Real Estate

Blackstone to get full control of Indiabulls’ commercial office space post Rs 2,700-cr investment

Our Bureau Mumbai | Updated on September 27, 2019 Published on September 27, 2019

Blackstone Group is set to take full control over Indiabulls Real Estate's commercial office portfolio after Indiabulls on Thursday sold its remaining stake in some of its office assets in Gurugram and central Mumbai to Blackstone for Rs 2,717 crore.

"Indiabulls Real Estate Ltdhas divested its remaining stake in existing JV Cos namely Yashita Buildcon Ltd and Ashkit Properties Ltd (both owning assets at Udyog Vihar, Gurugram) and its certain subsidiaries in Indiabulls Properties Pvt Ltd and Indiabulls Real Estate Company Pvt Ltd (both owning assets at Lower Parel, Mumbai) to the entities controlled by the Blackstone Group Inc. (“Blackstone”)," Indiabulls said in a statement. The deal was valued at Rs 2,717 crore, the company said.

Blackstone made its first investment in Indiabulls Real Estate last year by buying 50 per cent stake in IBREL's office projects in Mumbai for Rs 4,750 crore and later taking over IBREL's office park in Chennai for Rs 900 crore.

The recent transactions are part of Indiabulls Group’s larger plan to exit the real estate business and the proposed merger with Lakshmi Vilas Bank.

Indiabulls said the deal has generated enough cash for the company to help it turn into a zeo net debt in the current financial year.

The real estate firm is also in the process of finalisation of definite transaction document(s) with Blackstone for proposed divestment of the company’s direct or indirect stake in commercial assets/development at Worli Mumbai, rights/stake in K.G. Marg, New Delhi and Sector 104 & Sector 106, Gurugram, Indiabulls said.

IBREL also sold 14 per cent stake to Embassy Group for around Rs 950 crore recently

Published on September 27, 2019
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