Blackstone signs non-binding agreement to buy prestige's assets

Indian developer Prestige Estates Projects said Blackstone Group signed a non-binding agreement to buy some of its assets.

The deal will include the sale of "commercial offices, retail and hotel properties, mall management and identified maintenance businesses", the developer said in a stock exchange filing on Saturday.

The US private equity company is in advanced talks to acquire Prestige Estates's rent-yielding assets, including offices and operating malls, for US$2 billion, Bloomberg reported on Friday, citing people who asked not to be identified as the discussions were private.

Blackstone is the largest commercial real estate owner in India, with a total investment of around US$7.8 billion as of March 2020. It has built its portfolio over more than a decade, buying up more properties as India's economy slowed in recent years. Two real estate investment trusts backed by Blackstone have also been listed in India.

Blackstone will have exclusivity in relation to the deal, and the closing of the transaction will be subject to conditions including the completion of due diligence and approvals, according to the filing. Prestige Estate is one of the largest developers in southern India. It has about 45 existing projects spanning 52 million square feet (sq ft), with another 57 million sq ft under construction.

BLOOMBERG