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

REUTERS SHOWCASE

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Kashmir Package

Kashmir Package

Modi announces relief package for flood-hit Kashmir.  Full Article 

Microsoft Earnings

Microsoft Earnings

Microsoft sales beat Street hopes, cloud profits up.  Full Article 

U.S. Economy

U.S. Economy

Spectre of no-inflation world looms over Fed's return to normal  Full Article 

Insider Trading

Insider Trading

Rengan Rajaratnam, SEC to settle civil insider trading charge.  Full Article 

Market Watch

Market Watch

Betting on the beaten up? Investors pin hopes on stocks in Europe, Japan.  Full Article 

India Insight

India Insight

Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw”  Full Article 

Reuters India Mobile

Reuters India Mobile

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