Blackstone, Salarpuria in talks to jointly buy Rs 2,700-crore tech park
March 4, 2019
BENGALURU: Private equity giant Blackstone Group LLP and Salarpuria Sattva group are in talks to jointly buy Global Village Tech Park, a commercial property in Bengaluru valued at ? 2,700 crore, said two persons with direct knowledge of the development.
The tech park is spread over 120 acres in Bengaluru. The firm is into development of technology parks in Bengaluru and Mangaluru.
“Salarpuria Sattva and Blackstone are exploring opportunities to jointly buy the commercial property. Blackstone is already in advance talks with Café Coffee Day founder VG Siddhartha to buy the commercial property,” said one of the person quoted above.
Blackstone and Sattva Salarpuria refused to comment on the likely partnership.
Global Village Tech Park with a total built up area of 3.3 million sft has Mindtree NSE -1.23 %, Mphasis NSE -1.10 % and Accenture amongst its clients. “The park has some portion of unbuilt land that has additional development potential of 5 million sq ft So far, only 45 acres have been built,” said another person in the know.
Separately, Blackstone and Sattva already have a business relationship. In 2018, Blackstone invested ? 700 crore in Salarpuria Sattva’s two office parks in Hyderabad. The total development area under the Blackstone-Salarpuria Sattva platform has increased to 13 million sq ft in Hyderabad.
“There is a possibility to extend this relationship further as both Salarpuria and Blackstone are looking to acquire assets across geographies,” said the person quoted first.
In the largest commercial asset transaction last year, Mapletree Investment, a Temasek-owned real estate asset manager, acquired information technology park SP Infocity in Chennai for ? 2,350 crore.
Blackstone Group LLP, the largest investors of commercial portfolio in India, with over 56 million sq ft portfolio. It owns India’s biggest portfolio of income-producing office assets, totalling over 31million sq ft across key property markets of Noida, Mumbai, Pune and Bengaluru.
The firm recently entered into a definitive agreement to buy 50% stake in two of its flagship commercial properties having 4.2 million sq ft of leasable space and are currently fully-leased.
Institutional investors, including private equity, sovereign wealth and pension funds, have been increasingly showing interest in picking up income-producing commercial real estate assets in India.
Given the ongoing transformation in business environment led by structural reforms, Indian real estate is witnessing a robust rise in investment inflow as foreign and domestic institutional investors pump in more funds into the sector.