Indiabulls en route to real estate exit

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Indiabulls

Indiabulls Real Estate and its subsidiaries have sold their entire stake in Mariana Infrastructure to Blackstone Group for ₹8 billion (US$112 million).

“This sale was part of the overall strategy of Indiabulls to exit commercial real estate,” said J Sagar Associates (JSA) partner Lalit Kumar, whose firm advised Indiabulls and its subsidiaries. “It is also part of Indiabulls’ decision to achieve zero net debt in the current financial year.” Mariana owns a commercial project in Gurugram and a land parcel in Mumbai.

Indiabulls has previously sold real estate assets to the real estate private equity firm. In March 2018, it executed an agreement with Blackstone to divest 50% stake in Indiabulls Properties Private Limited (IPPL) and Indiabulls Real Estate Company Private Limited (IRECPL) at an aggregate enterprise value of US$1.4 billion.

In July 2018 Indiabulls announced the sale of One Indiabulls Park, in Chennai, to Blackstone. Blackstone then took full control of IPPL and IRECPL in September 2019, after Indiabulls divested its remaining 50% stake in the companies for an aggregate equity value of ₹27 billion.

“Since both parties have done similar deals in the past, that helped in this deal,” said Kumar. “Generally, when the same parties have done several similar deals, they understand the expectations of each other better, and it generally helps in better closing of the deal.”

The JSA team comprised partners Lalit Kumar and Bharat Bhushan Sharma, associate Amandeep Singh Virk and junior associate Aakanksha Mehta. Shardul Amarchand Mangaldas & Co advised Blackstone, and Kirkland & Ellis acted as international legal counsel.