InvestorQ : Is it true that Blackstone plans to exit from the Embassy REITs it floated last year on the stock market?
Moii Chavate made post

Is it true that Blackstone plans to exit from the Embassy REITs it floated last year on the stock market?

Answer
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Sam Eswaran answered.
4 months ago


Global investor Blackstone will not be selling its entire stake but only part of its stake in the Embassy REITS. It plans to sell stake worth $257 million via a block deal. At present, along with the Embassy group, Blackstone owns 55% in the REIT. This sale proposed will be to the tune of 7% of the capital of the Embassy REITS overall.

Blackrock will be looking at a price band of Rs.340 to Rs.350 per share for this sale, which is expected to happen at the earliest. The REIT has been among the better performers since its listing last year. The REIT is up nearly 25% in the last one year. A REIT represents a portfolio of commercial real estate assets and works akin to a mutual fund with SPV status.

Blackrock is worried that the REIT could come under pressure with flexible working options and WFH, post COVID-19. IBM is planning to end lease contracts for half its offices in India. IBM contributes 12% of overall revenues of Embassy REITS as it has leased close to 3.6 million SFT of office space from Embassy. Blackstone sees this as a major trend shift.