Blackstone, two others to buy Indian business park for $367 million: sources

MUMBAI Thu Feb 7, 2013 12:04pm IST

Related Topics

Stocks

   

MUMBAI (Reuters) - U.S. private equity firm Blackstone Group (BX.N), along with two other companies, have agreed to buy a business park on the outskirts of Bangalore for 19.5 billion rupees ($367 million), two sources with direct knowledge told Reuters.

The deal, which is expected to be concluded within two to three months according to the sources, would be the largest private equity investment by value in India's real estate sector since 2008.

Blackstone, a property fund founded by Housing Development Finance Corporation (HDFC.NS) and unlisted real estate developer Embassy Group plan to invest an equal amount to buy Vrindavan Tech Village, a special economic zone on the outskirts of Bangalore in Karnataka, one source said on condition of anonymity as the deal is not yet finalised.

The facility, built by Singapore-based developer Assetz Property Group, is spread across 106 acres of which about 20 acres have been developed into 1.9 million square feet of offices occupied by companies that include Cisco (CSCO.O), Sony Corp (6758.T) and Nokia.

On the remaining acres, Embassy plans to build homes on 30 acres and about 5 million to 6 million square feet of offices on the rest, said the source.

Real estate made up about a quarter of Blackstone's total global assets under management of $210 billion at the end of December, and is its most profitable business.

In India, Blackstone has invested nearly $600 million in commercial assets over the past two years, making it one of the largest private equity investors in the country.

Blackstone, Embassy and Assetz declined to comment. HDFC did not respond to messages.

(Editing by Ranjit Gangadharan)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Election 2014

REUTERS SHOWCASE

TCS Results

TCS Results

TCS net profit rises 51.5 percent, sees stronger sales growth.  Full Article | Quote 

Election 2014

Election 2014

Promises and more promises: India’s parties pitch their visions.  Full Article | Full Coverage 

India Markets

India Markets

Sensex slumps 207 points, at 2-1/2 week closing low.  Full Article 

Telecom Sector

Telecom Sector

RComm to raise mobile call tariff by up to 20 percent  Full Article 

Chinese Economy

Chinese Economy

China economic growth slows to 18-month low in first quarter  Full Article 

New Direction

New Direction

CEO Nadella pushes data culture at Microsoft.  Full Article 

Bitcoin ATM

Bitcoin ATM

China gets first bitcoin ATM, skirting bank crackdown.  Full Article 

Strong Sales Volume

Strong Sales Volume

Small is beautiful for Coca-Cola as volumes soar in China  Full Article 

Breakingviews

Breakingviews

Diageo throws money at Indian empire-building  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage