Blackstone lines up exit from Embassy REIT for Rs 6,913 crore

Blackstone lines up exit from Embassy REIT for Rs 6,913 crore

Global private equity firm Blackstone is planning to launch a share sale on Wednesday to sell its 23.5% holding in Embassy Office Parks REIT (Embassy REIT) through a block deal, sources in the know have revealed. Blackstone aims to raise 6,913 crore ($833 million) from the stake sale, the sources added. “They plan to keep floor price at310 apiece and they aim to raise $ 833 million from the sale ,” the sources stated.

Embassy Office Park REIT’s share price rose 3.29% to 335 on the NSE with the current market capitalisation at31,754 crore. At Tuesday’s price, Blackstone’s stake is worth 7,462 crore. A Blackstone spokesperson did not offer any comments on the development. Kotak Mahindra Capital and IIFL Capital are the advisors for the proposed trade, reports said on Tuesday. Embassy REIT is the first listed REIT in the country. Blackstone and its partner Embassy group listed the REIT in 2019.

It is also working on a Mega REIT with its partners Panchshil Realty and Salarpuria Sattva which is expected it hit the market next year. Embassy Office Parks REIT leased 2 million square feet of office space across 25 deals in the second quarter of FY24, with an operational revenue of889 crore, a rise of 4%.