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The Blackstone sponsor group is set to divest 21.8 per cent of its total Real Estate Investment Trust (REIT) units outstanding in the company through block deals, with a deal size estimated at Rs 4,455 crore.
According to sources, the floor price for the transaction is fixed at Rs 1,135 per unit, reflecting a carefully calculated valuation that takes into account market conditions and investor sentiment.
In addition to the block deal, there will be a statutory lock-up of 15 per cent of Blackstone’s stake until May 2026. This lock-up period is designed to ensure market stability and prevent a sudden influx of shares that could negatively impact the REIT’s trading performance. Furthermore, a voluntary lock-up on the remaining 6.3 per cent of Blackstone’s stake will last for nine months, signalling the group’s confidence in the long-term potential of the Real Estate Investment Trust (REIT).
As of June 30, 2024, Blackstone’s pre-deal holding stood at 43.1 per cent of the total Real Estate Investment Trust (REIT) units outstanding. This sale marks a continuation of Blackstone’s strategic exit from Indian real estate assets.
Last year, Blackstone sold its entire 23.5 per cent stake in Embassy Office Parks Real Estate Investment Trust (REIT) for approximately Rs 7,100 crore. The buyers included major global and domestic investors, such as Capital Group, ICICI Prudential Mutual Fund, and SBI Mutual Fund.
Embassy Office Parks Real Estate Investment Trust (REIT) is notable for being India’s first Real Estate Investment Trust. Sponsored by Blackstone and Bengaluru-based realty firm Embassy Group, it has become a benchmark for REITs in India, attracting significant investment from both domestic and international players.