A joint venture (JV) including U.S. private equity firm Blackstone Group Lp and Indian property developer Embassy Group plans to acquire a stake in Indiabulls Real Estate Ltd. (IBREL), a real estate company, for about 2,700 crore rupees ($389 million).
The Blackstone-Embassy joint venture intends to buy a 39 percent stake in IBREL from Indiabulls Group, enabling the company to focus entirely on financial services, at an equity valuation of $1 billion.
Once the acquisition is completed, a quarter of IBREL will be held by foreign institutions while the remainder will be with public shareholders and mutual funds among others.
Additionally, on closure, the transaction will give Embassy and Blackstone access to IBREL’s residential assets too, which can be merged with Embassy’s residential portfolio.