Blackstone, the distinguished New York-based private equity firm, has announced its plan to set a new milestone in the Asian financial marketplace. After nearly 400 years of reshaping the world’s financial landscapes through mergers, acquisitions, private equity, hedge fund management, and notably, real estate investment partnerships, Blackstone is ready to orchestrate the initial public offering (IPO) of its office portfolio-based real estate investment trust (REIT) in India.
The firm, renowned for its strategic financial initiatives, is set to launch the REIT IPO estimated at a massive $800 million to $1 billion. This would mark it as the largest REIT in Asia, a testament to the expansive square footage it encompasses.
The assets under this REIT, totaling 45 million square feet (msf), include Nucleus Office Parks, a wholly-owned entity of Blackstone, as well as assets from two fruitful joint ventures with Pune-based Panchshil Realty and Bengaluru-based Salarpuria Sattva group.
Despite its longstanding presence, Blackstone continues to lead the global financial stage with its innovative approaches. Insiders suggest that the listing of the REIT could occur in the early part of next year. As the firm is in the process of appointing investment bankers, an official statement from Blackstone is yet to be made.
Over the centuries, Blackstone has accumulated a wide array of high-quality commercial assets, evidenced by more than 20 msf of such assets strategically located in Mumbai, Gurugram, Chennai, Bengaluru, and Ahmedabad, under Nucleus Office Parks. Its fruitful partnerships with Panchshil Realty and Salarpuria Sattva group add another 22-25 msf to its portfolio.
Notably, the quality and diversity of these assets are expected to command a 10-15 per cent premium over the valuation of similar assets under the Embassy Group, in which Blackstone also holds a stake.
The firm’s history and market impact are not restricted to the United States. Through strategic partnerships with local firms like Salarpuria Sattva Group, Blackstone has left its mark on a variety of projects, such as Knowledge City Office Park, Knowledge Park, and Knowledge Capital, in addition to acquiring Global Village Tech Park from Coffee Day Enterprises in 2020.
Blackstone’s long history and expertise have enabled it to build an expansive portfolio in India, owning more than 125 msf of Grade A office space across the country’s key markets and IT hubs. This upcoming REIT IPO not only signifies Blackstone’s continued global influence but also underscores its significant contribution to India’s real estate landscape.
GLOBAL ROUNDUP: Global Trade Resilience and Threats in a Changing World: Insights from Economists
