Blackstone buys Embassy Parks in Rs 5,250 crore deal

DELHI: Global investment firm Blackstone on Monday announced the acquisition of Embassy Industrial Parks from Warburg Pincus and realty firm Embassy group in a big ticket deal estimated to be worth Rs 5,250 crore.

Blackstone and Embassy group did not disclose the value of the deal, which is one of the largest in Indian logistics and warehousing segment.

In 2015, the Bengaluru-based Embassy group had formed a joint venture with private equity firm Warburg Pincus to build industrial parks.

Warburg Pincus had a 70 per cent stake while the Embassy group has a 30 per cent shareholding in the joint venture firm -- Embassy Industrial Parks.

NYSE-listed Blackstone said in a statement that funds managed by Blackstone Real Estate have acquired Embassy Industrial Parks from Warburg Pincus and Embassy Group.

According to sources, the deal will be concluded in two stages.

In the first stage, Blackstone is buying Embassy Industrial Parks, having a portfolio of nearly 11 million sq ft, at an enterprise value of around Rs 1,750 crore.

In the second stage, Blackstone, through its newly acquired firm Embassy Industrial Parks, would buy few land parcels directly from the Embassy group, comprising another 11 million sq ft area, the sources said.

The sources said the deal will be worth Rs 5,250 crore.

It will involve a total portfolio to 22 million sq ft.

With the deal, Blackstone will own 40 million sq ft in warehousing space in India and will become the largest owner of warehousing and logistics space in the country. Blackstone already owns 18 million sq ft.

Property consultant Anarock facilitated the acquisition of Embassy Industrial Parks.

Blackstone said that Embassy Industrial Parks comprises 10.6 million square feet of modern Grade A logistics and warehousing assets near urban centres.

"Blackstone is among the top 10 business groups in India by total value of assets and the transaction will help reinforce the firm's leading position in office, retail and logistics," the US-based firm said.

In 2015, the Embassy group had formed a joint venture with private equity firm Warburg Pincus to build industrial parks