Embassy Office Park shares fall 5% on Blackstone Group’s likely exit via block deal

Share of Embassy Office Park REIT fell nearly 5% on Wednesday following a block deal where global private equity firm Blackstone Group was set to sell its entire stake on Wednesday, according to news reports.

The shares however, pared their losses as the session proceeded and at 11:20 the Embassy Office was down by 0.22% and trading at Rs 335 on the NSE. Over 63.89 lakh shares were trading on the NSE around this time. The traded value of the shares stood at Rs 209.84 crore.

The report said that Blackstone intends to sell its entire 23.6% stake in a deal worth around $830 million.

The floor price for the sale has been set at Rs 310 a share, and Kotak Mahindra Capital and IIFL Capital are the advisors to the mega deal. The floor price is at a discount of nearly 8% to the current market price. The units of Embassy Parks REIT ended 3.4% higher on the BSE at Rs 335.54.

Co-sponsored by the Blackstone Group and Embassy Group, Embassy Office Parks REIT is India’s first real estate investment trust (REIT) to be listed in April 2019.

If the deal goes through on Wednesday, it will be the fourth time that the global PE firm will be trimming its exposure to the REIT through block deals.

In June 2020, it had raised over $300 million by selling an 8.7% stake in the listed entity. Then in December 2020, Blackstone and Embassy sold Embassy TechVillage, an integrated office park in Bengaluru, to Embassy Office Parks REIT.Apart from this, a fundraising exercise by the REIT through a QIP had lowered Blackstone’s holding in the REIT to 38% from over 46%.

In September last year, Blackstone sold a partial stake in the listed entity through the open market.

Embassy REIT owns and operates a portfolio of eight infrastructure-like office parks and four citycentre office buildings in India’s key office markets of Bangalore, Mumbai, Pune, and the National Capital Region. Its portfolio comprises completed operating areas and counts over 190 global companies as occupiers.

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