Blackstone Inc is set to file the preliminary papers for the introduction of its office-based real estate investment trust (REIT) in India in February, sources revealed. This REIT, with a projected size of $700-750 million, will be the largest in the country. The US-based asset manager has reportedly appointed Kotak Mahindra Capital Company as the lead investment banker for the endeavor.
The REIT is expected to include approximately 50 million square feet of assets under Blackstone’s Nucleus Office Parks and those developed jointly with Bengaluru-based real estate developer Sattva Group. Assets from the joint venture between Blackstone and Panchshil Realty will not be part of the REIT portfolio.
Blackstone currently holds a portfolio of 20 million square feet under Nucleus and has a joint portfolio of 32 million square feet with Sattva Group, of which 18 million square feet are completed. The Nucleus Parks properties are spread across five cities, including Mumbai, Gurugram, Chennai, Bengaluru, and Ahmedabad.
The joint projects between Blackstone and Sattva Group include Knowledge City and Knowledge Park in Hyderabad, as well as Sattva Global City in Bengaluru, which was acquired from Coffee Day Enterprises. The majority of Sattva Global City is owned by Blackstone.
As of now, there are four listed REITs in India with assets under management totaling ₹1.2 lakh crore and a market capitalization exceeding ₹75,000 crore, covering a portfolio of 113.5 million square feet. Three of these REITs are office-based, while one is retail-based.