Blackstone Group LP's India-based joint venture with Embassy Group is planning to commence an initial public offering, or IPO, by December-end, with their sights set on raising approximately US$1.00 billion, The Economic Times of India reported, citing two people familiar with the matter.
Embassy Office Parks, approved by the Security and Exchange Board of India to be the country's first real estate investment trust, or REIT, would be divesting at least 25% of its stake through the listing, according to the Aug. 10 report.
According to the publication, the REIT owns 20 million square feet of office properties, 13 million square feet of which is still being constructed. It also noted that Embassy Office's capital expenditure over the next three to five years is tipped to reach 50 billion Indian rupees.
One of the sources was quoted by the paper as saying none of the REIT's backers are planning to exit the investment completely. The Economic Times noted further that the pair declined to comment on the matter.
As of Aug. 9, US$1 was equivalent to 63.86 Indian rupees.