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Updated December 21st, 2023 at 08:43 IST

Blackstone completes exit from Embassy REIT, sells 23.5% stake

Blackstone sold nearly 22.36 crore units of Embassy REIT at approximately Rs 316 per share, representing a deal value of about Rs 7,100 crore.

Reported by: Business Desk
Blackstone
Blackstone | Image:Blackstone
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Global investment firm Blackstone completed its divestment from Embassy Office Parks Real Estate Investment Trust (REIT) on Wednesday by selling its entire 23.5 per cent stake for approximately Rs 7,100 crore.

The shares were acquired by various foreign and domestic investors, including Capital Group, ICICI Prudential Mutual Fund, and SBI Mutual Fund, through open market transactions.

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Blackstone sold nearly 22.36 crore units of Embassy REIT at approximately Rs 316 per share, representing a deal value of about Rs 7,100 crore. 

The units were sold at a slight discount compared to the REIT's closing price of Rs 332.11 on the BSE, reflecting a 1 per cent decline from the previous day's closing.

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In a bulk deal, around 19 crore units of the REIT were sold at an average price of Rs 316 apiece to multiple investors, including SBI Mutual Fund, ICICI Prudential MF, HDFC MF, Fidelity Funds South East Asia Fund, Capital Group, and APAC Company XXIII. Existing unit holders, including ADIA, also participated in the transaction.

Embassy REIT, India's first REIT, was listed on stock exchanges in 2019 after raising around Rs 5,000 crore through a public issue. Embassy Group retains an approximately 8 per cent stake in the REIT.

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Embassy REIT CEO Aravind Maiya highlighted the increasing public shareholding, which has risen from 30 per cent at the IPO to 92 per cent currently. He said the widespread distribution of unit holders contributed to the depth and liquidity of the REIT's units.

Blackstone has gradually sold its stake in Embassy REIT in multiple tranches, reducing its holding from 55 per cent at the IPO stage. 

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The latest exit marks the completion of its divestment journey from Embassy REIT, while Blackstone continues to be a major player in India's commercial real estate market.

(With PTI Inputs)

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Published December 21st, 2023 at 07:55 IST

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