Blackstone all set to buy Adani Realty's BKC office tower for Rs 2,000 cr

Adani Realty's commercial project in MRealty'sbusy business district, the Bandra-Realty'smplex, comprises an offMumbai'sr of around 800,000 square feet

The US-based private equity major Blackstone Group is currently engaged in advanced negotiations to acquire Inspire BKC, a commercial real estate project developed by Adani Realty, the Economic Times (ET) reported, citing sources.

Blackstone is expected to invest between Rs 1,800 crore and Rs 2,000 crore in this acquisition, the report claimed. The project is situated on the periphery of Mumbai's vibrant business hub, the Bandra-Kurla Complex (BKC), and comprises a tower spanning 800,000 square feet.

The report added that Adani Group's real estate division has been exploring options to monetise this 10-storey office tower for several years. Previous discussions have taken place with both international and domestic investors, including Brookfield India and Shapoorji Pallonji Investment Advisors.

Blackstone Group had previously expressed interest in purchasing the property. However, ET quoted sources as saying discussions were halted due to the onset of the Covid-19 pandemic in 2020 and uncertainties regarding office space demand.

The office tower's current key tenants include Novartis, Reliance Nippon Life Insurance, Ascendas-Firstspace Development Management, and MUFG Bank.

Recently, Bhive Workspace secured over 62,000 square feet of office space across seven units in Inspire BKC through a long-term lease agreement lasting five years, the report said. The lease terms stipulate a monthly rental rate of Rs 205 per square foot, with a 15 per cent escalation clause after three years.

Blackstone's previous purchase in One BKC, Mumbai

In a previous transaction, Blackstone acquired approximately 650,000 square feet of space in the One BKC building within Mumbai's Bandra-Kurla Complex for Rs 2,600 crore.

This acquisition encompassed the entire A Wing and a portion of B Wing, totalling 1.5 million square feet. The building's owner, Radius Developers, had collateralised the property with Indiabulls Housing Finance.

Blackstone Group's investment plans in India

In March this year, reports emerged indicating Blackstone Inc.'s intention to add $25 billion worth of Indian private equity assets over the next five years, underscoring the country's growing appeal to global investors.

The New York-based firm plans to augment its investment team in India by recruiting an additional 20 professionals and doubling its office space in Nariman Point, downtown Mumbai, according to Amit Dixit, head of private equity in Asia for Blackstone.

Dixit outlined Blackstone's strategic focus on building a portfolio around three core themes: infrastructure (such as data centres), energy transition (including renewables), and critical transportation sectors (like airports, roads, and ports).

Additionally, Blackstone aims to invest in export-oriented industries and electronic manufacturing, which represent emerging sectors within the Indian economy.