Indiabulls Realty climbs 3% as Blackstone looks to acquire commercial assets
Indiabulls Real Estate’s total net debt stood at Rs 4,590 crore at the end of FY19.
By ETMarkets.com | Updated:
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NEW DELHI: Shares of Indiabulls Real Estate climbed 3 per cent in Wednesday’s trade after Blackstone Group signed a term sheet to acquire the remaining 50 per cent stake in Indiabulls Real Estate’s commercial properties for over Rs 4,420 crore, said persons with direct knowledge of the development.
Blackstone declined to comment and Indiabulls Real Estate too didn’t respond to queries.
The stock climbed 3.26 per cent to hit a high of Rs 66.35 on BSE, erasing a 2.8 per cent fall it witnessed in the previous two trading sessions.
Indiabulls Real Estate’s total net debt stood at Rs 4,590 crore at the end of FY19.
The transaction is part of the Indiabulls Group’s strategy of exiting real estate completely and focusing on financial services as it seeks to merge with Lakshmi Vilas Bank. Also, Indiabulls Real Estate is planning to utilise the proceeds from this deal to repay its debt and bring it down to zero.
Apart from controlling 50 per cent stake in this 5-million-sq-ft commercial portfolio — including two marquee properties in Mumbai’s Lower Parel and Prabhadevi areas and one in Gurgaon — Blackstone had also acquired a 100% stake in the developer’s Chennai commercial property for around Rs 850 crore last year.
The shares of the company closed 0.23 per cent higher at Rs 64.40 on BSE.
Blackstone declined to comment and Indiabulls Real Estate too didn’t respond to queries.
The stock climbed 3.26 per cent to hit a high of Rs 66.35 on BSE, erasing a 2.8 per cent fall it witnessed in the previous two trading sessions.
Indiabulls Real Estate’s total net debt stood at Rs 4,590 crore at the end of FY19.
The transaction is part of the Indiabulls Group’s strategy of exiting real estate completely and focusing on financial services as it seeks to merge with Lakshmi Vilas Bank. Also, Indiabulls Real Estate is planning to utilise the proceeds from this deal to repay its debt and bring it down to zero.
Apart from controlling 50 per cent stake in this 5-million-sq-ft commercial portfolio — including two marquee properties in Mumbai’s Lower Parel and Prabhadevi areas and one in Gurgaon — Blackstone had also acquired a 100% stake in the developer’s Chennai commercial property for around Rs 850 crore last year.
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The shares of the company closed 0.23 per cent higher at Rs 64.40 on BSE.
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