Blackstone reduces its stake in Embassy Office Parks REIT
Blackstone Group, a major private equity player, sold around 8% of Embassy Office Parks REIT, India’s premier real estate investment authority (REIT), through open market block sales, for $326 million or Rs 2,650 crore.
Through its 12th real estate fund, which recently raised more than $590 million and of which the Abu Dhabi Investment Authority (ADIA) sovereign wealth fund is a leading partner, Kotak Realty Fund has purchased units worth $200 million or Rs 1,600 crore.
In the early hours of Tuesday’s trading session, deals worth $125 million in units were completed by ICICI Prudential, HDFC Life Insurance, Kotak Mutual Fund and other investors.
Through these transactions, 77 million shares of Embassy Office Parks REIT were sold at a price of Rs 345 each.
Kotak Investment Advisors partnered with a subsidiary ADIA earlier this year to create this $590 million real estate investment platform, or around Rs 4,600 crore.
The fund, which will be headquartered in GIFT City in Gujarat, will invest in office properties across India focusing on the country’s six major real estate markets: Mumbai, Bangalore, Delhi-NCR, Pune, Hyderabad and Chennai. .
With the conclusion of its 12th real estate fund, Kotak Investment Advisors has raised, managed or provided advisory services for more than $2.8 billion through its series of real estate funds.
Since the Embassy Office Parks REIT IPO in April 2019, Blackstone has reduced its ownership three times.
The international private equity fund had also reduced its stake in Embassy Office Parks REIT through block transactions from September 2021.
The institutional investor then sold a roughly 6% stake to raise $275 million. As a result of the deal, Blackstone’s 38% stake in the REIT was reduced to 32%.
Blackstone had $1.7 billion exposure to Embassy Office Parks REIT prior to the 2021 share sale. At that time, Blackstone sold shares for Rs355.20 per unit.
With approximately $60 billion in assets under management across numerous sectors, Blackstone has become the most aggressive institutional investor in India, ranking among the top 10 business organizations in the country. More than 40 different investments total nearly $22 billion in real estate market value.
With a portfolio of 38 properties totaling almost 100 million square feet in offices across 7 cities, Blackstone is the largest office owner in India. Of this number, offices totaling approximately 13 million square feet are under construction and 16 million square feet will be developed in the future.
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