BENGALURU: Embassy Office Parks REIT, the first listed real estate investment trust (REIT) in India and the largest office REIT in Asia by area, said that its CEO, Aravind Maiya, will be stepping down from his role following a directive from the Securities and Exchange Board of India (SEBI). This decision follows an interim order and show-cause notice issued by SEBI on November 4, 2024, which mandated the immediate removal of Maiya as CEO. SEBI's action came after the National Financial Reporting Authority (NFRA) debarred Maiya for ten years and imposed a penalty of Rs 50 lakh for "professional misconduct" related to the audit of Coffee Day Enterprises. This audit allegedly concealed a significant fraud. The NFRA issued its order on August 19. Embassy REIT affirmed that they are reviewing the SEBI order and evaluating all available options. Although the organization is yet to announce a replacement CEO, Maiya will not be departing from the company entirely. Instead, he will transition to the role of Head of Strategy, a position where he can continue contributing to Embassy REIT's long-term planning and growth initiatives. This shift allows Maiya to remain involved in Embassy REIT’s strategic vision while adhering to the regulatory constraints imposed by SEBI. Maiya had been appointed as the CEO of the REIT's manager in July 2023.As the first publicly listed real estate investment trust in India, Embassy REIT occupies a pioneering position and is widely regarded as a benchmark for transparency and governance. In its statement, Embassy REIT underscored its commitment to maintaining high standards in governance and affirmed that the transition would not impact its day-to-day operations or investor interests. “Our focus remains on upholding the highest standards in governance and ensuring the continued success of Embassy REIT,” Embassy Office Parks REIT acting through its Manager, Embassy Office Parks Management Services Private Limited said.The company said that the REIT’s Board of Directors and management team have committed to overseeing all aspects of the organization’s operations and capital allocation during this transitional period toensure that normal business is not compromised in any manner whatsoever, while evaluating the most appropriate approach for the interim CEO position, Embassy REIT said. The first REIT of the country which was backed by Blackstone, assured stakeholders that the management team remains focused on delivering steady performance, as seen in Embassy REIT’s strong results for the first half of the 2025 fiscal year. These positive financial results underscore the trust’s resilience and the stability of its underlying assets, even amid recent regulatory challenges. The business is in great shape and the REIT’s stock performance is a reflection of the strong fundamentals in the sector. Our focus remains on upholding the highest standards in governance and ensuring the continued success of Embassy REIT.The management team has emphasized continuity and stability, assuring investors that Embassy REIT’s ongoing projects and commitments will remain on track. With its seasoned leadership team and solid foundation, the REIT is well-positioned to navigate this period of transition smoothly, the company said.Embassy REIT’s response to SEBI’s directive reflects a proactive approach to regulatory compliance and corporate governance. As one of the pioneers of the REIT model in India, Embassy REIT’s reputation extends beyond its own performance to influence the broader perception of REITs in the Indian market. This leadership change represents a pivotal moment for Embassy REIT as it strives to maintain stability, meet regulatory expectations, and continue delivering value to investors.The company said by adjusting its leadership in response to SEBI’s order, Embassy REIT aims to reinforce its commitment to transparent operations and adherence to regulatory standards. The company remains optimistic about its future, pledging to sustain its strong performance and uphold its reputation in India’s growing REIT sector.In December 2023, Blackstone, a leading global private equity firm, divested its complete 23.6% equity stake in Embassy Office Parks REIT, marking the largest block trade in India for the year. Previously, in 2020, Blackstone had liquidated an 8.7% interest in Embassy REIT, cumulatively valued at approximately $300 million according to stock exchange data. This transaction represents a strategic and substantial exit for Blackstone from its investment in one of India's prominent real estate investment trusts.In the second quarter ended September 30, 2024, the company leased 2.1 million sq ft across 24 deals, taking the total for the first half of the fiscal year to a record 4.0 million sq ft. It also revised its leasing guidance for fiscal 2025 to 6.5 million sq ft from 5.6 million sq ft, citing robust demand from corporate occupiers, including global capability centres (GCCs).Embassy REIT owns and operates 14 office parks with 51.1 million sq ft of office space in Bengaluru, Mumbai, Pune, the National Capital Region and Chennai. The portfolio comprises 38.4 million sq ft completed operating area. Its assets include four operational business hotels, two under-construction hotels and a 100 MW solar park supplying renewable energy to tenants.
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