Mindspace, backed by K Raheja Corp and Blackstone, became the second real estate trust to be listed on the Indian bourses in September 2021, after Embassy Office Parks REIT.
US private equity giant Blackstone, the largest owner of commercial office space in India, has unlocked value and made a complete exit from Mindspace Business Parks REIT (real estate investment trust) by selling its balance 9.2 percent stake through the block trade route to Middle East sovereign fund Abu Dhabi Investment Authority (ADIA), sources in the know told Moneycontrol. The transaction marks the debut investment for ADIA in the domestic REIT space, these sources added.
According to one of the persons cited above, the deal was struck for around $240 million. A second person confirmed the sale of Blackstone’s existing stake via the block trade route. Both spoke to Moneycontrol on condition of anonymity.
Moneycontrol could not elicit an immediate comment from Blackstone and ADIA and is awaiting a response to email queries. This article will be updated as soon as we hear from both the firms.
Mindspace, backed by K Raheja Corp and Blackstone, became the second real estate trust to be listed on the Indian bourses in September 2021, after Embassy Office Parks REIT. Blackstone had acquired a 15 percent minority stake in the Raheja portfolio in March 2017, sold stake worth $100 million in the subsequent IPO and retained its 9.2 percent stake.
The Mindspace REIT comprises 10 Grade-A office assets totalling 31 million square feet located across India’s 4 office markets. Eighty-five percent of the portfolio is leased to tenants on a 6.7-year WALE (weighted average lease expiry), with 31 percent of rent from Fortune 500 companies.
Blackstone has emerged as an aggressive institutional investor in India with overall assets under management estimated to be $60 billion across various sectors. The real estate segment accounts for nearly $20 billion of this market value across its 42 investments. It is the largest office and retail assets owner in India with an office portfolio of 135 million sq ft and over 16 million sq ft of retail space and 40 million sq ft of logistics space.
(This is a breaking story and will be updated later with more details )