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Blackstone seals India’s largest commercial real estate deal – report

  • Susannah Birkwood
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The Blackstone Group has reportedly secured the biggest commercial real estate deal in India to date, acquiring a 50% stake in a portfolio of three business parks for $200 million.

The portfolio, bought from Bangalore builder Embassy Property Developments, involves three commercial properties occupying more than 10 million square feet of space: namely Embassy Golf link and Manyata Embassy Business Park in Bangalore and Embassy TechZone in Pune.

"Blackstone and Embassy signed the transaction earlier this month. The deal was followed by the October 4 order of the Competition Commission of India, which gave clearance for the transaction," a source told The Economic Times. "It is an equity-level investment, where a holding company was floated with three commercial assets under it. However, the deal finally cascaded down to the SPV level."

As part of the acquisition, Blackstone will receive compulsorily convertible debentures of Pune Dynasty Projects (PDP), which is currently developing the non-special economic zone area of Embassy TechZone in Pune. The PE firm's total stake in a special purpose vehicle holding the three business parks will be 50% after the conversion takes place.

PDP is currently 51%-owned by Embassy, which will now purchase the remaining 49% of share capital from Mauritius-based financial investor Alta Vista.

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