Blackstone (BX) is supposedly in talks to sell around 50% of its real estate investments in India. If this turns out to be true, it will lead to a deal that's worth around $480 million based on current prices.
Blackstone (BX) is planning to sell its REIT investment to another firm named Bain. As far as Blackstone is concerned, it seems that the company is planning to readjust its portfolio. And for Bian, it would be the first real estate investment for the company in India.
According to sources, these talks are still in their early stages and will still take a few weeks to get more details. For now, the pricing and the timeline for the deal are yet to be finalized. But the available data suggests that the said transaction will be done through block deals on the stock exchanges of India.
The REIT discussed in this deal is the Embassy Office Parks which was listed in 2019. According to information, the REIT controls around 43.2 million sq. feet of office buildings in major Indian cities. This makes it one of the biggest office-based REITs in the Asian region.
In case you didn't know, REITs are based on real estate assets and are very similar to mutual funds. The source of revenue for these REITs is the rent they collect from their properties.
Blackstone currently holds around 24% stake in the Embassy REIT. And if we look at the market cap of Embassy REIT, it is around $4 billion. So if the said deal goes through, Blackstone will sell 12% of the REIT shares.
According to available information, this will be the 4th stake sale of Blackstone as seen in previous years (2020 - 2022). In September 2022, around $400 million worth of REIT shares were sold by Blackstone to the investment authority of Abu Dhabi.