Global private equity firm Blackstone Group is planning to sell a significant 23.5% stake in Embassy Office Parks Real Estate Investment Trust (REIT) through a block deal scheduled for Wednesday, December 20, according to sources familiar with the matter.
Embassy Office Parks REIT is India’s first real estate investment trust and is sponsored by Blackstone and Bengaluru-based realty firm Embassy Group. The floor price for the transaction is set at ₹310 per share, and the estimated size of the deal is expected to reach $833 million.
As of the latest trading, shares of Embassy Office Parks REIT closed at ₹334.83 on the BSE, showing an increase of ₹10.46 or 3.22%. The company reported a 4% annual growth in revenue from operations at ₹889 crore for the second quarter of the fiscal year. Additionally, it declared a distribution of ₹524 crore to unit-holders.
During the July-September period of this fiscal year, Embassy REIT leased a record two million square feet across 25 deals, including 1.2 million square feet of new leases. The company signed seven new deals over one lakh square feet, indicating a return of large deal closures.
Embassy REIT owns and operates a substantial 45-million square feet portfolio, comprising nine infrastructure-like office parks and four city center office buildings in key cities like Bengaluru, Mumbai, Pune, and the National Capital Region (NCR).
It is noteworthy that REITs, a popular investment instrument globally, were introduced in India a few years ago to attract investment in the real estate sector by monetizing rent-yielding assets. This enables retail participation and unlocks the significant value of real estate assets.
The decision by Blackstone to sell a considerable stake in Embassy REIT comes amid a dynamic real estate market in India, and the block deal is expected to have a notable impact on both companies and the broader market.
