
Blackstone, Embassy to acquire Four Seasons Bangalore
The Blackstone Group and Indian developer Embassy Property Developments have acquired a 73% stake in Bangalore-based project comprising the Four Seasons Hotel and a luxury home development from Goldman Sachs.
The deal has been valued at around INR6.3 billion ($102 million), according to Live Mint. Blackstone will pay INR2 billlion to acquire a 50% stake in the project, while the remaining 50% will be with Embassy Property. The developer will also take on INR3 billion of bank debt to help finance the deal.
A total of INR3.3 billion in equity will be paid to Goldman and Century Real Estate, INR800 million of which will be paid to contractors. Goldman acquired its stake in the project for INR5 billion in 2009, forming a 75:25 joint venture with Century Real Estate.
"It's a good property and we intend to complete the project in two-and-a-half years' time," said Jitendra Virwani, chairman of Embassy Property."
The proposed Four Seasons property, designed in a mixed-use format, will also have 150,000 square feet office of space and high-end residences. Construction started in 2010.
Last year Goldman said it planned to exit the project and initiated a bidding process. An offer from real estate firm RMZ Corp. was accepted at the end of 2013, but the deal didn't go through. Eventually Century brought in Embassy as another potential bidder.
This is not the first joint investment between Embassy and Blackstone. Earlier this year they acquired a majority stake in Vrindavan TechVillage, a large business park in Bangalore.
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