Black­stone may buy Adani’s BKC prop­erty

HT Estates - - FRONT PAGE - Bidya Sa­pam [email protected]

MUM­BAI: Black­stone Group LP is in talks to ac­quireA­daniRealty’s com­mer­cial of­fice project at Mum­bai’s Ban­dra Kurla Com­plex (BKC) for around ₹1,900 crore, said two peo­ple aware of the mat­ter.

The pri­vate eq­uity firm stepped in after Shapoorji Pal­lonji In­vest­ment Ad­vi­sors Pvt. Ltd backed out from buy­ing the 10-storey build­ing in Mum­bai’s lat­est fi­nan­cial district, said the two peo­ple cited above. The in­vest­ment arm of the Shapoorji Pal­lonji Group­wasthe­fron­trun­ner for the deal and even com­pleted aduedili­gence of the­p­rop­erty, they said.

“Dis­cus­sions with­Black­stone are un­der­way. Termsand­con­di­tions of the deal are be­ing ne­go­ti­ated,” said the first per­son men­tioned­above, addingth­atthedeal is likely to be closed be­fore the end of this fis­cal year.

Spokesper­sons at Black­stone and Adani Realty de­clined to com­ment. A spokesper­son of Shapoorji Pal­lonji In­vest­ment Ad­vi­sors did not re­spond to an email un­til press time.

The800,000 sq. ft project called ‘In­spire’ was­de­vel­ope­d­byA­dani Group’s real es­tate com­pany. Swiss phar­ma­ceu­ti­cals firm No­var­tis is one of the build­ing’s big­gest ten­ants, hav­ing­pickedup around 100,000 sq. ft last year.

The last cou­ple of years have seen Black­stone lap up some of the mar­que com­mer­cial prop­er­ties in In­dia.

This year, it has signed a slew of deals with In­di­a­b­ulls Real Es­tate Ltd. In March, Black­stone boughta50% stake in In­di­a­b­ulls’ flag­ship of­fice prop­er­ties in cen­tral Mum­bai—One In­di­a­b­ulls Cen­tre and In­di­a­b­ulls Fi­nance Cen­tre—for $730 mil­lion. It also boughtoutMum­bai-based­firm’s Chen­nai com­mer­cial as­set for ₹900 crore.

In BKC, Black­stone is close to buy­ingOneBKC, a1.5 mil­lion sq. ft com­mer­cial of­fice com­plex owned­byMum­bai-basedRa­dius De­vel­op­ers for over ₹2,300 crore. The­p­rop­er­tyis­con­sid­ere­do­neof the mar­que projects, hous­ing large multi­na­tional firms like Face­bookInc., Ama­zon.comInc. and Bank of Amer­ica Mer­rill Lynch, among oth­ers.

So­far, Black­stone Real Es­tate has­com­mit­ted­morethan$5.3 bil­lion across 31 in­vest­ments in In­dia.

It com­prises $3.9 bil­lion in of­fice as­sets cov­er­ing 100 mil­lion square feet.

Grade A of­fice prop­er­ties in BKC have gained in­ter­est from sev­eral in­vestors and fi­nan­cial in­sti­tu­tional firms. With­monthly rentals of around₹220-350 per sq. ft and grow­ing at an an­nual rate of 2.7%, BKC is one of the most ex­pen­sive com­mer­cial­lo­ca­tions in Mum­bai, ac­cord­ing to Col­liers In­ter­na­tional, a prop­erty ad­vi­sory firm.

Mean­while, de­spite the slow­down­intheres­i­den­tial seg­ment, de­mand for com­mer­cial of­fice space con­tin­ues to grow.

Some large com­mer­cial of­fice deals have­been­signedinthep­ast year. Sin­ga­pore-base­drealestate as­set man­agerMaple­treeIn­vest­ment Pte. Ltd signed one of the largest deals this year by­ac­quir­ing Chen­nai’s in­for­ma­tion tech­nol­o­gy­parkSPIn­foc­i­ty­for₹2,400 crore. The park is jointly owned by Canada Pen­sion Plan In­vest­ment Board (CPPIB) and Shapoorji Pal­lonji In­vest­ment Ad­vi­sors.

Other big ticket size deals in­clude Canada’s Brook­field As­set Man­age­ment Inc. buy­ing Es­sarGroup’sEquinoxBusi­ness park­for₹2,400 crore andAs­cen­das-Sing­bridge Group­buy­ingtwo up­comin­gof­fice­build­ingsinNavi Mum­bai’s Au­rum Platz IT Park for ₹930 crore.

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