KIAL to pick up stake in Embassy REIT

By Swaraj Singh Dhanjal

  • 27 Sep 2022
Credit: 123RF.com

Kotak Investment Advisors Ltd and Abu Dhabi Investment Authority-sponsored real estate fund has picked up stake worth Rs 1,600 crore in listed Embassy Office Parks REIT as the platform’s sponsor Blackstone pared its holding in the REIT through a block trade on Tuesday, said a person aware of the development. 

Blackstone planned to sell as much as 77 million units of the REIT, representing around 8.12% stake in the commercial office platform, at a floor price of Rs345 apiece, as per deal terms seen by Mint. Investment banks Bank of America, IIFL, Morgan Stanley acted as the brokers to the block trade. 

At the floor price, the stake sale will fetch Blackstone Rs 2,660 crore or $325 million.

As of 30 June, Blackstone held 31.71% of the units in the REIT. 

The investment in Embassy REIT comes from Kotak Investment Advisors Ltd’s (KIAL) 12th real estate fund to invest in commercial office properties. In June, KIAL said that it has formed a $590 million platform with a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) for this Fund, which will be domiciled in Gujarat’s GIFT City. 

At 1.30 PM, shares of Embassy REIT were trading at Rs348.55 apiece, down 0.81% on the BSE.