US-based Blackstone Group has purchased 7,00,000 sq feet prime office space in the One BKC building in Mumbai’s Bandra-Kurla Complex (BKC) for Rs 2,500 crore, in possibly the largest single-building deal in the country.
The private equity firm will acquire the space from Radius Group in the high-profile 1.5 million sq ft One BKC project, located in the heart of Mumbai’s financial district.
Blackstone has bought the project’s A wing, which boasts of 650,000 sq ft of office space and fully leased to tenants such as Facebook, Bank of America, Trafigura Group, Brookfield and Amazon. It is also acquiring 50,000 sq ft in the B wing.
“As per the terms of the deal, the developer (Radius) will also hold an option to buy back 40% of the area being sold now. The call option for this 40% area can be exercised anytime over the next two years,” a source told The Economic Times.
“The buyback will be concluded at prevailing market rates at that point of time,” the source added.
Radius will reportedly use the money to repay Rs 1,650 crore it owes to Indiabulls Housing Finance and Rs 550 crore to the Mumbai Metropolitan Region Development Authority (MMRDA) as the remaining premium for the additional Floor Space Index (FSI).
While Blackstone and Indiabulls Housing Finance declined to comment on the development, a Radius spokesperson confirmed that the deal had been struck. The deal is expected to conclude by the end of this month.
Earlier deals like the one between DLF-GIC for USD 1.9 billion and Hiranandani-Brookfield deal of USD 1 billion were bigger in size but involved a portfolio of assets.
The Blackstone-Radius deal, however, is possibly the largest for a single asset and the biggest in BKC.
Blackstone has invested across more than 50 companies in India and owns the country’s biggest portfolio of income-producing office assets across key property markets of Mumbai, Noida, Pune, Bengaluru, Chennai, and Hyderabad.Back to latest news