Blackstone begins realty assets listing; may raise Rs 6,000 cr via REIT
Dec 15, 2014 comments ( 0 )
American private equity firm Blackstone has initiated the process of assembling all of its property based in India into a real estate investment trust (REIT) and list this on the local stock market, according to a report published by Economic Times.
The firm is set to raise around $1.5 billion (Rs 6,000 crore) by selling roughly 50% to the public. The stake sale will value the fund's assets at $3 billion. The fund manager has the third-largest commercial Real Estate portfolio after DLF Ltd and K Raheja Corp.
"Six investment banks have been hired to advise them to transfer the assets with the least tax outgo," told one of the persons familiar with the development. The investment banks are Citigroup, Goldman Sachs, JPMorgan, Standard Chartered and UBS with Morgan Stanley as the lead banker, the person told Economic Times.
Another person close to the transaction added Blackstone was looking to monetise its Real Estate assets and the appointment of bankers was to see if a REIT was possible.
"The firm is looking at a listing in the next financial year. Initial work has begun," said another of the three persons.
Blackstone Group, one of the largest global PE investors, has been pumping money into Indian real estate since 2009 and has spent $1.5 billion on 15 assets, including the 25-storey Express Towers in Mumbai. The Sebi, the capital market regulator, issued norms for the listing of REITs in August.