K Raheja Corp, a well-known developer along with the Blackstone Group, a US private equity firm have signed the deal to raise approximately $500 million by listing their jointly owned commercial business as a real estate investment trust (REIT), sources said. In Indian rupees, the companies will raise nearly over Rs. 3,500 crores.
Under this joint venture, the companies are likely to submit papers to the capital market regulator within a month most likely by the closing of the first quarter of 2020, the sources close to the development said. Presently, Blackstone’s another joint venture i.e. Embassy Office Parks REIT is listed on the Indian REIT and has raised Rs. 4,750 crore in April.
In 2017, Blackstone assimilated15% stake in K Raheja Corp’s selected commercial portfolio that covers 30 million sq ft area.
From the part of K Raheja Corp’s total commercial development, Grade-A office spaces spread over approximately eight IT Parks in cities like Mumbai Metropolitan Region, Pune, Hyderabad, Bengaluru and Chennai are included for REIT.
K Raheja Corp, is the second biggest developer of commercial parks in India and is seen as an important contender for listing on the Indian REIT. This Mumbai-based company has a strong presence in the western and southern India under the brand name of Mindspace and Commerzone.
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