A three way partnership between Blackstone, a US-based non-public fairness agency, and Sattva Group, a distinguished actual property developer from Bengaluru, has filed a draft crimson herring prospectus (DRHP) on Thursday for what is claimed to be India’s largest Actual Property Funding Belief (REIT) IPO. The REIT named Data Realty Belief goals to lift roughly Rs. 6,200 crore (round $712.55 million) by means of its preliminary public providing.
Data Realty Belief REIT IPO
Data Realty Belief would be the largest in India by way of internet working earnings (NOI) and gross belongings worth (GAV). The belief has a gross asset worth of almost Rs. 60,000 crores, and the DRHP doesn’t specify an actual itemizing date, in response to sources. The three way partnership, Data Realty Belief, is 55 p.c owned by Blackstone, with Sattva Group holding the remaining 45 p.c stake, as detailed within the prospectus.
As soon as listed, Data Realty Belief will turn out to be India’s fifth publicly traded REIT and can boast a complete leasable house of 48 million sq. toes, making it the second-largest REIT in Asia by way of dimension. The itemizing is managed by distinguished bookrunners, together with Financial institution of America and Morgan Stanley.
From the entire subject dimension of Rs. 6,200 crores, Rs. 5,800 crores might be used for the partial or full compensation of excellent money owed, that are primarily tied with some asset particular function automobiles (SPVs) and funding entities inside the portfolio. As of thirtieth September 2024, the entire debt throughout these entities quantities to Rs. 20,197 crore, with Rs. 19,901 crore attributed to the entire quantity of excellent loans from banks and non-banking monetary firms (NBFCs).
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Blackstone REIT IPO Overview
Blackstone’s world actual property portfolio was valued at roughly $602 billion as of September 2024. This might be Blackstone’s fourth REIT IPO in India. The corporate first entered the Indian REIT market in 2019 with the Embassy Workplace Parks REIT, elevating Rs. 4,750 crore. It adopted up with the Mindspace Enterprise Parks REIT in 2020, which raised Rs. 4,500 crore. Brookfield REIT and Nexus Choose Belief additionally tapped the market in 2021 and 2023, elevating Rs. 3,800 crore and Rs. 3,200 crore, respectively.
Notably, Blackstone exited its $833 million funding in Embassy Workplace Parks in December 2023, which was India’s first publicly listed REIT. The 95 p.c of belongings below the present REIT are predominantly concentrated in India’s high workplace markets: Mumbai, Bengaluru, and Hyderabad, whereas round 90 p.c of the REIT’s portfolio is leased, with 76 p.c of its tenants being multinational firms.
Written by Shivani Singh
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