Embassy REIT block deal: Kotak Realty Fund invests $200 million in Embassy REIT by block deal

MUMBAI: Kotak Realty Fund has invested $200 million or Rs 1,600 crore in India’s maiden Actual Property Funding Authority (REIT) Embassy Workplace Parks REIT. The fund has picked up stake within the REIT by a block deal that occurred in early commerce this morning, mentioned individuals with direct data of the event.

The transaction is a part of the block offers being undertaken by Blackstone Group that’s trying to increase round $400 million by promoting its stake within the REIT.

Alternate property funding main Kotak Funding Advisors has invested the cash from its twelfth actual property fund that has not too long ago raised over $590 million and counts sovereign wealth fund Abu Dhabi Funding Authority (ADIA) as a key associate.

ET had reported final week that the US-based personal fairness main is planning to lift round $400 million or over Rs 3,200 crore by promoting a part of its stake in Embassy Workplace Parks REIT this week.

ADIA was prone to be collaborating in these block offers and selecting up a stake value $200 million.

Earlier this yr, Kotak Funding Advisors has fashioned an alliance with a wholly-owned subsidiary of ADIA to arrange this $590 million or almost Rs 4,600-crore actual property funding platform.

The fund, which might be domiciled in Gujarat’s GIFT Metropolis, might be investing in workplace property throughout India specializing in the highest six property markets of Mumbai, Bangalore, Delhi-NCR, Pune, Hyderabad and Chennai.

With this, Kotak Funding Advisors had achieved closure of its twelfth actual property fund and has raised, managed or suggested greater than $2.8 billion underneath its actual property fund sequence.

Calls and messages to Kotak Funding Advisors and Blackstone spokespersons remained unanswered.

That is the third time Blackstone has trimmed its stake in Embassy Workplace Parks REIT since its itemizing in April 2019.

In September 2021, too, the worldwide personal fairness fund had trimmed its stake in Embassy Workplace Parks REIT by block offers.

The institutional investor then raised $275 million by promoting an round 6% stake. The transactions diminished Blackstone’s stake within the REIT to 32%, from 38% beforehand.

Previous to the 2021 stake sale, Blackstone had $1.7 billion value of publicity in Embassy Workplace Parks REIT. Blackstone had then offered shares at Rs 355.20 a unit.

Institutional traders and funds, together with

Arbitrage, American Funds World Balanced Fund, Stichting Depositary APG Tactical Actual Property Pool and Built-in Core Methods (Asia) have been among the many key entities that had purchased these items in block trades.

In June 2020, it had raised over $300 million by promoting an 8.7% stake.

Co-sponsored by the Blackstone Group and the Embassy Group, Embassy Workplace Parks REIT was listed in April 2019.

In December 2020, Blackstone and Embassy offered Embassy TechVillage, an built-in workplace park in Bengaluru, to Embassy Workplace Parks REIT. Other than this, a fundraising train by the REIT by a professional institutional placement at the moment had lowered Blackstone’s holding within the REIT to 38% from over 46%.

Embassy REIT owns and operates a 42.4 million sq ft portfolio of eight infrastructure-like workplace parks and 4 city-centre workplace buildings in India’s key workplace markets of Bengaluru, Mumbai, Pune and the Nationwide Capital Area. Its portfolio includes 32.3 million sq ft of accomplished working space and counts over 190 world firms as occupiers.

Blackstone is the biggest workplace, retail and warehousing landlord in India and has deployed over $11 billion within the nation’s business actual property to date.