Indiabulls Real Estate Ltd (IBREL) on Friday announced that it is selling commercial assets at Ambattur, Chennai, to global private equity investor Blackstone Group for nearly $124 million (Rs 850 crore).
The company’s move is aimed at strengthening on-going businesses in its core markets.
“The company’s board constituted committee has today authorized execution of definitive transaction document(s) with the entities controlled by the Blackstone Group L.P., which is a globally renowned real estate private equity investor, by which company will divest its 100% stake in the business of commercial assets at Ambattur, Chennai, being a non-core real estate business operations for the company…,” said the company in a BSE filing.
“The deal will fetch a “gross value of approximately Rs850 crore,” it added.
Subject to satisfaction of closing conditions, the transaction is to be completed in tranches by September 30, 2019.
In May, IBREL had sold off its 1.9 million sq. ft office park, One Indiabulls Park, in Chennai to Blackstone in an outright deal for Rs 900 crore, as part of its plan to exit the southern city, a non-core market for the company’s business. It had also sold its residential township project, Indiabulls Greens, in Chennai to Bengaluru-based Ozone Group for Rs 285 crore.
In March, the company had executed definitive transaction documents with Blackstone to divest 50 per cent stake in subsidiaries Indiabulls Properties Pvt. Ltd and Indiabulls Real Estate Co. Pvt. Ltd at an aggregate enterprise value of $1.46 billion or Rs9,500 crore.