Blackstone invests in India business park – report
The Blackstone Group has reportedly joined two other companies in purchasing a business park in South India for INR19.6 billion ($367 million).
The private equity firm, unlisted real estate developer Embassy Group and a property fund founded by Housing Development Finance Corporation are to each invest an equal amount for Vrindavan Tech Village, a special economic zone on the outskirts of Bangalore in the southern state of Karnataka.
According to Reuters, the deal, which is expected to be concluded in 2-3 months, would be the largest private equity investment by value in India's real estate sector since 2008.
The facility, built by Singapore-based developer Assetz Property Group, is spread across 106 acres, of which about 20 acres have been developed into 1.9 million square feet of offices occupied by companies including Cisco, Sony and Nokia. Embassy also plans to build homes across another 30 acres of the park and build around 5-6 million square feet of offices on the rest.
Real estate is one of most profitable parts of Blackstone's business, accounting for a quarter of its $210 billion total global assets under management, as of the end of December. In India, the firm has invested nearly $600 million in commercial assets over the past two years, making it one of the largest PE players in the country.
In October, Blackstone closed its seventh global real estate fund on $13.3 billion. That same month it secured one of the largest commercial real estate deals in India to date, taking a 50% stake in a portfolio of three business parks for $200 million.
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