Blackstone group has stepped closer for signing the deal of $250-300 million dollar deal for 15% in K Raheja Corp’s 20-million sq ft income-producing office portfolio. Blackstone is the biggest owner of office properties with properties of over 70 million sq ft. It has invested over $3 billion in office properties and malls since 2006. It has invested similar amount in private equity also in the country. But globally, a third of its assets are in real estate. It manages assets worth $367 billion of which $102 billion in real estate.
India’s second largest developer of commercial parks, K Raheja is seen as a prominent candidate for listing its real estate investment trust (REIT) in India. The Blackstone Groups idea is to when Raheja comes out with a REIT one or two years from now, they can exit and make descent returns. Whatever valuation they have come in now, they can look for much superior valuation later.
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As reported by Economics Times, The transaction between the companies is fast progressing and almost towards closure. An application with the proposed deal has now been filed with anti-trust watchdog Competition Commission of India.
Apart from 20 million sq ft ready and leased commercial assets, Blackstone Group is expected add more commercial developments both under construction and being planned in this portfolio. Currently, K Raheja Corp has 16 million sq ft of under construction and planned commercial projects.
K Raheja Corp has a big portfolio of completely leased 20 million sq ft office spaces across Mumbai, Navi Mumbai, Hyderabad and Pune. It has so far developed 7 million sq ft space in all including IT parks, commercial, residential and retail projects in this project spread over 110 acres in Malad. Tenants at its IT parks are there include Accenture, Cognizant, L&T Infotech, Syntel, Capgemini and Wipro.
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Blackstone is the biggest owner of office properties with properties of over 70 million sq ft. Blackstone established its office in India, in August 2005. Blackstone Group has invested over $3 billion in office properties and malls since 2006. Globally, a third of its assets are in real estate. It manages assets worth $367 billion of which $102 billion in real estate. Blackstone has the same intent in the ongoing deal talks between DLF and the former wherein DLF promoters are selling 40 per cent stake in their rental arm for about $2 billion. Embassy Office Parks, the JV between Blackstone and Bengaluru-based Embassy Group, has a portfolio of 35 million sq ft and is valued at $ 3 billion. Blackstone’s other joint venture with Panchshil has a portfolio of 11 million sq ft which is valued at over $1 billion.
