Blackstone inks $40 mn deal with GIC-backed Indian developer

 Blackstone inks $40 mn deal with GIC-backed Indian developer

Blackstone Group Inc has struck a deal to acquire two units of an Indian developer that counts Singapore sovereign wealth fund GIC Pte Ltd and ace stock market investor Rakesh Jhunjhunwala as its backers.

The world’s biggest private equity firm will buy TARC Ltd’s wholly owned units Goodluck Buildtech Pvt. Ltd and Anant Raj Hotels Ltd for Rs 295 crore (about $40 million).

The amount is payable in tranches, subject to the satisfaction of certain conditions and closing actions that include transfer of certain land parcels aggregating to about 36 acres for warehousing development.

Delhi-based TARC, which was known as Anant Raj Global Ltd until a few months ago, holds these land parcels in villages Jindpur, Khera Kalan and Nangli Poona of North Delhi, and will transfer the assets to the two units.

TARC expects to complete the transaction by the end of August. The company is backed by GIC, which holds a 4.2% stake, and Jhunjhunwala, who owns 3.39%, stock-exchange data show.

The deal expands Blackstone’s exposure to India’s real estate sector, where it has already cemented its presence as the biggest owners of office properties and warehousing space.

In May this year, Blackstone had agreed to acquire the warehousing and logistics joint venture of its US peer Warburg Pincus and Indian developer Embassy Group for an estimated enterprise value of $700 million (about Rs 5,250 crore). At the time, Blackstone had said that it was investing heavily in warehousing and logistics segments to tap into emerging opportunities because of growth of the e-commerce sector in India.

Earlier this year, Blackstone also concluded the first phase of a $1.2 billion deal with Indian developer Prestige Estate Projects to buy office, retail and hotel projects.

Blackstone is one of the largest property owners in the world. It started its real estate business in 1991 and now manages $208 billion in investor capital.

Sumit Upadhyaya

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