Blackstone has a proven track record of swiftly monetizing its real estate assets in India. In 2019, they launched Embassy Office Parks REIT, and a year later, they listed Mindspace Business Parks REIT in which they held a small stake that was subsequently sold off. The firm has also been preparing its mall portfolio for REIT conversion, successfully listing it this year.
Image-: The Hindu Business Line.
Blackstone, the private equity firm and asset manager, is reportedly in the final stages of planning to launch an initial public offering (IPO) for its real estate investment trust (REIT) in India. The REIT will primarily consist of its office portfolio and is anticipated to raise between $800 million and $1 billion. This IPO is expected to be the largest in Asia in terms of square footage.
The REIT, which is set to be listed early next year, will encompass a substantial 45 million square feet of assets. These assets include Nucleus Office Parks, a wholly-owned subsidiary of Blackstone, as well as assets from two joint ventures with Panchshil Realty and Salarpuria Sattva group, based in Pune and Bengaluru respectively. Nucleus Office Parks alone boasts more than 20 million square feet of commercial assets located in prime areas like Mumbai, Gurugram, Chennai, Bengaluru, and Ahmedabad. The joint ventures add another 22-25 million square feet of managed office spaces.
A knowledgeable source revealed that the office asset portfolio held by Blackstone is of exceptional quality and could potentially command a premium of 10-15% compared to the valuation of assets under the Embassy Group. The diversity of the portfolio, combined with its advantageous locations and high occupancy rates, contributes to its appeal. The office spaces are well-leased, making them a desirable investment.
Blackstone has been actively investing in various projects developed by the Salarpuria Sattva Group, including Knowledge City Office Park, Knowledge Park, and Knowledge Capital. Additionally, they acquired Global Village Tech Park from Coffee Day Enterprises in 2020. In their joint venture with Panchshil, Blackstone holds a majority stake in Express Towers located in Mumbai’s Nariman Point. They have also made investments in several projects in Pune. This forthcoming REIT will be Blackstone’s second majority-sponsored REIT in India, following the recent listing of Nexus Select Trust.
Blackstone has a proven track record of swiftly monetizing its real estate assets in India. In 2019, they launched Embassy Office Parks REIT, and a year later, they listed Mindspace Business Parks REIT in which they held a small stake that was subsequently sold off. The firm has also been preparing its mall portfolio for REIT conversion, successfully listing it this year. As stated on Blackstone’s website, they currently own more than 125 million square feet of Grade A office space in India, spread across major office markets and IT hubs.
