Blackstone buys remaining Indiabulls Real Estate’s office assets for $614m

Blackstone. Photo: Bloomberg

Global private equity major Blackstone Group, which had acquired 50 per cent stake in Indiabulls Real Estate’s commercial portfolio last year, has signed a term sheet to acquire the balance stake in the assets for about $614 million (over Rs 4,420 crore).

The stake sale is part of Indiabulls’ efforts to achieve zero net debt in the current financial year, the Indian company said in a regulatory filing on Tuesday.

In March last year, Blackstone had acquired 50 per cent stake in Indiabulls’ flagship office properties in central Mumbai—One Indiabulls Centre and Indiabulls Finance Centre—for $730 million.

As part of the latest transaction, Blackstone is buying Indiabulls Real Estate’s stake in existing joint ventures, namely Indiabulls Properties P Ltd and Indiabulls Real Estate Co P Ltd, which own commercial assets at Lower Parel Mumbai. The US private equity firm is also buying the Indian company’s stake in Yashita Buildcon Ltd and Ashkit Properties Ltd, which own commercial assets in Gurugram.

Blackstone will also acquire Indiabulls Real Estate’s commercial assets/development at Worli in Mumbai, New Delhi and Gurugram, the filings added.

The proposed divestment is subject to execution of agreements and customary closing conditions, and is expected to be completed soon, Indiabulls Real Estate said.

Indiabulls Real Estate is one of the largest real estate companies with a gross development value of Rs 32,189 crore, and net worth of Rs 7,090 crore as of March 31, 2018. It has 15 on-going projects with a total saleable area of 33.91 million sq. ft. under its wing, according to the company’s website.

Further, it has commercial development with a leasable area of 3.15 million sq.ft. under construction. Additionally, the company has a land bank of 1,046 acres and also possesses 2,588 acres of SEZ land at Nasik, Maharashtra.

Meanwhile, Blackstone has also been aggressively increasing its hold in the Indian real estate market. The firm’s property investments in the country are set to cross the $6-billion mark this year, Mint reported this week.

Last week, Blackstone and developer partner Salarpuria Sattva bought the 100-acre Global Village Technology Park in Bengaluru for about $390 million from Coffee Day Enterprises Ltd. Of this, Blackstone’s share of investment is around $275 million. In June, the PE giant acquired a marquee office building in Mumbai’s Bandra Kurla Complex (BKC) for Rs2,500 crore.