India's REIT market expands with Embassy financing and Mapletree plans

India's commercial real estate sector is seeing significant activity within the Real Estate Investment Trust (REIT) market. Embassy Office Parks REIT has successfully raised ₹1,000 crore through the issuance of three-year floating-rate Non-Convertible Debentures (NCDs). This transaction, fully subscribed by a leading European multinational bank, represents the first instance of a scheduled commercial bank providing financing to an Indian REIT at the trust level, following new regulatory frameworks from the Reserve Bank of India.

Separately, Mapletree Investments, a unit of Temasek Holdings, is reportedly evaluating a plan to list a portion of its Indian office portfolio through a REIT. The potential trust could include four office parks located in Mumbai, Chennai, Pune, and Bengaluru. Mapletree and Caisse de dépôt et placement du Québec hold 40 per cent stakes in these properties. Discussions are preliminary, with a potential listing in Mumbai targeted for mid-to-late 2027. The move comes amid surging demand for office space in India as global and local firms expand their domestic footprints.