Blackstone exits Embassy Reit in $850 million block deal: report

Global investment giant Blackstone has offloaded its entire 23.59% stake in Embassy Office Parks Reit for over ₹7,100 crore ($850 million), Indian media reported on Wednesday. 

The deal was closed at ₹316.10 a unit, The Hindu Business Line reported, citing an unidentified source. The sale was higher than the floor price of ₹310 per share but at a discount from Tuesday’s closing price of ₹335.75 on the NSE.

The shares were bought by existing investors, including Capital Group, Fidelity, Bain Capital, ICICI Mutual Fund, HDFC Mutual Fund and SBI Mutual Fund. 

In 2020, Blackstone had sold an 8.7% stake in Embassy Reit worth around $300 million at ₹341 per unit. With today’s transaction, Blackstone has fully exited the Embassy Office Parks Reit.

Launched together by Blackstone and realty firm Embassy Group in 2019, Embassy Reit is India’s first listed real estate investment trust (Reit) and the largest office Reit in Asia by area. 

Embassy Reit owns and operates a 45.3 million sq. ft portfolio of nine infrastructure-like office parks and four city-centre office buildings in major Indian markets such as Bengaluru, Mumbai, Pune, and Delhi-NCR. 

According to its website, Embassy Reit’s portfolio comprises 35.3 million sq. ft of completed operating area and is home to 240 of the world’s leading companies. The portfolio also comprises strategic amenities, including four operational business hotels, two under construction hotels, and a 100-megawatt solar park supplying renewable energy to tenants. 

Reit is an investment tool that owns and operates rent-yielding real estate assets, allowing individual investors to make investment in this platform and earn income. The rules regarding Reit in India were notified by Sebi in 2014.