Skip to main content

Blackstone-Panchshil Realty JV in early-stage talks for REIT IPO

If the plan fructifies, this would be the third REIT IPO in India backed by Blackstone, after Embassy Office Parks and Mindspace.

Blackstone, the largest owner of commercial real estate in India and Pune-based luxury property developer Panchshil Realty are evaluating a potential monetization of their joint venture assets via the real estate investment trust (REIT) route, sources with knowledge of the matter told Moneycontrol. If the proposed plan fructifies, it would be a hat-trick of REIT IPOs backed by Blackstone in India. Previously, the US private equity giant has launched the Embassy Office Parks REIT and the Mindspace REIT which it backs along with developer K Raheja Corp.

“These are very early days as structuring and reorganisation of the joint portfolio needs to be done to make it REIT ready, but preliminary discussions have begun for a listing of the commercial assets. There is no clarity yet on the issue size as they are mulling on the assets to be added to the REIT, “ said one of the individuals cited above.



“Panchshil Realty is one of the largest real estate developers in Pune with good assets in strategic locations. In all probability, most of the joint venture assets in Pune may be monetized but to ensure geographical diversification for investors, a few from Mumbai may also be added. This latest REIT offering is likely to be launched in 2021,” said a second individual.

Both the individuals spoke to Moneycontrol on the condition of anonymity. When contacted, Blackstone declined to comment. Moneycontrol is awaiting an email response from Panchshil Realty and its MD Atul Chordia and has sent reminders. This article will be updated as soon as we hear from the firm.

Established in 2002, Panchshil Realty has delivered over 23 million sq. ft. of real estate, with 20 million sq. ft. under development across multi-asset classes.  Its portfolio includes commercial, residential, hospitality , retail and f&b assets in Pune, Mumbai and South Delhi and its clients include the likes of Barclays, Citi, Dell, Deloitte, IBM, TCS, Hyundai, Bajaj Group and others. According to reports, Panchshil Realty and Blackstone jointly own prime office assets like Eon Free Zone

(India’s first notified SEZ in Pune’s Kharadi area ), First International Finance Centre, BKC, Mumbai and the iconic Indian Express Towers in South Mumbai.

The rise of the REIT regime

A real estate investment trust is a company that owns and operates income-producing properties or real estate. Modelled after mutual funds, REITs pool the capital of numerous investors and generate a steady income for their investors. REITs own many types of commercial real estate, ranging from office and apartment buildings to warehouses, hospitals, shopping centres and hotels.

In June 2020,  Blackstone raised around $300 million by selling some of its units in Embassy Office Parks Real Estate Investment Trust (REIT) to show a partial exit to its investors.  Later, on September 30, 2020, Moneycontrol reported that Blackstone's rival Canadian investment giant Brookfield Asset Management had filed documents with market regulator Sebi to raise around Rs 4000-Rs 4500 crore via REIT IPO.

According to experts tracking the segment, the low-interest rate regime, successful listing of earlier REITS, availability of top-notch sponsors, managers and portfolios, flight to safety (income yielding products) during the pandemic, the potential for stable income generation and strong occupancies in the office market are some of the key factors that have made REITs a popular instrument amongst both global and Indian investors.

Comments

Post a Comment

Popular posts from this blog

Reliance Jio Q3 results: Profit grows to Rs 3,489 crore; ARPU rises to Rs 151

  The average revenue per user (ARPU) during the quarter came at Rs 151 per subscriber per month as against Rs 145 per subscriber per month in the September quarter. Reliance Jio, the telecommunications arm of Jio Platforms, on January 22 posted a net profit of Rs 3,489 crore for the quarter ended December 31, 2020. The profit was higher than the street expectations as analysts in a CNBC-TV18 poll had estimated the number at Rs 3,200 crore. Jio's net profit grew 15.5 percent QoQ as in the September quarter of FY21, its profit was Rs 3,020 crore. The average revenue per user (ARPU) during the quarter came at Rs 151 per subscriber per month as against Rs 145 per subscriber per month in the September quarter. A CNBC-TV18 poll had estimated ARPU at Rs 148.2. Revenue, including access revenues for the quarter, was Rs 22,858 crore ($3.1 billion), up 5.3 percent QoQ. A CNBC-TV18 poll had estimated revenue to the tune of Rs 18,165 crore. EBITDA for the quarter stood at Rs 8,483 crore ...
Post a Comment
Read more

Futures Trade | A bullish breakout of a flag pattern in HDFC

HDFC is moving in an uptrend with a minor corrective decline. The range is classified as a flag and a breakout of falling minor trendline confirms a possible upside. HDFC is moving in an uptrend with a minor corrective decline from Nov 20 highs. The decline is on lower, contracting volumes and suggests a correction within an ongoing trend. The range-bound action can also be classified as a flag as it is on coming off a sharp rally. A breakout of falling minor trendline confirms a possible upside. Buy around Rs 2300-2310. Keep a stop below Rs 2250 and hold for a target of Rs 2400 and above that to Rs 2450.
Post a Comment
Read more

Taking Stock | Profit-booking pulls Nifty below 14,450; Sensex drops 549 points

  All the sectoral indices ended in the red with IT and PSU bank indices falling 2 percent each. The market remained under pressure on January 15 on the back of profit-booking across sectors amid weak global cues. At close, the Sensex was down 549.49 points or 1.11% at 49,034.67, and Nifty was down 161.90 points or 1.11% at 14,433.70. "The market witnessed profit-booking and following global trends. Nifty continues to resist 14,600 and has taken a dip towards 14,360. If the market closes below 14,380 levels, we might see a correction till the levels of 14,180-14,200. Momentum indicators like RSI, MACD are indicating a small correction in the markets," said Ashis Biswas, Head of Research at CapitalVia Global Research. All the sectoral indices ended in the red with IT and PSU bank falling 2 percent each. Broader markets performed in line with the main indices with BSE Midcap and Smallcap indices falling 1 percent each. Tech Mahindra, GAIL, HCL Tech, Wipro and ONGC...
Post a Comment
Read more