Private equity giant Blackstone India’s REIT (Real Estate Investment Trust) listing is likely to happen in mid-2017, ahead of which the company may undertake a corporate restructuring, demarcating its office spaces from the retail assets, geography-wise.
Blackstone is planning to list two separate REITs for its office assets: one with Pune-based Panchshil Realty, and the other with Bengaluru-based Embassy Property Developments.
Blackstone is currently consolidating its assets in the West and North of India to bring out its REIT with Panchshil. The REIT may have an estimated 25-30 million sq ft office space under this ambit.
In South India, the company may consolidate its assets under Embassy with about 25 million sq ft under it.
Sources said the REIT with Embassy may be the first to hit the market, having sought capital market regulator SEBI’s approval in October last year.
Since 2006, Blackstone Real Estate has committed $2.8 billion in India, across 20 investments.
DLF is the second-largest office space owner in the country after Blackstone. Last month, DLF sold its rental arm business to Singapore-based PE firm GIC for close to ₹12,000 crore, narrowly outbidding Blackstone.
Globally, Blackstone LP has assets under management to the tune of $101.9 billion in real estate. Last year, Blackstone raised $5 billion for its Asia-focussed real estate fund, of which $1.5 billion has been pumped into the Indian market, sources said.
While Blackstone has been focussing on office assets with close to 30 million sq feet, it has also invested in malls and housing projects. Last year, its subsidiary, Nexus Malls, had bought about 1 million sq. ft of retail space from L&T Realty Ltd for ₹1,450 crore.