Private Equity

PE-RE Fund Investments

Blackstone to invest Rs.1,235-Cr in Indiabulls Real Estate

Press Release   BSE Announcement  

Blackstone Real Estate Fund is to invest INR 1,235 crore - INR 375 crore in equity shares and INR 860 crore via warrants - in publicly listed Indiabulls Real Estate Ltd (IREL). Post the conversion of warrants, Blackstone Real Estate Fund will own about 12.4% in IREL, which is set to be renamed as Equinox India Developments Ltd.The deal is part of a INR 3,911 crore "recapitalization" investment led by Bengaluru-based realtor Embassy Group (which is to invest about INR 1,160 Cr: INR 10 Cr in equity shares and INR 1,150 Cr in warrants). Along with Embassy and Blackstone, UK-based public market investor Baillie Gifford & Co will invest INR 209 Cr in equity shares.Other investors in the deal include Quant Active Fund, Poonawalla Finance, Capri Global, Utpal Sheth and others. Post the conversion of warrants, Embassy Group will own about 18.7% in Equinox India, Blackstone Real Estate Fund about 12.4%, Baillie Gifford & Co. about 8.6%, and public shareholders, 60.2%.In parallel, IREL will make asset acquisitions worth about INR 1,853 crore including two of Embassy's projects in Bengaluru and one in Chennai. Blackstone Real Estate Fund will sell 100% of an entity holding FSI rights of project Blu (Phase II) in Mumbai for about INR 1,150 Cr in cash to Indiabulls Real Estate.S&R Associates served as the legal advisor to Indiabulls Real Estate. Ernst & Young Merchant Banking Services LLP, iVAS Partners, Colliers International (India) Property Services Pvt Ltd & Nitin Aggarwal (Registered Valuer) served as the valuers.