Blackstone to exit embassy office parks in biggest India block sale in FY24

Ashutosh Joshi

Affiliates of Blackstone Inc. are seeking to exit India’s Embassy Office Parks REIT in an $833 million deal that will be the country’s biggest block trade this year as its booming markets allow some early stage investors to sell their investments.
 

Various special purpose vehicles, sponsored by Blackstone, have offered to sell up to 223.6 million units, or a 23.6% stake in the company, India’s first listed REIT, according to terms of the deal obtained by Bloomberg News. The potential transaction will be carried out at a floor price of Rs 310 apiece ($3.7), a more than 7% discount to Tuesday’s close in Mumbai.
 

India has emerged as a key market for primary as well as secondary equity sales this year. Equities in India have offered sustained returns to investors, backed by the country’s appeal as the world’s fastest-growing major economy, while global funds have turned pessimistic on China amid growing worries over regulatory and geopolitical issues.
 

Canada Pension Plan Investment Board’s sale of a $743 million stake in Kotak Mahindra Bank Ltd. and Mankind Pharma Ltd.’s holders’ sale worth $695 million in the generic drug maker are among the biggest block trades this year.

Blackstone has been lowering its holding in Embassy Office Parks REIT, which debuted in April 2019. IIFL Securities Ltd. and Kotak Securities Ltd. are managing the deal that will take place via block trades executed on local exchanges on Wednesday, the terms showed.