Xander sells Bengaluru office asset to Embassy REIT for Rs 852 crore, clocks 4X return

Synopsis Xander had acquired the Pinehurst asset in 2018 for Rs 340 crore as part of its India office investment strategy. The sale at Rs 852 crore implies a gross multiple of over four times on invested equity over an eight-year holding period, according to primary research and market data. Bengaluru/Mumbai: Singapore-based investment manager Xander has exited its Pinehurst office building at Embassy GolfLinks Business Park in Bengaluru, selling the asset to Embassy Office Parks REIT for Rs 852 crore. The transaction, first announced in December 2025, was closed on March 3, 2026 after completion of formalities. The deal marks the first instance of a Real Estate Investment Trust (REIT) in India acquiring an office asset from a third party, outside the sponsor or developer group. Xander had acquired the Pinehurst asset in 2018 for Rs 340 crore as part of its India office investment strategy. The sale at Rs 852 crore implies a gross multiple of over four times on invested equity over an eight-year holding period, according to primary research and market data. Sources indicated that the original acquisition was financed with 40–50% debt, translating into an internal rate of return exceeding 30% on invested equity. Xander did not respond to queries. So far, listed REITs have largely acquired assets from within their sponsor portfolios, providing exits for group-owned commercial properties. Market participants said the transaction indicates a shift in the evolution of India’s REIT platform towards independent acquisitions. Live Events The transaction comes amid expanding activity in India’s listed REIT market, which has emerged as a vehicle for both institutional and retail investors to access income-generating commercial real estate. The country currently has five listed REITs with a combined portfolio exceeding 176 million square feet, according to data compiled by the Indian REITs Association. Office assets continue to account for the bulk of REIT portfolios. Leasing momentum across key office markets — including Bengaluru, Hyderabad, Mumbai and Delhi-NCR — has been supported by demand from global capability centres (GCCs), technology firms and domestic occupiers. Higher occupancy levels and rental escalations have contributed to growth in net operating income and distributions by listed REITs in recent quarters. “Listed REITs have delivered returns in the range of 20–30% over the past year, outperforming the benchmark Nifty Realty index, which recorded negative returns over the same period,” said experts. In a recent report, Cushman & Wakefield said the Securities and Exchange Board of India’s decision to reclassify REITs as equity instruments from January 2026 could increase capital flows into the segment. The brokerage noted that the reclassification would allow active and passive equity funds to raise exposure within existing limits, potentially improving liquidity, index inclusion and price discovery. Industry executives said the ability of REITs to pursue third-party acquisitions could widen the addressable investment universe and provide exit avenues for private equity investors holding stabilised office assets. Such transactions could also deepen the secondary market for institutional-grade commercial properties. (You can now subscribe to our Economic Times WhatsApp channel) (Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online. ...moreless (You can now subscribe to our Economic Times WhatsApp channel) (Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online. ...moreless