Prestige group consents to sell certain office, retail assets & 2 resorts to Blackstone for Rs 12K crore

Realty organization Prestige Estates Projects Ltd on Saturday stated it has agreed to sell certain workplace, retail and lodge houses to international funding organization Blackstone — in a large ticket real estate deal anticipated at round Rs 12,000 crore.

Prestige institution did not reveal the deal size, however reassets stated that the Bengaluru-primarily based organization has signed time period sheets with Blackstone to promote business properties for an employer fee of around Rs 12,000 crore.

The deal is predicted to be closed through give up of the following month after all of the essential approvals along with that of the Competition Commission of India (CCI), reassets stated.

In a regulatory filing, Prestige on Saturday signed a non-binding letter of intent with Blackstone. Prestige institution has supplied to Blackstone, exclusivity when it comes to the transactions, it added.

The closure of the deal may be difficulty to final touch of due diligence, finalization of the transaction structure, negotiation and execution of the definitive files, delight of the situations precedent in such definitive files and receipt of approvals, if any required.

According to reassets, the overall workplace, retail and lodge belongings to be monetised thru this deal might be 15-20 million sq feet each finished and beneathneath construction. Two inns with 336 keys also are a part of the deal.

Blackstone and Prestige institution spokesperson declined to comment.

Prestige institution will utilise the fund raised thru this monetisation to in part retire its debt and destiny expansion.

US-primarily based Blackstone has invested round USD eight billion in Indian actual property. It has subsidized REIT (Real Estate Investment Trust) released and indexed up to now in India — Embassy Office Parks REIT and Mindspace Business Park REIT).

India’s office market has been appearing properly for the reason that previous few years regardless of the general slowdown withinside the real estate sector.

The internet workplace area leasing stood at document 45-50 million sq feet in 2019 calendar yr that still noticed the country’s first REIT being released and indexed on inventory change through Embassy Office Parks.

In August this yr, Mindspace Business Parks released and indexed the country’s 2nd REIT, whilst these days Brookfield has filed report with SEBI for the third REIT.