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Embassy group in talks with Blackstone to sell warehouse biz for Rs 1,800 cr enterprise value
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Embassy group in talks with Blackstone to sell warehouse biz for Rs 1,800 cr enterprise valuePTI
Last Updated: Apr 09, 2021, 05:32 PM IST
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In 2015, the Bengaluru-based Embassy group had formed a joint venture with private equity firm Warburg Pincus to build industrial parks. Warburg Pincus has a 70 per cent stake while the Embassy group has a 30 per cent shareholding in the joint venture firm Embassy Industrial Parks.
Agencies
Embassy Group already has around 14 per cent stake in Mumbai-based IBREL, which is part of the Indiabulls group.
Realty firm Embassy group is in the advance stage of talks with global investment firm Blackstone to sell its warehousing and industrial parks business at an enterprise value of around Rs 1,800 crore, sources said. In 2015, the Bengaluru-based Embassy group had formed a joint venture with private equity firm Warburg Pincus to build industrial parks. Warburg Pincus has a 70 per cent stake while the Embassy group has a 30 per cent shareholding in the joint venture firm Embassy Industrial Parks. According to sources, the Embassy group is in discussion with the Blackstone group for the complete divestment of the JV firm.
Embassy group in talks with Blackstone to sell warehouse biz for Rs 1,800 cr enterprise value freepressjournal.in - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from freepressjournal.in Daily Mail and Mail on Sunday newspapers.
Yields in warehousing assets have fallen to 7.5 per cent from 8.5 per cent in the past two years as more global players race to invest in such assets in the middle of the pandemic. “Yield” is the estimated return from an investment. It is calculated by dividing the annual rental income earned by a property by the price paid for the property. Investors prefer warehousing assets because they are more stable than office properties, which were affected by the pandemic, said bankers involved in warehousing deals. Last month, Singapore-listed Mapletree Logistics Trust bought two warehousing properties in Pune from a unit of Morgan Stanley Real Estate Investing (MSRI) and another entity at Rs 450 crore.
Blackstone Group is in exclusive talks to acquire a minority stake in Sify Technologies, according to people with knowledge of the matter. The communications infrastructure firm has sought a valuation of around $1 billion to $1.2 billion in a transaction, said the people, who asked not to be identified because the talks were private. It’s unclear what valuation the Blackstone stake purchase will be struck at and talks could still fall apart. Sify’s American depositary receipts rose 6.7 per cent in pre-market trading on Friday in the US. The company had a market value of about $484 million as of Thursday. Representatives for Blackstone and Sify declined to comment.