Despite the disruptions by artificial intelligence (AI,) it is also driving growth in jobs and office properties, said Amit Shetty, chief executive at Embassy Office Parks REIT.
” A lot of the newer companies that are coming in want to harness the AI talent that is available in the country. Two things, our country has the largest data scientist talent as well as the second largest AI talent in the world,” Shetty said in an interaction with Financial Express on Wednesday.
Expanding GCC Footprint
Shetty said earlier only the fortune 500 companies were coming into the country.” Now we are seeing fortune 2000 companies coming meaningful mid- market, companies coming into the country, setting up their shops,” he said.
He said despite job losses, there is a lot of “meaningful” activity in the Global capacity centers (GCCs).
The 83 million square feet of absorption of office properties in the country last year was the highest ever absorption recorded.He said 45% was contributed by GCCs.
The REIT got 60% leasing from GCCs and 67% of its rentals came from GCCs. Shetty expected 200 bps jump in leasing from GCCs in FY27.
Organic Growth and Refinancing
The REIT said 50% growth upside will come from organic route , meaning building its own properties and it is acquiring properties of 12 million sq ft in next 4 to 5 years in Pune, Mumbai, Bengaluru and so on.
The REIT guided for net operating income (NOI) growth of 13% and achieved 15% in FY26 and they have guided and achieved guidance of 10% in distribution.
The REIT has NOI growth of 13% in FY,27 and distribution growth of 10% in FY27.
Shetty said out of the Rs 9000 crore planned fund raise, Rs 5500 crore will go towards refinancing , Rs 1400 crore to 1500 crore will go into construction, rest can go for replacing some of their high-cost debt.