Blackstone Group, the world’s largest private equity firm, will soon be able to buy a 49% stake in Indiabulls Real Estate’s office rental business for $ 60–$ 65 million. In the deal, the value of the entire portfolio is being estimated at around $ 1.2 billion. Sources said that talks for this deal are in the final stages.
The deal will include one of India’s Indiabulls Centers and Indiabulls Finance Center in Lower Parel, Mumbai, along with famous buildings such as One 09 Building in Gurgaon and Indiabulls Park in Chennai.
In the last few years, foreign investors have increased interest in selected commercial properties in India and this deal is also a link to it. Blackstone has a good portfolio of commercial real estate properties in India. Sources said that before listing the real estate investment trust, it wants to add more properties to its portfolio. Blackstone had bought Express Towers at Nariman Point in Mumbai in 2014. Blackstone refused to comment on the deal with Indiabulls Real Estate. Indiabulls Real Estate did not respond to the queries raised.
One source said that negotiations on the deal are in the final stages and it can be a defining agreement signed before March 31. Last year, DLF, the country’s largest real estate company, sold 33.34% stake in its commercial rental unit DLF Cyber City developers for Rs 8,900 Crore. DLF Cyber City has rental assets of 2.69 million square feet, from which the company gets a rental income of more than Rs 2,500 Crore annually.
The annual rental income of Indiabulls Real Estate was Rs 720 Crore at the end of 2017. The company has clients such as Morgan & Stanley, HSBC, WPP Group, and Aditya Birla Financial Services. It is currently making four more office projects. After completion of this, the company’s annual rental income is expected to reach Rs 1,357 Crore.
Besides Blackstone, there is also a 247 park building spread over 1.1 million square feet in addition to the express tower, which was bought by Hindustan Construction Company (HCC) for Rs 1,050 Crore in 2016. However, there was a missed opportunity to buy an office portfolio of Hiranandani, involved in Blackstone Mumbai’s major realty companies. The deal was done by Global Asset Management Company Brookfield in billion dollars. Indiabulls is the country’s third largest real estate company in terms of net worth and assets.
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