Blackstone to purchase remaining 50% stake in Indiabull's commercial assets: Report

Blackstone Group will purchase the remaining 50 percent stake in Indiabulls Real Estate’s commercial properties for over Rs 4,420 crore, according to a report by The Economic Times.

The two companies have signed a term sheet for the commercial portfolio, Indiabulls told the publication without mentioning the value of the deal.

In March 2018, Blackstone acquired a 50 percent stake in IBREL’s commercial properties for Rs 4,750 crore. The portfolio included One Indiabulls and Indiabulls Finance Centre in Mumbai’s central area.

Moneycontrol could not independently verify the news.

Blackstone declined to comment when approached by The Economic Times.

The transaction is a part of Indiabull’s strategy of exit its real estate projects and focus on its financial services offerings.

The move will also help IBREL clear some of its debt. The company intends to become debt free this fiscal year by divesting its stake in various businesses.

IBREL’s total debt stood at Rs 4,420 crore and cash equivalent at Rs 739 crore as of March 2019, according to Bloomberg data.

The deal will also likely include a property in Gurgaon, the report said.

“Blackstone and Indiabulls are in advanced talks for one more asset in the National Capital Region and this deal is also expected to be concluded over the next few weeks,” a source told the paper.

In 2018, Blackstone acquired IBREL’s commercial properties in Chennai for Rs 850 crore.

Blackstone’s investments in India’s real estate space could cross $6 billion in 2019, according to a Mint report.