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Blackstone to sell $400 mn stake in REIT Embassy, ADIA eyes investment

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Three sources familiar with the matter told Reuters that Blackstone will sell a stake worth up to $400 million in Embassy Office of Parks REIT, the country’s largest real estate investment fund, via stock exchange blocking deals.

One of the sources said that Abu Dhabi’s sovereign wealth fund, one of the largest in the world, is likely to acquire at least half of the stake that Blackstone will sell. Embassy Office Parks, the first real estate investment trust in India to be listed in 2019, owns and manages more than 42 million square feet of office complexes and office buildings in cities such as Bengaluru and Mumbai. It is the largest REIT office in Asia by region.

The sources, who declined to be named, because the discussions are private and sensitive, said in the deals planned on the Indian exchanges as early as next week, the value of the sale of Blackstone will be between 300 and 400 million dollars.

Spokespeople for Blackstone and the Bengaluru-based embassy did not immediately respond to a request for comment. A spokesman for the Abu Dhabi Investment Authority (ADIA) in Abu Dhabi declined to comment.

Shares in Embassy REIT closed at INR 354.42 on Friday in Mumbai, giving it a market capitalization of $4.15 billion. Blackstone currently owns a 32 percent stake in Embassy REIT, and at current market value, the proposed sale by Blackstone would represent 7.2 percent to 9.6 percent of its stake, according to Reuters calculations.

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This transaction will be the third sale of Blackstone’s stake in the Embassy, ​​after two such transactions in 2020 and 2021 in which the private equity group collectively sold more than $500 million of shares.

Blackstone has invested more than $11 billion in Indian companies and assets over the years, but has reduced its interests over time in Indian REITs.

Earlier this year, it sold its entire stake in Mindspace Business Parks REIT for $235 million.

(This story has not been edited by Business Standard employees and is automatically generated from a shared feed.)

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