Private equity firm Blackstone Group Lp and Indiabulls Real Estate Ltd (IBREL) is planning to develop a commercial properties platform with rent-yielding assets, reported Mint.
In March, both the companies entered in to a joint venture with Blackstone buying a 50 percent stake in IBREL. The new joint venture will now add six office assets on the platform within the next three to six months, of which three will be jointly acquired and the remaining would comprise projects already being developed by IBREL, the report said.
IBREL will not pursue its earlier plan to carve out a separate entity for its commercial office business, given its new partnership with Blackstone, the daily said, adding that in 2017, the company’s board had decided to create a new vertical to house its residential business and the new entity — Indiabulls Commercial Assets Ltd (IBCAL).
The residential business would continue to remain with IBREL and IBCAL would hold existing leasing and commercial assets, as well as future projects, added the report.
“Instead of IBCAL, the platform with Blackstone will house the office assets. Investment decisions to sell will be taken by IBREL, while buying decisions will be taken by the Blackstone board. At some point in time, the partners may consider to list the assets as a REIT (real estate investment trust) depending on how the REIT model plays out in India,” a person familiar with the development was quoted as saying in the report.