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    Blackstone, Prestige’s $1.5 billion realty deal gets Competition Commission’s nod

    Synopsis

    As part of the deal, Blackstone will be acquiring five completed office complexes with 7 million sq ft of leasable area and four office projects with 10 million sq. ft. under development space.

    Blackstone---BCCL
    It will also acquire nine completed retail malls with 4 million sq ft leasable area. Prestige's two hotel properties are also part of this portfolio being acquired by the Blackstone Group.
    The country’s anti-monopoly watchdog the Competition Commission of India has approved the US private equity major Blackstone Group’s acquisition of certain assets of realty developer Prestige Group.

    ET had reported last month that both the entities have finalised the terms of a $1.5 billion (Rs 11,000 crore) transaction in one of the largest real estate portfolio deals in India.

    The deal, expected to be concluded by the end of this year, will see Blackstone acquiring over 21 million sq. ft. of completed and under-construction office projects and retail malls.

    As part of the deal, Blackstone will be acquiring five completed office complexes with 7 million sq ft of leasable area and four office projects with 10 million sq. ft. under development space. It will also acquire nine completed retail malls with 4 million sq ft leasable area. Prestige's two hotel properties are also part of this portfolio being acquired by the Blackstone Group.

    ET was first to report the proposed deal for the rental assets portfolio in August.

    In October, Prestige had signed a non-binding letter of intent with certain entities, acting on behalf of funds controlled, managed by the Blackstone Group for the sale of these assets including offices, retail, hotels and mall management business.

    With this transaction, Blackstone has invested around $10 billion in Indian real estate alone, while overall market value of its assets in India is around $50 billion.

    Blackstone will acquire 100% control of the portfolio that has been carved out of Prestige’s ready and under-construction projects.

    In the office segment, Prestige has 36 million sq ft completed projects, 15 million sq. ft. of ongoing projects and 22 million sq. ft. under planning. In retail, the company has 10 operational projects of 7.5 million sq. ft. space. In hospitality, the company has ready inventory of 1,262 rooms, yielding revenue of Rs 327.5 crore annually.

    Global institutional investors' interest in Indian commerical real estate remains robust even during the ongoing pandemic.

    In the first nine months of 2020, India has witnessed $2.3 billion investments into real estate. In the last few weeks, Blackstone Group and Brookfield Asset Management have entered into separate deals worth over $1.5 billion and $2 billion for office assets portfolios of Prestige Group and RMZ Corp.

    Several foreign funds like Blackstone, Brookfield, GIC, Xander, Ascendas, CPPIB, Warburg Pincus and Goldman Sachs have been expanding their investments into Indian real estate given the long-term economic growth and reform-oriented government policies.



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    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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