Indiabulls Real Estate signs deal with Blackstone to divest 50% stake in subsidiaries IPPL and IRECPL at an aggregate enterprise value of Rs9,500 crore
Bengaluru: Indiabulls Real Estate Ltd (IBREL) has executed definitive transaction documents with global private equity investor Blackstone Group LP to divest 50% stake in subsidiaries Indiabulls Properties Private Ltd and Indiabulls Real Estate Co. Pvt. Ltd at an aggregate enterprise value of $1.46 billion or Rs9,500 crore, the company informed the BSE late Friday.
The two subsidiaries hold premium commercial office assets, Indiabulls Finance Centre and One Indiabulls Centre, in central Mumbai.
The transaction is expected to be concluded by March end.
“Substantial part of sale proceeds would be utilized towards repayment of existing debt of the company and its subsidiaries, and for achieving sustainable long term growth and for further strengthening of their on-going businesses," Indiabulls said.
Once this transaction is concluded, the company will cease its sole control over the two subsidiaries IPPL and IRECPL, Indiabulls added.
Mint reported on 22 March that Indiabulls is also planning to monetise its residential and commercial properties in Chennai, the latter being a non-core market for the Mumbai-based developer.
On Friday, the company said that the consent of the board is being sought for the sale of Chennai assets, under its subsidiary India Land and Properties Ltd. Blackstone’s real estate arm has committed around $4.1 billion across 27 investments in India, making it possibly the largest owner of commercial office assets in the country.
Earlier this week, Mint reported that Blackstone is set to buy an 80% stake in Nitesh Hub, a shopping mall in Pune’s Koregaon Park from real estate firm Nitesh Estates Ltd for around Rs310 crore.
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