Home / Companies / News /  Kotak’s realty fund invests Rs1,600 cr in Embassy REIT as Blackstone pares stake

Mumbai: Kotak Investment Advisors Ltd and Abu Dhabi Investment Authority sponsored real estate fund has picked up stake worth 1,600 crore in Embassy Office Parks REIT as the platform’s sponsor Blackstone pared its holding in the REIT through a block trade on Tuesday, said a person aware of the development.

Blackstone planned to sell as much as 77 million units of the REIT, representing around 8.12% stake in the commercial office platform, at a floor price of Rs345 apiece, as per deal terms seen by Mint. Investment banks Bank of America, IIFL, Morgan Stanley acted as the brokers to the block trade.

At the floor price, the stake sale will fetch Blackstone Rs2,660 crore or $325 million.

As of 30 June, Blackstone held 31.71% of the units in the REIT.

The investment in Embassy REIT comes from Kotak Investment Advisors Ltd’s (KIAL) 12th real estate fund to invest in commercial office properties. In June, KIAL said that it has formed a $590 million platform with a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) for this Fund, which will be domiciled in Gujarat’s GIFT City.

At 12.30 PM, shares of Embassy REIT were trading at Rs348.25 apiece, down 0.9% on the BSE.


Swaraj Singh Dhanjal

" Based in Mumbai, Swaraj Singh Dhanjal is responsible for Mint’s corporate news coverage. For the past eight years he has been writing on the biggest deals in private equity, venture capital, IPO market and corporate mergers and acquisitions. An engineer and an MBA, he started his journalism career in 2014 with Mint. "
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