Blackstone to Sell Up to $1.25 Billion Stake in Indian Realty Trust

Blackstone Inc. plans to sell as much as $1.25 billion of its holdings in Knowledge Realty Trust, marking one of its largest divestments from an Indian real estate investment trust this year. The transaction will significantly reduce the U.S. investment firm's stake in the entity.

Details of the Offering

According to a filing cited by Bloomberg, the offer for sale is structured with separate windows for different investor classes. The sale is scheduled for Aug. 31 for non-retail investors and Sept. 1 for retail investors.

Key terms of the deal, based on a term sheet seen by Bloomberg News, include:

• Base Deal Size: Approximately 79.9 billion rupees ($838 million).
• Greenshoe Option: An additional 39.96 billion rupees, bringing the total potential size to $1.25 billion.
• Units Offered: Up to 11.1 million units, representing a 25.03% stake.
• Floor Price: Set at 108 rupees per unit, a 4.7% discount to the trust's last closing price and a 13% discount to its net asset value.

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Shift in Shareholding

This sale represents a significant realignment of ownership in the trust. Blackstone's current stake stands at 46.5%. If the greenshoe option is fully exercised by the managers of the sale, Blackstone's holding will be reduced to 21.5%.

Following the transaction, Blackstone's joint venture partner, Sattva Group, is poised to become the largest single shareholder in Knowledge Realty Trust with a 32% stake. For investors, this signals a major monetization event for Blackstone and a strategic shift in the trust's ownership structure.