$1.5-billion deal of Blackstone-Prestige Estates gets CCI approval

Blackstone is the largest office owner in the country, and has invested $10 billion in real estate alone with this transaction
The Competition Comm­ission of India (CCI) has given its nod to US equity major Blackstone Group buying certain commercial and retail properties from Bengaluru-based real estate player Prestige Estates.

 

Valued at $1.5 billion, this is one of the largest real estate deals in the country comprising the sale of 21 million square feet of assets. These include five completed office assets, four under construction offices, 9 retail malls and two hotels.

 

Prestige Estates is selling the assets to reduce debt and generate liquidity via the Blackstone deal. Irfan Razack, chairman and managing director of the company, had said the cash will give the company growth capital.

 

“Also the existing assets will be replaced by brand new ones. Around Rs 6,000 crore of debt will be retired after this deal and we will be left with Rs 4,000 crore surplus for new projects,” he had said.

 

Blackstone is the largest office owner in the country, and has invested $10 billion in real estate alone with this transaction. It has joint ventures with Panchshil Realty, K Raheja Corp, Salarpuria Sattva, among others.

 

Blackstone's two joint ventures with Embassy group and K Raheja Corp have floated real estate investment trusts or REITs in the country.

 



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