Blackstone acquires Prestige’s retail & commercial assets, concludes deal at $1.5 bn: Report
American investment management company, Blackstone Group, has concluded its $1.5 billion acquisition of realty developer Prestige Group’s commercial portfolio, including offices, retail malls and hotel assets, according to a report by the Economic Times.
The deal will see Blackstone acquire over 16.8 million sq ft of completed and under-construction office projects and retail malls including hospitality assets.
Bengaluru-based Prestige had signed term sheets in November 2020 with the Blackstone group. A month before that, Prestige Estates signed a non-binding letter of intent with Blackstone Group entities for the sale of certain direct and indirect interest in certain commercial offices, retail and hotel properties, mall management and identified maintenance business.
In a regulatory filing in November 2020, the Prestige group gave a list of assets to be sold under this deal. This included
- The sale of up to 100% stake in 6 entities holding completed office assets
- 85-87% stake in 9 entities owning 9 malls. It also
- Up to 50% of the rights and interest in 4 entities owning under-construction office assets
- Sale of up to 85% in its hotel Oakwood Residences and up to 100 percent in hotel Aloft.
Blackstone will also acquire solar power plants, which will generate energy for these assets, once they are completed, the ET report stated citing unnamed sources.