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Blackstone set to buy 1 million sq ft office space from L&T Realty

In 2015, L&T Realty sold its 1.8 million sq ft commercial project in Chandigarh

Raghavendra Kamath  |  Mumbai 

Blackstone set to buy 1 million sq ft office space from L&T Realty

US-based private equity giant is in the final stage of talks with to buy 1 million sq ft of office property in Seawoods in
 
Market sources said the deal could be valued at Rs 900-1,000 crore, given rents in the area. Sources in said the company was expecting Rs 1,400 crore.
 
The property is part of a 40 acre integrated transit-oriented development at Seawoods railway station. Earlier, bought a 1 million sq ft mall for Rs 1,400 crore from in the same project. recently inaugurated the
 
has 1.5 million sq ft of in the project and has sold 300,000-400,000 sq ft to various buyers.
 
“Commercial is not core for T&T Realty, which is focusing on residential projects. That is why it is selling such properties,” a source said.
 
In 2015, sold its 1.8 million sq ft commercial project in Chandigarh, including Elante Mall, a Hyatt hotel and offices, to the Carnival group for Rs 1,785 crore. That was the largest commercial deal of that year.
 
Chief Executive Officer Srikant Joshi declined to comment on the deal with A spokesperson for said, “As a matter policy, does not comment on media/market speculations.”
 
Sources said was also in talks with and Brookfield to sell office assets in Powai in Mumbai’s eastern suburbs, but this could not be independently verified. has developed 1.5 million s q ft in Powai and has the potential to develop another 3-4 million sq ft.
 
is the largest owner of in the country at 70 million sq ft. It has invested over $3 billion in Indian since 2011. Two of its joint ventures, one with the Embassy group in Bengaluru and and another with Panchshil of Pune, are planning to float investment trusts, or

Early this year, bought a 15 per cent stake in the rental arm of the K Raheja Corp for Rs 1,700 crore. It was also in the reckoning to buy a stake in DLF’s subsidiary, DLF Cybercity, which was sold to Singapore's GIC.
 
is in the final stages of negotiations to buy commercial property from the Carnival group in Chandigarh. The deal is expected to be worth Rs 2,200 crore.
 
Ramesh Nair, country head at JLL, said had been acquiring Grade-A lease-earning office properties over the past few yeaRs and the strategy had paid off. "This is in line with their Reit listings plan. Office property prices have not crossed their previous peak. All quality office properties are set to gain considerably," he added.
 
Ashok Kumar, managing director at commercial realty services firm Gennext Partners, said was acquiring across the globe to generate attractive returns for investoRs over the long term.
 
is poised to become the second largest owner of malls in the country after it bought two malls in Indore in a deal estimated at Rs 1,200 crore. It has 3.7 million sq ft of mall space and has set up a company, Nexus Malls, to manage and operate these.
 

First Published: Fri, July 14 2017. 00:01 IST