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In a strategic move, Blackstone, the global private equity firm, is set to divest its entire stake in Embassy Office Parks REIT through a substantial block deal estimated at $833 million.
The impending sale involves the disposal of Blackstone’s 23.6% stake in the real estate investment trust, marking a significant development in the financial landscape.
Floor Price Set at Rs 310
According to insider sources, the proposed block deal comes with a floor price of Rs 310 per share. Kotak Mahindra Capital and IIFL Capital have been appointed advisors for this substantial transaction, which has been shrouded in confidentiality. The move aligns with Blackstone’s strategic realignment of its investment portfolio.
Embassy Office Parks REIT: India’s Pioneer in Real Estate Investment Trusts
Embassy Office Parks REIT holds the distinction of being India’s inaugural publicly listed real estate investment trust. The news of Blackstone’s exit comes amid a positive market performance for Embassy Office Parks REIT, with shares witnessing a 3.22% surge, closing at Rs 334.83. Despite a 15% return in the last six months, the stock has encountered a 4% decline over the past year.
Blackstone’s Storied Journey: From $4 Lakh to Managing $1 Trillion in Assets
Founded in 1985 by Peter G. Peterson and Stephen A. Schwarzman with an initial capital of Rs 4 lakh, Blackstone has evolved into the world’s first private equity firm managing assets worth $1 trillion. The impending exit from Embassy Office Parks REIT marks another strategic decision in Blackstone’s dynamic and influential trajectory.
Industry Speculation and Official Comments
While multiple industry sources confirmed the divestment plan, Blackstone and the involved investment banks remained unreachable for official comments. The market awaits further details and insights into the unfolding mega block deal.
About Blackstone
Blackstone Inc. is a prominent American alternative investment management company headquartered in New York City. Over the past three decades, Blackstone’s private equity division has stood out as one of the major players in leveraged buyouts, while its real estate arm has been actively involved in the acquisition of commercial real estate properties.
Here are some key details about Blackstone:
- Stock Information: Ticker Symbol – BX (NYSE); Current Stock Price – $125.96; Change – -3.41 (-2.64%).
- Subsidiaries: Blackstone Real Estate Income Trust Inc.
- Founders: Stephen A. Schwarzman, Peter G. Peterson
- CEO: Stephen A. Schwarzman (since 1985)
- Assets Under Management (AUM): As of 2021, Blackstone manages assets totaling 88,090.17 crores USD.
- CFO: Michael S. Chae
- CTO: John Stecher
- President: Jonathan D. Gray
With its diverse portfolio and influential leadership, Blackstone continues to play a significant role in the alternative investment landscape, showcasing a strong presence in both private equity and real estate sectors.
About Embassy Office Parks REIT
Embassy REIT is the proprietor and manager of a substantial 45.3 million square feet (“msf”) portfolio, comprising nine office parks with infrastructure-like features and four city-center office buildings. These properties are strategically located in India’s most thriving office markets, including Bengaluru, Mumbai, Pune, and the National Capital Region (“NCR”). The company operates within the commercial sector.
- Stock Information:542602 (BOM); Current Stock Price – ₹334.83; Change – +10.46 (+3.22%);
- Headquarters: Bengaluru
- Founded: 2014
Embassy REIT’s robust portfolio, situated in prime business locations, underscores its significant presence in the commercial real estate market, contributing to the dynamic landscape of office spaces in India.