Major Private Equity Investment in Bangalore Business Park
US-based private equity firm Blackstone, in collaboration with Indian real estate firms HDFC and Embassy Realty, is planning to acquire a Business Park in Bangalore for a price of $367 million (approximately Rs.19.5 billion).
Blackstone plans to purchase the Bangalore Business Park for $367 million. The private equity major is currently in negotiations and is expected to finalize the deal within the next two to three months.
This Rs.19.5 billion deal stands as the largest private equity investment in India since 2008. Blackstone will join forces with HDFC and Embassy Realty to equally invest in the Business Park situated on the outskirts of Bangalore.
The Business Park, developed by Assetz Property Group, a Singapore-based real estate firm, spans over 106 acres. It boasts nearly 1.9 million square feet of office space developed across 20 acres. Notable tenants include Cisco, Nokia, and Sony Corp.
Embassy Realty plans to develop housing projects across 30 acres of the land. Additionally, the group aims to construct approximately 5 to 6 million square feet of office space in the remaining area.
While Blackstone is primarily a private equity firm, its real estate investments, which make up about a quarter of its total assets, have been particularly successful. A significant portion of the firm's total profits comes from its real estate assets. Globally, Blackstone’s assets are valued at $210 billion, with investments of around $600 million in commercial properties in India over the past couple of years.
Currently, Blackstone holds the largest private equity investment in India. However, Assetz Property Group, Blackstone, and Embassy Realty declined to comment on the development, as did HDFC.