Blackstone buys commercial assets in India for US$614m

US asset manager Blackstone has agreed to acquire the outstanding stake in Indiabulls Real Estate’s commercial portfolio for about US$614m (Rs 4,420 crore) after purchasing a half-stake in the portfolio last year.

The deal is part of Indiabulls Real Estate’s plan to achieve zero net debt this financial year through strategic divestments across its commercial and leasing business assets, the firm said in a regulatory statement

Blackstone bought a 50% stake in Indiabulls Real Estate’s One Indiabulls Centre and Indiabulls Finance Centre office assets in Mumbai for $730m in March last year. 

The transaction sees Indiabulls Real Estate dispose of its existing joint ventures with Blackstone, namely Indiabulls Properties and Indiabulls Real Estate which own assets in Mumbai. 

Blackstone is also acquiring Yashita Buildcon and Ashkit Properties, which own assets in Gurugram, as well as additional stakes and assets in Mumbai, New Delhi and Gurugram. 

Indiabulls Real Estate is one of India’s largest real estate companies with a pipeline worth Rs 32,189 crore in gross development value, as of end-March 2018. 

At the time, it had 15 on-going projects comprising 33.9m sq.ft of total saleable area, as well as a commercial development pipeline with 3.2m sq.ft. of lettable area under construction. 

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