Taking another step to fully acquire Indiabulls Real Estate's commercial properties, the Blackstone Group has signed a term sheet to take over the remaining 50 per cent stake. The total worth of Indiabulls Real Estate properties is around Rs 4,420 crore, the Economic Times reported.
Last year in March, Blackstone had signed a similar deal for 50 per cent of the portfolio for around Rs 4,750 crore that was one of the country's biggest-ever deal in real estate. Blackstone will secure a 5-million-sq-ft portfolio including two marquee properties, One Indiabulls and Indiabulls Finance Centre in Mumbai's Lower Parel and Prabhadevi areas and one in Gurugram. The deal will consolidate its position as the country's largest commercial property owner.
Without revealing the value of the deal, Indiabulls confirmed the signing the term sheet with Blackstone for the commercial portfolio. The portfolio would include rights to assets at BLU in Mumbai's Worli area and Sectors 104 and 106 in Gurugram.
Notably, the deal is Indiabulls group's plans to completely exit the real estate and focus on financial services where the group has planned to merge to merge its business with Lakshmi Vilas Bank. The proceeds from the deal will be used to repay all the outstanding debt. Company's total debt in its real estate business stood at Rs 4,590 crore.
One of the persons privy to the development, "Apart from these assets, Blackstone and Indiabulls are in advanced talks for one more asset in the National Capital Region and this deal is also expected to be concluded over the next few weeks. This transaction is estimated to be valued at around Rs 700 crore." Last year, Blackstone had fully acquired Indiabull's properties in Chennai in a separate deal for an amount of Rs 850 crore.
The market responded positively to the deal as the shares of Indiabulls Real Estate soared 3 per cent in Wednesday's trade after Blackstone Group signed a term sheet. Moreover, Blackstone is also eyeing to add the assets bought from Indiabulls Real Estate to the portfolio of Embassy Office Parks Real Estate Investment Trust, which is a joint venture with Embassy group which recently announced to build co-living facilities in the country of more than 20,000 beds