Global investment firm Blackstone on Monday announced the acquisition of Embassy Industrial Parks from Warburg Pincus and realty firm Embassy group in a big ticket deal estimated to be worth Rs 5,250 crore.
Blackstone and Embassy group did not disclose the value of the deal, which is one of the largest in Indian logistics and warehousing segment.
In 2015, the Bengaluru-based Embassy group had formed a joint venture with private equity firm Warburg Pincus to build industrial parks.
Warburg Pincus had a 70 per cent stake while the Embassy group has a 30 per cent shareholding in the joint venture firm — Embassy Industrial Parks.
NYSE-listed Blackstone said in a statement that funds managed by Blackstone Real Estate have acquired Embassy Industrial Parks from Warburg Pincus and Embassy Group.
According to sources, the deal will be concluded in two stages.
In the first stage, Blackstone is buying Embassy Industrial Parks, having a portfolio of nearly 11 million sq ft, at an enterprise value of around Rs 1,750 crore.
In the second stage, Blackstone, through its newly acquired firm Embassy Industrial Parks, would buy few land parcels directly from the Embassy group, comprising another 11 million sq ft area, the sources said.
The sources said the deal will be worth Rs 5,250 crore.
It will involve a total portfolio to 22 million sq ft.
With the deal, Blackstone will own 40 million sq ft in warehousing space in India and will become the largest owner of warehousing and logistics space in the country. Blackstone already owns 18 million sq ft.
Property consultant Anarock facilitated the acquisition of Embassy Industrial Parks.
Blackstone said that Embassy Industrial Parks comprises 10.6 million square feet of modern Grade A logistics and warehousing assets near urban centres.
“Blackstone is among the top 10 business groups in India by total value of assets and the transaction will help reinforce the firm’s leading position in office, retail and logistics,” the US-based firm said.
Embassy Industrial Parks’ warehouses are located across major industrial hubs in India, including Bangalore, Delhi NCR, Hyderabad, and Pune, and are leased to leading e-commerce and retail players.
Asheesh Mohta, Head of Blackstone’s Real Estate India Acquisitions, said: “Logistics is one of the firm’s highest global conviction themes, anchored by our belief that e-commerce trends will further fuel demand for logistics space especially near city centers.” Logistics is one of Blackstone’s core investment themes globally.
Since 2010, Blackstone has acquired more than 1.2 billion square feet of logistics.
Tuhin Parikh, Blackstone’s Head of Real Estate India, said, “we are committed to growing our presence in India. For the past 16 years, we’ve been partnering with local developers and governments to transform assets and businesses, and help communities prosper.” Blackstone has successfully launched the country’s first two REITs, he added.
Jitu Virwani, Chairman and Managing Director of Embassy Group, said, “This transaction between Embassy Group and Blackstone further strengthens and reinforces our partnership”.
“We are extremely focused on consolidating our resources towards the growth of our core businesses of office and residential development and management. This transaction with Blackstone Real Estate along with the upcoming merger with IBREL is a strategic move in that direction,” he added.
Blackstone is a global leader in real estate investing and also one of the largest global investors in India. Its real estate business was founded in 1991 and has USD 196 billion of investor capital under management.
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