Blackstone Inc. is set to divest its entire 23.59% stake, valued at $833 million, in Embassy Office Parks, India’s largest real estate investment trust (REIT). This move comes four years after the REIT’s initial listing. The transaction, disclosed through a term sheet viewed by Reuters and a source with direct knowledge, involves the sale of 223.6 million units of Embassy REITs in one of the year’s most substantial block deals. The units will be offered at a 7.7% discount to the December 19 unit price of 335.75 rupees, with the sale executed through block deals in the secondary market.
This development signifies Blackstone’s exit from India’s inaugural listed REIT. The U.S.-based investment manager has been gradually reducing its interest in Indian REITs, having sold its complete stake in Mindspace Business Parks REIT for $235 million in 2022. Blackstone has consistently lowered its stake in Embassy REIT, with a notable $400 million sale in September 2022 to investors, including the Abu Dhabi Investment Authority.
Embassy Office Parks, which became India’s first REIT in 2019, boasts ownership and operation of over 45.3 million square feet of office parks and buildings in cities like Bengaluru and Mumbai. It holds the title of the largest office REIT in Asia by area.
Despite requests for comment, neither Blackstone’s spokesperson nor Embassy’s representative responded to emails from Reuters. Likewise, investment bankers involved in the deal, Kotak Securities and IIFL Securities, did not provide comments as of now.