Blackstone in talks to buy two office towers in Central Delhi
NEW DELHI: American PE fund Blackstone is in talks to acquire two commercial office towers in central Delhi from Parsvnath Developers and PE fund Red Fort Capital for Rs 550 crore, said two people with knowledge of the development.
The two towers on Bhai Veer Singh Marg, which is near Connaught Place, have around 300,000 sq ft of space, much of which has been leased to the likes of SBI, AXIS Bank, Aditya Birla Group and Regus.
The building gets an average rental of Rs 250 per sq ft per month, the persons cited earlier said. “Blackstone has signed a term sheet for the deal with the sellers, though there are still some clearances that need to be taken,” one of the persons cited earlier said.
The Delhi Metro Rail Corporation (DMRC) had leased the 5 acre land parcel to Parsvnath in 2010 for the office project. This included an upfront payment of Rs 99.5 crore.
The same year, the builder sold 24.5% stake in the project to Red Fort Capital for Rs 120 crore, naming the project ‘Red Fort Capital Parsvnath Towers’.
“Since a no-objection certificate is yet to be taken from DMRC, Blackstone will give a loan against this asset in the form of NCDs to the sellers. Once the NOC is received, they will acquire the asset formally,” one of the persons quoted earlier said. Blackstone, Parsvnath and Red Fort Capital declined to comment.
This isn’t Blackstone’s first buy in the national capital region. In 2014, it had acquired a 1.5 million sq ft IT SEZ in Noida, called ‘Oxygen’, from The 3C group for Rs 625 crore.
Last year, the fund completed its first full buyout of a real estate company in India, picking up 100% stake in Gurgaon-based builder Alpha G: Corp. In its first investment in 2016, it recently pumped in Rs 450 crore in an under-construction commercial office property in Hyderabad being developed by Salarpuria Sattva Group.
This transaction is unlike any of its other investments where it has picked up completed, rent-yielding assets rather than taking the development risk. In the current transaction, Blackstone has gone solo rather than co-investing with either Pune-based Panchshil Realty or Bengaluru-based Embassy group, as it has done in the past.