at
UBS AG
Singapore Branch
Management
Summary
The Manager and the Asset SPVs together have over 60 employees
Hands on expertise in asset management, leasing, development, acquisitions and financing
Strong relationships with tenants, lenders and capital providers
Michael
Holland
CEO
Vikaash Khdloya
Deputy CEO / COO 1Rajesh Kaimal
CFO
Sachin Shah
CIO
Bhhavesh Kamdar
Head, Leasing
Ritwik
Bhattacharjee
Head, Investor
Relations
(1) Will be deputy CEO/COO on the date of listing
29
Active Asset Management Driving Strong Performance
Leasing
Rental Growth
Tenant Initiatives
6.8 msf of new leasing over the past three years and nine months
7.7 msf of renewals over the past three years and nine months
7.1% Same-Store Rental CAGR across portfolio assets & investment from FY
2016 to FY 2018
48% re-leasing spreads on 2.7 msf over the past three years and nine months
Pioneered tenant engagement programs such as “Energize” and “Q-Life”
Development
Expertise Completed 4.1 msf of development over the last five years and nine months
Asset Upgrades /
Refurbishments
Upgraded 7 food courts and 33 office lobbies across assets over the last three
years and nine months
30
Strong Corporate Governance Framework
Embassy REIT has incorporated adequate corporate governance standards to protect unitholder value
Asset
Debt
Manager
50% independent directors on the Board, with 50% representation on all committees
Manager can be removed with 60% approval of unrelated unitholders
Alignment with unitholder interests due to a distribution linked management fees
structure
Minimum 80% of value in completed and leased properties
Minimum 90% of distributable cash flows to be distributed
Restrictions on speculative land acquisition
Majority unitholder approval required if debt(1) exceeds 25% of asset value
Debt cannot exceed 49% of asset value
Strong Related
Party
Safeguards
Sponsors are prohibited from voting on their related party transactions
Majority unitholder approval required for acquisition or disposal of asset which exceeds
10% of REIT value
Acquisition or sale price of new asset cannot deviate from average valuation of two
independent valuers by +/- 10%
(1) Debt includes consolidated borrowings and deferred payments of the REIT, Hold Co and SPV’s.
31
Experienced Board
Nominee Directors Independent Directors
Vivek Mehra
Ex-Partner for PricewaterhouseCoopers Private
Limited
Anuj Puri
Director at ANAROCK Investment Advisors
Private Limited
Dr. Punita Kumar Sinha
Ex-Portfolio manager, Oppenheimer Asset
Management
Dr. Ranjan Pai
Former Managing Director and CEO of Manipal
Group
Jitendra Virwani
Chairman & Managing Director,
Embassy Group
Christopher Heady
Chairman of Blackstone Asia Pacific
Head of Blackstone Real Estate Asia
Tuhin Parikh
Senior Managing Director of Blackstone Real
Estate’s operations in India
Aditya Virwani
On the board of several Embassy group
companies
32
Credible Sponsors with Significant Local and Global Expertise
45 MSFCompleted area across
residential and office
development
Integrated
PlatformProject management,
land acquisitions and
marketing of real estate
assets
ExtensiveLand bank held
across the
country
Local
Expert
$119BInvestor Capital
under management (1)
473 Real Estate
ProfessionalsWorking globally (1)
Public offeringsHilton and
Invitation Homes
Global
Manager
(1) As of June 30, 2018
33
Notes
All figures in this presentation are as of December 31, 2018 unless specified otherwise
All figures corresponding to year denoted with “FY” are as of or for the one year period ending (as may be relevant) 31st
March of the respective year. Similarly, all figures corresponding to year denoted with “CY” are as of or for the one year
period ending (as may be relevant) 31st December of the respective year
Some of the figures in this Presentation have been rounded-off to the nearest decimal for the ease of presentation
Any reference to long-term leases or WALE (weighted average lease expiry) assumes successive renewals by tenants at
their option
Key Terms and Definitions:
1. 1. Embassy Group: refers to the Embassy Sponsor or its subsidiaries or limited liability partnerships
2. 2. Mumbai: represents MMR – Mumbai Metropolitan Region
3. 3. NCR: represents Delhi National Capital Region
4. 4. NOI: Net Operating Income calculated by subtracting Direct Operating expenses from Revenue from operations
5. 5. Occupancy / % Occupied / % Leased: refers to Committed Occupancy unless specified otherwise. Committed
Occupancy is defined as the ratio of the Occupied Area including Completed Area under letter of intent and the
