Blackstone Sells $1.25B Stake in India’s Knowledge Realty Trust
By Business Desk
Blackstone Inc. plans to divest up to $1.25 billion in India’s Knowledge Realty Trust via an offer for sale, its largest transaction this year, with units priced at a discount.
Blackstone Inc. is preparing to sell a substantial stake, valued at up to $1.25 billion, in India’s Knowledge Realty Trust. This divestment will proceed through an offer for sale, representing the firm’s largest such transaction executed this year.
The sale encompasses up to 11.1 million units, which collectively represent a 25.03% stake in the real estate investment trust. The offering is scheduled for August 31 for non-retail investors, with retail investors able to participate on September 1.
A floor price of 108 rupees per unit has been set for the offering. This price indicates a 4.7% discount compared to Friday’s closing price, and a 13% discount when measured against its net asset value.
Financial Details and Ownership Shift
The initial deal is estimated to be approximately 79.9 billion rupees, equivalent to $838 million. This transaction also includes an additional greenshoe option valued at 39.96 billion rupees.
Should the greenshoe option be fully exercised, Blackstone’s ownership in Knowledge Realty Trust will decrease significantly. Its stake will fall from the current 46.5% to 21.5%.
Consequently, the Sattva Group, Blackstone’s joint venture partner, is poised to become the largest shareholder. The group will then hold a 32% stake in the trust.
Knowledge Realty Portfolio Overview
Knowledge Realty commenced its listing operations in August of the previous year. The trust currently oversees a portfolio comprising 29 business corporate parks.
These assets are strategically distributed across six major cities within India. The divestment signifies a notable portfolio adjustment for Blackstone within the Indian market.