Blackstone exits Mindspace REIT for $235m

Jan 11, 2022 | News

Private equity major Blackstone Group has sold its entire 9.2% stake in K Raheja-backed Mindspace Business Parks REIT to sovereign wealth fund Abu Dhabi Investment Authority (ADIA) for $235m.

The global institutional investor has sold the stake through bulk deals on the stock exchange at a price of ₹320 per unit, a 16% premium over the REIT’s August 2020 IPO price of ₹275 per unit and a 2.5% discount to Friday’s close of ₹328 per unit.

ADIA entity Platinum Illumination A 2018 Trust acquired the stake from Blackstone Group entity BREP SG Asia Pearl Holdings NQ PTE.

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In March 2017, Blackstone had acquired a 15% stake in the K Raheja Corp’s commercial real estate portfolio. In August 2020, the portfolio went public as Mindspace Business Parks REIT.

The $600-million IPO was well-received with broad-based interest from both international and domestic investors in the middle of the pandemic. Blackstone had sold stake worth $100 million at the IPO while retaining 9.2%. With this exit, Blackstone has made an overall 20% internal rate of returns (IRR) on its investment.

Mindspace REIT comprises 10 Grade-A office assets totalling 31 million sq ft located across India’s four key office markets. Over 85% of this portfolio is leased to marquee tenants with 31% of rents from Fortune 500 companies.

Source: Economic Times

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