Indiabulls Real Estate to sell office space to Blackstone for Rs 8.5 bn

US-based private equity fund manager Blackstone will buy a commercial property in Chennai from Indiabulls Real Estate for Rs 8.5 billion.
 
The transaction is part of Indiabulls Real Estate’s strategy to reorganise commercial leasing business for strengthening its on-going businesses, in its core markets, the company said on Friday. The transaction is expected to be completed in tranches by September 30, 2019, a PTI report said.
 
The property, One Indiabulls Park, is located in Ambattur area of Chennai and covers an area of a 1.9 million sq ft and is rented out to companies such as Royal Bank of Scotland, Vodafone, Britannia Industries and BSNL.

 
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.
 
It had also agreed to sell its commercial and residential projects in Chennai at the time in a separate transaction.
 
Along with its partners, Blackstone is the largest office owners in the country.

 
Last year, it bought 15 per cent stake in rental arm of K Raheja Corp. It also picked up a stake in First International Finance Centre at the Bandra Kurla Complex in Mumbai.
 
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 sq ft 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.
 
It formed joint ventures with Embassy group for office properties in South and Panchshil Realty for properties in Western India. Blackstone also picked up 15 per cent stake in K Raheja Corp.