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Indiabulls to sell 50% in Mumbai assets to Blackstone for Rs 47.5 bn

Once this transaction is concluded, Indiabulls will cease its sole control over the two subsidiaries IPPL and IRECPL

Press Trust of India  |  Mumbai 

Indiabulls
Indiabulls

In a major deal, (IBREL) has executed a definitive agreement with global investor to divest 50 per cent stake in its prime commercial properties in the megapolis for Rs 47.50 billion.

IBREL has executed transaction documents with the entities controlled by Blackstone to divest their entire holding in and thereby indirectly divesting 50 per cent stake in Properties Private Ltd (IPPL) and Company (IRECPL) at an aggregate enterprise value of around $1,461.5 million or Rs 95 billion, the company had said in a BSE filing last evening.

"Substantial part of sale proceeds would be utilised towards repayment of existing debts of the company and its subsidiaries, and for achieving sustainable long term growth and for further strengthening of their on-going businesses," it said.

The transaction is expected to be completed by March 31.

Once this transaction is concluded, Indiabulls will cease its sole control over the two subsidiaries IPPL and IRECPL, Indiabulls added.

The company, did not give any details about the assets held by these two subsidiaries.

However, according to sources, the two subsidiaries hold premium commercial office assets, Indiabulls Centre and One Indiabulls Centre, in central

Indiabulls in April last year had announced plans to restructure its business by creating a separate venture for commercial and leasing operations as part of efforts to focus on each segment.

It planned to hive off commercial and leasing business into a separate entity Assets Ltd.

In a recent announcement, the company said it plans to sell its housing and commercial assets in Chennai as part of strategy to exit non-core market and restructure its business.

The US-based Blackstone directly and along with its joint venture partner group is currently holding huge commercial assets with over 56 million sqft across major cities.

group is planning to launch the country's first to monetise commercial assets.

Unlike housing sector, the commercial real estate is doing fairly well and attracting huge investment from global investors like Blackstone and Singapore's sovereign wealth fund

In late December 2017, promoters concluded sale of 40 per cent stake in rental arm for nearly Rs 120 billion. This deal included sale of 33.34 per cent stake to for Rs 90 billion.

Few years back, had sold over 4 lakh sq ft of office space in for nearly Rs 15 billion.

First Published: Sat, March 24 2018. 21:50 IST
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