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ADIA invests $235 mn in Mindspace REIT;  Blackstone makes full exit
Photo Credit: 123RF.com

Global asset management firm Blackstone Inc on Monday sold its balance 9.2% stake in real estate investment trust Mindspace Business Parks REIT for $235 million to Abu Dhabi Investment Authority (ADIA), according to two people familiar with the development. 

Mindspace REIT is sponsored by Mumbai-based real estate firm K Raheja Corp. and Blackstone, which was a minority shareholder. 

Blackstone had acquired a 15% stake in a clutch of office projects of K Raheja Corp. in March 2017. It sold a part of its stake for $100 million at the IPO and retained 9.2% stake in the REIT.

Blackstone, currently the largest commercial office space owner in the country, on Monday sold the 9.2% stake in a block deal at a price of Rs 320 per unit, which is a 16% premium over the August 2020 price of Rs 275 per unit during Mindspace’s public listing.

In August 2020, Mindspace Business Parks was listed as India’s second real estate investment trust or REIT, after the Embassy REIT listing in 2019.  

The $600 million Mindspace IPO was listed on the stock exchange in 2020, soon after the country came out of an unprecedented lockdown owing to the pandemic, and was well-received with broad-based interest from both international and domestic investors. The REIT had 10 Grade-A office assets totalling 31 million sq ft located across key office markets. 

“Blackstone has emerged as the most aggressive institutional investor in India with overall assets under management estimated to be $60 billion across various sectors, making it one of the top 10 business groups in the country. Real estate accounts for nearly $20 billion of this market value across its 42 investments. It is the largest office and retail assets owner in India with an office portfolio of 135 million sq ft and over 16 million sq ft of retail space and 40 million sq ft of logistics space,” said a person familiar with the development, who didn’t wish to be named. 

The asset manager scored a 20% return on its investment in Mindspace, the person cited above said. 

Spokespersons from Blackstone and K Raheja Corp declined to comment. ADIA could not be  immediately reached. 

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