Blackstone sold approximately 2,025 crore ($ 275 million) shares in Embassy Office Parks REIT, representing 5.7% of the company’s market value, a person familiar with the report said. case.
The private equity firm (PE) sold 57 million shares through 14 affiliates at an average price of 355.2.
This brings Blackstone’s stake in Embassy Office Parks down to around 32%, down from 38% before this deal. Blackstone’s exposure in Embassy REIT prior to this transaction was $ 1.7 billion.
Blackstone declined to comment on the transaction.
The exit was an attempt to provide liquidity to Blackstone’s limited partners, or investors in its fund, and the EP remains Embassy’s largest shareholder, the person cited above said on condition of anonymity.
Capital Group, Dutch Asset Manager, Nordea Bank, ICICI Prudential Mutual Fund and HDFC Life were among the buyers.
Embassy REIT owns and operates a 42.4 million square foot portfolio in the Bengaluru, Mumbai, Pune and National Capital Region office markets, the company said.
Embassy Office Parks REIT received nearly 100% of its office rent for the fiscal year ended March 31, 2021, despite the coronavirus outbreak, Chairman Jitendra Virwani said in the company’s FY21 annual report filed in June.
The company announced a 36% increase in net operating income to 621.3 crore in FY21, from 459.1 crore in FY20.
This is Blackstone’s third partial exit from Embassy Office Parks after Blackstone became the first real estate investment trust to go public in 2019. It sold shares worth 2,275 crore or 300 million dollars as of June 2020.
In December of last year, Blackstone and Embassy Group sold TechVillage to Embassy REIT and withdrew additional funds. Blackstone’s share of the silver is not known for this deal. However, at the time, Embassy raised $ 501 million by selling shares to institutional investors, which diluted Blackstone’s stake to 38% from 46%.
Separately, it would also be Blackstone’s fifth exit event this year in India after its partial exits from sales of Sona Comstar and TaskUS shares. Three Blackstone funds also renewed their stakes in Mphasis Ltd earlier this year, which provided its first limited partners with a liquidity option. Blackstone also sold its stake in Aakash Education Services in Byju for $ 2 billion earlier this year.
In investments, the PE fund acquired companies such as Simplilearn and acquired a stake in Byju’s following the Aakash transaction.
In addition, Blackstone is also in the process of acquiring a 74% stake in wealth manager Ask Group. Blackstone’s real estate investments in the country stand at $ 12 billion to date, but its assets under management in India exceed $ 50 billion.