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Blackstone, two others to buy Indian business park for $367 mn

Source : BUSINESS_STANDARD
Last Updated: Fri, Feb 08, 2013 04:10 hrs

US private equity firm Blackstone Group, along with two other companies, have agreed to buy a business park on the outskirts of Bangalore for Rs 1,950 crore ($367 million), two sources with direct knowledge said.

The deal, expected to be concluded within two to three months, according to the sources, would be the largest private equity investment by value in India's real estate sector since 2008. Blackstone, a property fund founded by Housing Development Finance Corporation and unlisted real estate developer Embassy Group, plan to invest an equal amount to buy Vrindavan Tech Village, a special economic zone on the outskirts of Bangalore in Karnataka, one source said on condition of anonymity as the deal had not been finalised.

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 that include Cisco, Sony Corp and Nokia. On the remaining acres, Embassy plans to build homes on 30 acres and about five million to six million square feet of offices on the rest, said the source.

Real estate made up about a quarter of Blackstone's total global assets under management of $210 billion (Rs 11.1 lakh crore) at the end of December, and is its most profitable business.

In India, Blackstone has invested nearly $600 million (Rs 3,193 crore) in commercial assets over the past two years, making it one of the largest private equity investors in the country.

Blackstone, Embassy and Assetz declined to comment. HDFC did not respond to messages




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