Embassy Blackstone looks to buy promoter stake in Indiabulls Real Estate

Bengaluru-based property developer Embassy and US-based Blackstone are looking to buy Indiabulls Real Estate (IBREL) promoter Sameer Gehlaut's stake in the company, sources in the know said.

The Blackstone Embassy duo would buy promoter Gehlaut's stake in IBREL for around Rs 2,700 crore at an equity valuation of Rs 7,000 crore, reports said on Friday.

"We are looking into it but deal is not signed," sources said.

"In line with company promoters strategy to focus on financial services in the long run, the promoters intend to dispose of upto 14 per cent of fully paid share capital of the company to third party investors," Indiabulls Real Estate informed exchanges on Thursday night.

CMD of Embassy Group, Jitu Virwani did not comment on the mail on the subject. 

According to reports, Blackstone and Embassy would buy 15 per cent stake this week followed by purchase of the residual stake over the next six to eight weeks. This will be followed by an open offer to the shareholders of IBREL.

Blackstone and Embassy have listed the country's first Real Estate Investment Trust (REIT) recently.

In March, Indiabulls Real Estate sold 50 per cent of its Mumbai properties to Blackstone for Rs 4,750 crore. Blackstone also bought Indiabulls' Chennai property for Rs 900 crore.