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Private equity firm Blackstone on Wednesday sold 67 million shares or 8.7 per cent in Embassy REIT worth around $300 million, according to data on stock exchanges. The shares were sold at Rs 341 per unit, which is a discount of 6.51 per cent to the closing price of Tuesday. The funds raised from this trade will be used to pay back its investors.
Shares of Embassy REIT closed at Rs 356.27, down 2.33 per cent, on the BSE, on Wednesday, while the benchmark index, Sensex fell 1.58 per cent to close at 34868.98. The shares were at Rs 359.82, up 1 per cent from its previous close, while Sensex was down 0.53 per cent at 34685.33.
‘The reported transaction significantly increases Embassy REIT’s public float, enhances liquidity and diversifies our investor base. The participation from global investors demonstrates the continuing appeal of the REIT product to existing and new investors as well as the strength and resilience of our business. Blackstone continues to be the single largest investor underlining their commitment to the Embassy REIT,’ said a spokesperson for Embassy REIT.
Blackstone will continue to remain the largest shareholder in the REIT, even as its stake dropped to 46.6 per cent from 55.3 per cent. Morgan Stanley was the broker for the block deal.
Existing investors, including Capital Group, Canada-based CI Investments Inc and ICICI Prudential Asset Management Co., increased their stake in Embassy REIT by participating in the block deal. New investors added to the list are Brookfield, Nomura Asset Management, Norges Bank and Prudential Securities.
‘We continue to be big believers in India and its potential. We have significant confidence in the office sector and Embassy REIT given growing demand from domestic and global companies for Indian talent, particularly in technology hubs like Bangalore. This transaction helps diversify institutional ownership and improve liquidity. We remain the largest shareholder of Embassy REIT and are quite optimistic about its future,’ said Jonathan Gray, president and chief operating officer of Blackstone.
