Blackstone to sell a $480 million interest in Indian REIT
Real Estate

Blackstone to sell a $480 million interest in Indian REIT

According to sources, Blackstone and Bain Capital are in discussions to sell about half of Blackstone's stock in Embassy Office Parks, India's largest real estate investment trust, for up to US$ 480 million at current pricing. If a deal is reached, it would be Bain’s first REIT investment in India, where office space is luring investors as many people are returning to their places of employment as the COVID- 19 outbreak fades. As Blackstone modifies its portfolio, it would entail a further sell-down of its Embassy investment.

The negotiations are still in the beginning stages. The first source with firsthand knowledge of the subject stated that the aim is to carry out the purchase through block trades on Indian stock exchanges in the upcoming weeks, though a timetable or pricing have not been decided. India's first REIT to list was Embassy Office Parks in 2019. It is the largest office REIT in Asia and owns and runs office parks and buildings having more than 43.2 million square feet in locations like Bengaluru and Mumbai. Currently, Blackstone owns 24% of Embassy REIT, which has a market capitalisation of USD 4 billion. According to the sources, the private equity group intends to sell 10-12% of it.

The largest office rental growth in the Asia-Pacific market between October and December, according to Knight Frank, was seen in Bengaluru and Mumbai. The company also predicted that office rents in Indian cities will rise over the coming year. Over the past ten years, Bain Capital, which oversees more than USD 160 billion in assets globally, has invested more than USD 3 billion in India, including in the country's top private lender Axis Bank.

According to sources, Blackstone and Bain Capital are in discussions to sell about half of Blackstone's stock in Embassy Office Parks, India's largest real estate investment trust, for up to US$ 480 million at current pricing. If a deal is reached, it would be Bain’s first REIT investment in India, where office space is luring investors as many people are returning to their places of employment as the COVID- 19 outbreak fades. As Blackstone modifies its portfolio, it would entail a further sell-down of its Embassy investment. The negotiations are still in the beginning stages. The first source with firsthand knowledge of the subject stated that the aim is to carry out the purchase through block trades on Indian stock exchanges in the upcoming weeks, though a timetable or pricing have not been decided. India's first REIT to list was Embassy Office Parks in 2019. It is the largest office REIT in Asia and owns and runs office parks and buildings having more than 43.2 million square feet in locations like Bengaluru and Mumbai. Currently, Blackstone owns 24% of Embassy REIT, which has a market capitalisation of USD 4 billion. According to the sources, the private equity group intends to sell 10-12% of it. The largest office rental growth in the Asia-Pacific market between October and December, according to Knight Frank, was seen in Bengaluru and Mumbai. The company also predicted that office rents in Indian cities will rise over the coming year. Over the past ten years, Bain Capital, which oversees more than USD 160 billion in assets globally, has invested more than USD 3 billion in India, including in the country's top private lender Axis Bank.

Next Story
Resources

Madhya Pradesh Champions Inclusive Tourism at Heritage Sites

On the occasion of World Heritage Day, Madhya Pradesh is taking a significant step toward inclusive tourism by making its historical sites accessible to all — especially persons with disabilities. The state is rolling out its ‘Accessibility Infrastructure and Development’ project at Maheshwar, Mandu, Dhar, and Orchha, aiming to create a more welcoming experience at these iconic cultural destinations.The initiative, under the leadership of Chief Minister Dr Mohan Yadav and Tourism Minister Shri Dharmendra Bhav Singh Lodhi, includes infrastructure upgrades such as ramps, Braille signage, w..

Next Story
Resources

Runwal Realty Onboards Sonam Kapoor as Brand Ambassador

Real estate major Runwal has unveiled a refreshed identity as Runwal Realty, signalling a renewed commitment to crafting spaces that stand the test of time. With this refresh, the brand unveils its new philosophy: “Building for Generations to Come” and welcomes Bollywood star and global fashion icon Sonam Kapoor as its brand ambassador. This evolved identity reflects Runwal Realty’s commitment to creating not just homes, but heirlooms—crafted through visionary design, meticulous planning, global design expertise and an unwavering focus on quality. With the customer at its core, each de..

Next Story
Infrastructure Urban

Emerging Trends in Infrastructure and Transport 2025: KPMG

KPMG’s latest report, The Great Reset: Emerging Trends in Infrastructure and Transport 2025 edition, sheds light on the profound changes transforming the global infrastructure landscape. As industries adapt to the challenges posed by climate change, economic pressures, and technological advancements, the report identifies key trends and provides actionable insights for leaders in infrastructure and transport sectors. “In today’s interconnected world, the lack of standardized supply chain practices is not just an operational challenge—it’s an environmental and economic one. We’..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?