Blackstone plans mega REIT in India

Attempts are being made to move a massive real estate investment trust (REIT) and list it domestically by US-based fund house Blackstone and its partners Salarpuria Sattva and Panchshil Realty, both of which are situated in Bengaluru and Pune, respectively. According to sources familiar with Blackstone and its partners, they want to add about 45 million square feet to the REIT. It might be the most significant in all of Asia in terms of rectangular images, and the REIT would wish to raise between Rs 7,000 and Rs 8,000 crore through a public offering. The draught documents for this will be submitted to the capital markets regulator the following year.

The property owned by Blackstone’s office arm Nucleus Office Parks, like those sold by Prestige Estates Projects last year, will be transferred, according to assets. For $1.5 billion, Blackstone made a portfolio of Prestige commercial real estate available, including office buildings, lodging, and shopping centers. Twenty-two million square feet of property are owned by Nucleus in prestigious cities like Bengaluru, NCR, and Mumbai, among others. Additionally, they want to transfer the assets of the joint venture between Blackstone and Salarpuria in Pune, Hyderabad, Bengaluru, and other cities. The Blackstone-Salarpuria JV has 12 to 15 million square feet of land, whereas Blackstone Panchsil has about 10 million square feet.

Early in 2020, Blackstone and Salarpuria paid Rs 2,500 crore to jointly acquire the 3.33 million square foot Global Village Tech Park office complex in Bengaluru that was formerly held by Coffee Day Enterprises. This is the 0.33 REIT that Blackstone and its partners are listing in the county. In April 2019, Blackstone and its joint venture partner Embassy listed Embassy Office Parks REIT and generated over Rs 4,750 crore through an IPO. This is the first indexed REIT in the nation, and it owns and manages properties totaling 42 million square feet.

In addition, Mindspace Business Parks REIT was formed by Blackstone and K Raheja Corp, indexed in August 2020, and collected Rs 4,500 crore through an IPO. The REIT occupies 31 million square feet. In February 2021, Blackstone’s global rival Brookfield added a REIT with an India focus to its index. Blackstone paid $326 million, or Rs 2,650 crore, for an approximately 8% interest in Embassy Office Parks REIT through block offers inside the open market at the beginning of this week.

Nexus Malls, Blackstone’s mall subsidiary, is also preparing for a REIT. It has immediate intentions to file the retail REIT’s draught pink herring prospectus and will raise $500–600 million domestically. The fund manager has also already chosen financing bankers for the offering. The retail REIT will become the only pure-play REIT in the nation when it is indexed.

The largest significant owner of the malls is Nexus Malls, which has around 10 million square feet of retail space. Reassessments indicate that the Blackstone-Panchshil-Salarpuria REIT will succeed the Nexus Malls REIT the quickest. Blackstone was a pioneer in listing REITs inside the nation, having global experience and a global network. The markets for these units here will expand thanks to its new REITs. The banker said that its partners may potentially gain from the REIT list and raise money.

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.


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