CapitaLand pulls out of talks with Blackstone for Pune infotech parks

Singapore-based developer-cum-investor CapitaLand has pulled out of talks to buy infotech (IT) parks of US-based Blackstone in Pune, sources in the know said.

Though the reason for CapitaLand pulling out of the project is not known, the size of the  deal between the two was expected to be around Rs 22 billion, sources said. “Earlier, CapitaLand was the front runner for the deal and doing due diligence but now it is not in the race,” said a source.

Now, another Singapore-based investor Xander has begun the talks with Blackstone, sources said.

Blackstone is selling its BlueRidge special economic zone (SEZ) and another SEZ at Hinjewadi in Pune, which are not part of its joint ventures (JV). Both of its JVs with Embassy group of Bengaluru and Panchshil Realty of Pune are gearing up to launch Real Estate investment trusts in the country.

Blackstone bought 1.5-million-square-feet SEZ from private equity fund manager IDFC Alternatives and another IT SEZ that it bought from DLF in Pune. Blackstone is also selling its 1.3-million-square-feet Galaxy IT park in Noida.

Blackstone has hired Morgan Stanley to sell the properties.

Blackstone’s recent moves

• Signs a deal with Indiabulls to buy a property in Chennai for Rs 8.5 bn
   
• Signs a deal with Indiabulls to buy a 50 per cent stake in properties in Mumbai - Indiabulls Finance Centre and One Indiabulls Centre — for Rs 47.50 billion
   
• Raises $9.4 billion in funds — the largest-ever fund dedicated to real estate investments in Asia as well as its first private equity fund for the region
   
• Has built a portfolio of 78 million sq ft with its partners

Xander currently owns six million square feet of office assets in India, with operating assets across multiple cities including Bengaluru, Chennai, and Delhi. It also has a mall company called Virtuous Retail South Asia in which Dutch pension fund APG has a stake.

Blackstone is aggressively buying office assets and malls in the last couple of years.

Last week, Blackstone signed a deal with Indiabulls Real Estate to buy a commercial property in Chennai for Rs 8.5 billion.

In March, Indiabulls signed a deal with Blackstone to sell 50 per cent stake in two commercial properties in Mumbai — Indiabulls Finance Centre and One Indiabulls Centre — to Blackstone for Rs 47.50 billion.

Blackstone has invested over $5 billion across 30 real estate investments, of which $3.7 billion is in office space. It has built a portfolio of 78 million square feet with its partners.

In June, Blackstone Group raised about $9.4 billion for two new funds — the largest-ever fund dedicated to real estate investments in Asia as well as its first private equity fund for the region.