Blackstone has struck agreed to buy nearly 0.7 million square feet of office space in One BKC from the city-based developer Radius, for a reported, Rs 2,500 crore.
In line with its strategy to invest in Indian real estate, American private equity major Blackstone has struck agreed to buy nearly 0.7 million square feet of office space in One BKC from the city-based developer Radius, for a reported, Rs 2,500 crore, making it the largest deal in the country's office space.
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With around $10.4 billion investments in the country since 2005, Blackstone is the largest global investor in the domestic realty market with an exposure of over $5.4 billion and the One BKC deal is the largest in the office space segment to date.
While Radius has confirmed the deal with Blackstone, it refused to divulge details including valuation. Blackstone has been pumping money across the sector and of the total investment, $6.6 billion were pumped in the past four years alone.
Its real estate division has so far committed nearly $5.4 billion across 33 investments in the country, of which it has committed $4 billion towards acquiring Grade A commercial office buildings and invested the rest in retail, hotel and residential assets.
In April, Blackstone announced its plans to acquire a majority stake in packaging company Essel Propack for Rs 3,211 crore, and in February it bought 97.7 percent stake in Aadhar Housing Finance by buying out Wadhawan Global Capital and DHFL for Rs 3,000 crore.
And in May, Blackstone along with its partner Embassy has also launched the country's first real estate investment trust 'Embassy Office Parks REIT', which raised Rs 3000 crore. Besides the Embassy Group, Blackstone has also partnered with developers like Salarpuria Sattva Group, Indiabulls Real Estate, Panchshil Realty, and K Raheja Corp, among others.
Under the present deal with Radius, Blackstone has agreed to buy nearly 7 lakh sqft of space at One BKC, the most sought after central business district in the megapolis. The property has around 1.5 million sqft and Blackstone is snapping up nearly half of the built-up space, making it the largest office space deal in the country to date.
Spread across 2.5 acres, One BKC houses many leading names such as Bank of America, Trafigura, Cisco, Facebook, Amazon, ICBC, Shree Cement, Motherson Sumi, Hitachi and ICICI Prudential, among others. As per reports, Radius will use the proceeds from the deal to repay Rs 1,600 crore it has taken from Indiabulls Housing Finance for the project.