Indiabulls to sell Chennai commercial assets to Blackstone for Rs 8.5 bn

Indiabulls Real Estate has executed a definitive agreement with global private equity investor Blackstone Group to sell its commercial assets in Chennai for Rs 8.5 billion.

"...The company's board constituted committee has today authorised execution of definitive transaction document(s) with the entities controlled by the Blackstone Group L.P...by which the company will divest its 100 per cent stake in the business of commercial assets at Ambattur, Chennai," Indiabulls Real Estate said in a BSE filing.

India Bulls Real Estate said the assets sold are non-core real estate business operations for the company and will realise a gross value of approximately Rs 8.5 billion, subject to adjustments, if any, basis certain assets and liabilities on closing (transaction).

Subject to satisfaction of closing conditions, the transaction is to be completed in tranches by September 30, 2019.

In February this year, Indiabulls Real Estate had announced plans to sell its housing and commercial assets in Chennai as part of strategy to exit non-core market and restructure its business.

"The transaction is pursuant to and in terms of company's shareholders' authorisation...to facilitate re-organisation of company's commercial leasing business in India for achieving sustainable growth and for further strengthening of its on-going businesses, in its core markets," it added.