Blackstone is all set to buy Adani Realty's BKC office tower for Rs 2,000 crore

US-based private equity major Blackstone Group is currently in advanced negotiations to acquire Inspire BKC, a commercial real estate project developed by Adani Realty, the Economic Times (ET) reported, citing sources.

He said The report says Blackstone is expected to invest between Rs 1,800 crore and Rs 2,000 crore in this acquisition. The project is located on the fringes of Mumbai's vibrant commercial hub, Bandra Kurla Complex (BKC), and consists of an 800,000 square feet tower.

The report adds that the real estate division of the Adani Group has been exploring options to monetize this project. The 10-storey office tower has been in operation for several years. Previous discussions have been held with local and international investors, including Brookfield India and Shapoorji Pallonji Investment Advisors.

Blackstone Group had previously expressed interest in purchasing the property. However, ET quoted sources as saying that discussions had stalled due to the onset of the Covid-19 pandemic in 2020 and uncertainties regarding demand for office space.

The tower's current anchor office tenants include Novartis and Reliance Nippon Life. Insurance, Ascendas-Firstspace Development Management and MUFG Bank.

Bhive Workspace recently acquired more than 62,000 square feet of office space across seven units at Inspire BKC through a long-term lease lasting for five years, according to a report. The terms of the lease stipulate a monthly rental rate of INR 205 per square foot, with a 15 per cent increase clause after three years.

In an earlier deal, Blackstone acquired nearly 650,000 sq ft of space in the One BKC building within the Bandra-Kurla complex in Mumbai for Rs 2,600 crore .

This acquisition included the entire A-Wing and part of the B-Wing, totaling 1.5 million square feet. The building owner, Radius Developers, has secured the property with Indiabulls Housing Finance.

In March this year, reports emerged indicating Blackstone's intention to add US$25 billion to Indian private equity assets over the next five years, underscoring the growth that... The country is witnessing. Attracting global investors.

The New York-based firm plans to increase its investment team in India by hiring 20 more professionals and doubling its office space in Nariman Point, central Mumbai, according to Amit Dixit, head of private practice. Blackstone's Asia stocks.

Dixit described Blackstone's strategic focus on building a portfolio around three core themes: infrastructure (such as data centres), energy transition (including renewables) and critical transportation sectors ( Such as airports, highways and ports.

In addition, Blackstone intends to invest in export-oriented industries and electronics manufacturing, which represent emerging sectors within the Indian economy.