Blackstone launches block deal in Embassy REIT to raise $250 million

Global private equity fund manager Blackstone has launched a block deal to raise between $250 million and $257 million in Embassy Office Parks REIT (real estate investment trust). It is the country's first listed REIT, said sources in the know.

The secondary placement of units in a price band of Rs 340-350 apiece is at a discount of 3.7-6.4 per cent to Tuesday’s closing price of Rs 363.55 on the National Stock Exchange.

"Since markets have picked up, Blackstone thought it prudent to exit,” said a source.

Blackstone declined to comment. The world's biggest alternative assets manager holds 55 per cent stake in the REIT.

Embassy Office Parks REIT was sponsored by Bengaluru-based Embassy Group and Blackstone.

Embassy Office Parks REIT came out with a public issue and debuted on the stock markets in April 2019.

The REIT owns some prime properties in Bengaluru and Mumbai. It has properties to the tune of 33 million square feet.

REITs are like mutual funds which can be listed and traded on the stock markets. They are tax efficient since they distribute a majority of their income as dividend.

Blackstone is the largest office owner in the country, with real estate assets worth $20 billion in the country. It has joint ventures with Panchshil Realty, K Raheja Corp, Salarpuria Sattva, among others.