Blackstone may buy Indiabulls Real Estate promoters’ stake for around $1 billion


US-based investment firm Blackstone may acquire Indiabulls Real Estate’s promoters’ stake at an estimated enterprise value of around $1 billion, sources said Thursday. Blackstone might buy promoters’ total 39 percent stake in Indiabulls Real Estate through a joint venture with Bengaluru-based realty firm Embassy Group, they added.

Indiabulls Group is looking to exit the real estate business so that it can get regulatory approvals for the proposed merger of Indiabulls Housing Finance with the Lakshmi Vilas Bank.

Sources said the talks between Blackstone and Indiabulls Group are at an advanced stage.

The deal could be struck at an enterprise value of around $1 billion, they added.

Embassy Group and Blackstone declined to comment, while Indiabulls Group could not be reached.

Indiabulls Real Estate has been selling its commercial assets to Blackstone.

In December 2018, it sold 50 per cent stake in two office assets in Gurgaon to Blackstone at an enterprise value of Rs 464 crore.

Early 2018, Indiabulls had sold 50 per cent stake in its two prime commercial assets in Mumbai to Blackstone for an enterprise value of Rs 9,500 crore.

Indiabulls has an equal joint venture with Blackstone. The JV has 3.3 million sq ft completed asset with annuity income of Rs 670 crore, while 0.8 million sq ft is under construction.

Blackstone and Embassy Group joint venture firm Embassy Office Parks recently launched India’s first real estate investment trust to raise Rs 4,750 crore.Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.