Blackstone could be heading for another trip to the bourse, as the US private equity giant signs a preliminary deal to purchase $1.6 billion in commercial property in the southern half of India. Prestige Group revealed that it had signed a non-binding letter of intent with entities acting on behalf of Blackstone funds for the sale of office, retail and hotel properties belonging to the Bangalore-based developer. The two parties have entered exclusive talks regarding Blackstone’s potential acquisition of the assets or formation of joint ventures or partnerships.
The two parties will now enter into negotiations involving setting a final deal structure, as well as conducting due diligence, with a formal agreement expected by the end of November, according to local press reports. Blackstone’s Mindspace REIT, a joint venture with India’s K Rajeha Corp, held a $476 million IPO in late July. Embassy Office Parks REIT, a joint venture between Embassy Group and Blackstone, became India’s first REIT with a $773 million 2019 IPO. Reports regarding the deal had estimated that Blackstone would be acquiring eight to 10 properties from Prestige, spanning a total of 15 to 20 million square feet (1.4 million to 1.9 million square meters), including both completed properties and projects under construction. Blackstone has also taken aim at India’s logistics sector, with the company led by Stephen Schwarzman late last year committing $175 million to a joint venture with Mumbai-based real estate giant Hiranandani Group to build 12 million square feet of industrial properties in the country.