The international private equity firm Blackstone Group is set to divest its complete stake in Embassy Office Parks REIT through a substantial block deal scheduled for Wednesday, as reported by various news outlets.
The proposed sale encompasses Blackstone's entire 23.6% stake and is estimated to be valued at around $830 million.
The agreement signifies Blackstone's withdrawal from India's inaugural publicly traded Real Estate Investment Trust (REIT). The U.S.-based investment manager has gradually reduced its stake in Indian REITs over time. In 2022, Blackstone divested its complete holding in Mindspace Business Parks REIT (MINS.NS) in India for a total of $235 million.
The minimum price for the share sale has been established at ₹310 per share, with Kotak Mahindra Capital and IIFL Capital serving as advisors for this substantial transaction. This floor price represents a nearly 8% discount compared to the current market price. On the BSE, units of Embassy Parks REIT concluded 3.4% higher, reaching ₹335.54.
Embassy Office Parks REIT, co-sponsored by the Blackstone Group and Embassy Group, made history as India's inaugural real estate investment trust (REIT) when it was listed in April 2019.
If the transaction concludes on Wednesday, it will mark the fourth occasion where the global private equity firm trims its exposure to the REIT through block deals. In June 2020, Blackstone garnered over $300 million by divesting an 8.7% stake in the listed entity. Later, in December 2020, Blackstone and Embassy divested Embassy TechVillage, an integrated office park in Bengaluru, to Embassy Office Parks REIT.
Additionally, a fundraising initiative by the REIT through a Qualified Institutional Placement (QIP) had reduced Blackstone's holding to 38%, down from over 46%. In September of the previous year, Blackstone also sold a partial stake in the listed entity through the open market.
Embassy REIT owns and manages a portfolio featuring eight infrastructure-like office parks and four city-center office buildings in key Indian office markets such as Bangalore, Mumbai, Pune, and the National Capital Region. With completed operating areas, the portfolio boasts over 190 global companies as occupants.
