India’s leading real estate company Indiabulls Real Estate Ltd has announced that it will be selling its entire stake in Mariana Infrastructure Ltd along with commercial assets in Mumbai to The Blackstone Group for Rs 810.7 crore.
In a filing to stock exchanges on Sunday, Indiabulls Real Estate informed that the company and its certain subsidiaries have entered into definitive agreements with entities controlled by Blackstone, which is a globally renowned US-based real estate private equity investor, to divest the entire stake in Mariana Infrastructure and the commercial assets/development at Mumbai.
Mariana Infrastructure owns a major commercial project at Gurugram. Indiabulls Real Estate said that the sale of the properties is expected to be completed by the end of the year.
After the announcement of the deal, shares of Indiabulls Real Estate rose as much as 2.8% to Rs 63.50 on BSE in intra-day trade on Monday, December 23, 2019.
The deal takes forward the announcement made by Indiabulls in September when it had announced that it had signed a term sheet agreement with Blackstone Group to offload its remaining 50% stake in commercial assets for about Rs 4,420 crore.
Indiabulls had then said that the aim is to “embark on a clear and simple path to achieve zero net debt in the current financial year through strategic divestment of its stakes in certain commercial and leasing business assets”.
At the end of 2018-19, the company’s total net debt stood at Rs 4,590 crore. Blackstone had concluded a similar deal for 50% of Indiabulls Real Estate’s portfolio for nearly Rs 4,750 crore in March 2018, making it one of the country’s largest such transactions in real estate.
Of late, Blackstone has emerged as the most aggressive institutional investor in India’s real estate sector with a commitment of over $5.3 billion (about Rs 38,000 crore) in property markets of Mumbai, Noida, Pune, Bengaluru, Chennai and Hyderabad.