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BENGALURU : Global asset management firm Blackstone Group Lp on Monday sold its entire 9.2% stake in Mindspace REIT to Abu Dhabi Investment Authority (ADIA) for $235 million, according to two people familiar with the development.

Mindspace REIT is backed by Mumbai-based real estate firm K Raheja Corp and Blackstone. Blackstone had acquired a 15% stake minority stake in a clutch of office projects of K Raheja Corp. in March 2017. It sold a part of its stake for $100 million at the IPO and retained 9.2% in the REIT (Real Estate Investment Trust).

Blackstone, currently the largest commercial office space owner in the country, on Monday sold its remaining 9.2% stake at 320 per unit, which is a 16% premium over the August 2020 price of 275 per unit during Mindspace’s public listing.

The deal also marks the debut investment for ADIA in the domestic REIT space.

In August 2020, Mindspace Business Parks was listed as India’s second real estate investment trust or REIT, after the Embassy REIT listing in 2019. 

The $600 million Mindspace IPO was listed on the stock exchange in 2020, soon after the country came out of an unprecedented lockdown owing to the pandemic, and was well-received with broad-based interest from both international and domestic investors. The REIT comprises ten Grade-A office assets totaling 31 million sq ft located across key office markets.

“Blackstone has emerged as the most aggressive institutional investor in India with overall assets under management estimated to be $60 billion across various sectors, making it one of the top 10 business groups in the country. 

Real estate accounts for nearly $20 billion of this market value across its 42 investments. It is the largest office and retail assets owner in India with an office portfolio of 135 million sq ft and over 16 million sq ft of retail space and 40 million sq ft of logistics space," said one of the persons mentioned above, who didn’t wish to be named.

Spokespersons from Blackstone and K Raheja Corp declined to comment. Mint couldn’t immediately reach out to ADIA.

Last year, Blackstone trimmed its stake in the Embassy Office Parks REIT through block deals in the open market. It raised $275 million by selling around 6% stake in the listed entity. Subsequently, Blackstone’s holding in the REIT to 32% from 38%.

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