Indiabulls Real Estate Ltd. is planning to sell a 50% stake in its office assets in central Mumbai to Blackstone Group LP for an enterprise valuation of roughly $1.3 billion, India's Mint reported, citing "two people directly aware of the transaction."
The company confirmed in a filing that it is in negotiations and discussions with unnamed third-party investors to finalize a deal and is scheduled to hold a shareholders meeting March 23 concerning the proposed divestments.
The two Mumbai assets, Indiabulls Finance Centre and One Indiabulls Centre, span roughly 3.3 million square feet of leasable area. The deal, if successful, would be the first large real estate transaction in India in 2018. It was reported earlier in March that Indiabulls Real Estate was paying roughly $250 million to take full ownership of Indiabulls Properties Investment Trust, the commercial office rental business, before selling to Blackstone.
Blackstone's stake acquisition was reported to be in the final stages in February in a deal between $600 million to $650 million.
The report also noted that Indiabulls Real Estate is in talks to monetize or sell its residential and commercial projects in Chennai and plans to exit that market. The 2 million-square-foot One Indiabulls Park project in Chennai is under consideration to be sold. One of the sources told Mint that it has not been decided whether to completely sell the project or offer a stake sale.
Citing one of the sources, the report noted that Chennai is a non-core market for Indiabulls Real Estate, where it is planning to sell its Indiabulls Greens residential township project for roughly 2.5 billion rupees to 3.0 billion rupees and has received interest from buyers and investors. The project has three phases, of which the first has been delivered.
Indiabulls Real Estate did not respond to an email query while a Blackstone spokesperson declined to comment, according to the report.
As of March 21, US$1 was equivalent to 65.20 Indian rupees.