Global funds eye Blackstone's 50% in Panchshil and Salarpuria assets
GIC and Abu Dhabi Investment Authority (ADIA) along with two Canada-based pension funds are in talks to acquire Blackstone Group's 50% stake in two separate commercial portfolios of Panchshil Realty and Salarpuria Sattva Group, said persons with direct knowledge of the development. The deal is estimated to be concluded at an enterprise valuation of over $4.5-$5.0 billion.
The Canada Pension Plan Investment Board (CPP Investments) and The Ontario Municipal Employees Retirement System (OMERS) are the pension funds that have evinced interest in picking up the stake in this commercial real estate portfolio spread across a total 26 million sq ft in India. The portfolio includes operational assets spanning 21 million sq ft in two key commercial property markets of Pune and Hyderabad.
In addition to office properties, the portfolio also comprises a 415-key JW Marriot hotel and Pavilion Mall in Pune.«Even after selling stake in this portfolio, the US-based private equity major will continue to hold other assets jointly with Panchshil Realty and Salarpuria Sattva Group that are among the early partners of Blackstone Group in India,» said one of the persons mentioned above. The global investment major entered into a joint venture with Pune-based Panchshil Realty in 2014.
It currently holds key assets including Eon Free Zone, Tech Park One, Panchshil Business Park and ICC Tech Park in Pune along with the partner. Blackstone formed an alliance with Salarpuria Sattva Group in 2017 and has been holding prime assets such as Knowledge City, Knowledge Capital, Image Towers and Knowledge Park along with the Hyderabad-based developer.
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