Xander sells Bengaluru office building to Embassy REIT for ₹852 crore

Bengaluru: Investment firm Xander Group Inc. has sold an office building in Bengaluru's Embassy Golf Links business park to Embassy Office Parks REIT for ₹852 crore, said a person familiar with the development.

The building, Pinehurst, is fully leased to Fidelity India. Xander India's office platform had bought it from Sanjay Ghodawat Group for ₹350 crore in 2018 to expand its commercial office portfolio in India.

Embassy REIT said on Wednesday it had entered into definitive agreements to acquire a 0.3 million sq ft property as part of its growth strategy. It declined to disclose details of the seller and tenant. “Once the deal is closed, Xander will exit the investment,” said the people cited above, who did not wish to be named. Property advisory JLL India is the transaction advisor.

Amit Shetty, chief executive of Embassy REIT, said, “Bengaluru continues to be India’s office capital, and Embassy Golf Links is home to some of the world’s most influential technology and GCCs (global capability centres). With a 100%-leased, long-tenured asset anchored by a leading global investment firm, this acquisition further strengthens our presence in this premier micro-market.”

Embassy REIT is India’s first publicly listed Reit and the largest office Reit in Asia. It owns and operates a 50.8 million-sq-ft portfolio comprising 14 office parks in Bengaluru, Mumbai, Pune, the National Capital Region, and Chennai.Mintcould not immediately reach out to Xander for comment.

Real estate investment trusts or Reits typically acquire third-party assets and right-of-first-offer (Rofo) assets from sponsors to expand their portfolios. The Embassy REIT-Xander transaction, for instance, is a third-party acquisition.

Reits pool income-generating real estate assets such as office parks and shopping malls to help investors earn a share of the income without having to purchase the properties. Securities and Exchange Board of India (Sebi) regulations require at least 80% of a Reit’s assets to be completed and income-producing.

India's Reit explosion

India has four publicly listed office Reits. The other three are Mindspace Business Parks REIT, Brookfield India Real Estate Trust (BIRET) and Knowledge Realty Trust (KRT). All these office Reits saw their net operating income, occupancy levels and distribution grow in the first half of FY26, Mint reported in November. This is expected to continue in the second half, driven by demand and leasing from GCCs and domestic occupiers.

Other Reits have also been acquiring assets. Last week, Mindspace REIT said it acquired two office assets in Mumbai and one in Pune from sponsor K Raheja Corp for ₹2,916 crore. And Brookfield Reit said in November it plans to acquire a 100% interest in Ecoworld, a 7.7 million sq ft Grade A office park in Bengaluru, for ₹13,125 crore. The property is currently part of Brookfield Properties' portfolio.

India's Reit market has grown remarkably over the past six years, with the total market capitalization of these companies increasing from $3.1 billion in FY20 to $19 billion as of 30 September 2025.

The country had just one listed Reit in 2019 and now has five, including Nexus Select Trust, the only retail-focused Reit in India. These five Reits collectively control 174 million sq ft of leasable office and retail space, property advisory JLL India said in a report this week.