Completed Area
6. 6. Rents: refers to Gross Rentals unless specified otherwise. Gross Rentals are defined as the sum of Base Rentals,
fit-out and car parking income from Occupied Area for the month of March 2018
7. 7. Rolls-Royce: refers to Rolls-Royce India Private Limited
8. 8. Years: refers to fiscal years unless specified otherwise
34
Notes
Page 3:
(1) Includes 7.9 msf of Under Construction and Proposed Development Area
(2) Details for 100% of GLSP; Embassy REIT will own a 50% economic interest in GLSP
Page 6:
(1) Source: CBRE Research. In terms of total absorption for select major office centers from CY 2013–Q1 CY 2018
(2) As at December 31, 2018. Largest REIT by area amongst comparable Asian office REITs. Includes 24.8 msf completed area and 7.9 msf
development potential
(3) Weighted Average Lease Expiry assuming that each tenant exercises the right to renew for future terms after expiry of initial commitment period
(4) Based on management’s estimates
(5) Post utilization of IPO proceeds
Page 8:
(1) NCR represents Delhi National Capital Region, which includes Noida
Note: For Bengaluru, NCR, Pune, Mumbai and Sydney, the capital values highlighted above have been computed based on the indicative yields
prevalent in the respective markets and representative of Grade A office spaces. For all other cities the values are average capital values for strata sold
developments in the respective cities.
Page 9:
(1) Noida, where Embassy Oxygen and Embassy Galaxy are located, is a submarket of NCR (National Capital Region)
Note: New York, Los Angeles and San Francisco represents Gross Asking Rent; Hong Kong, Tokyo, Singapore, Beijing, Shanghai represents Grade A
rent on Net Floor Area; Sydney represents rent for all grades on Net Floor Area; Central London, Munich, Mumbai, Pune, NCR and Bengaluru
represents Grade A rent on Gross Area. Rents for Central London and Munich are representative of Prime Rents. Rents for Bengaluru, NCR, Mumbai
and Pune have been calculated based on the weighted average of market rents and occupied stock of the respective sub markets within the city.
Page 10:
(1) Represents 2.5 million people employed in the India technology industry and an hourly wage of $23.0 in the US Private Sector in FY 2011
(2) Represents an average hourly wage of $26.8 in FY 2018
(3) Represents 3.97 million employed in FY 2018
Page 12:
(1) For Embassy REIT’s markets – Bengaluru, Pune, Mumbai and NCR
(2) Average of the annual supply in the relevant period
35
Notes
Page 13:
(1) Noida, where Embassy Oxygen and Embassy Galaxy are located, is a submarket of NCR (National Capital Region)
Note:
(1) For office stock in India, CBRE defines “Grade A” as a development type, of which tenant profile should include prominent multinational
corporations, while the building area should not be less than 100,000 square feet. The development should include an open plan office with large
size floor plates, adequate ceiling height, 24x7 power back-up, supply of telephone lines, infrastructure for access to internet, central air-conditioning,
spacious and well-decorated lobbies, circulation areas, good lift services, sufficient parking facilities and should have centralized building
management and security systems.
(2) For office stock outside of India, “Grade A” development has different definitions depending on the jurisdictions the developments are located in
Page 14:
(1) Source: CBRE Research, 2018. For Embassy REIT’s markets. Occupancy figures as of March 31, 2018. Rent CAGR over CY 2013–Q1 CY 2018
(2) Includes 477 completed and 619 under construction hotel keys
Page 15:
(1) As of March 31, 2018. Includes Bengaluru, Pune, Mumbai and NCR
(2) Calculated as the percentage increase in the absorption expected for CY 2018 over the CY 2013 actual absorption
(3) Includes Bengaluru, Pune, Mumbai and NCR. Occupancy has increased to 85.6% in Q1 CY 2018 from 77.8% in CY 2013
Page 19:
(1) Occupancy for REIT assets is as on March 31 of the respective year
(2) Market rents for assets as per CBRE
Page 24:
(1) Includes incremental NOI of INR 455 million on account of solar assets
(2) Includes incremental NOI from hotels (INR 423 million) and mark-to-market opportunity (INR 174 million)
Note: Excludes 50% interest in Embassy Golflinks as that is a JV interest. Our 50% stake in Embassy Golflinks contributes a further INR 1,648 million
and INR 2,026 million NOI in FY 2019 and FY 2021, respectively.
THANK YOU
27/03/20
19
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