In Short:
Blackstone sold a 20.8% stake in Nexus Select Trust for ₹4,361 crore at ₹138 a unit. They divested the stake through bulk deals on the NSE and BSE, with units bought by Indian and overseas funds like Morgan Stanley Asia and HDFC MF. Blackstone’s monetisation strategy includes exiting investments in Indian REITs, with plans to launch a new office REIT called Nucleus Office Parks.
The Human Touch in Business: Blackstone Sells 20.8% Stake in Nexus Select Trust
Hey there! Guess what Blackstone just did? The private equity firm has sold a hefty 20.8 per cent stake in its mall-based real estate investment trust, Nexus Select Trust, and made a whopping ₹4,361 crore at ₹138 a unit. Now that’s some serious cash, isn’t it?
Big Players in the Game
Blackstone, which had a 43.13 per cent stake in the REIT earlier, decided to divest the stake on both the NSE and BSE through several bulk deals. The units that were sold by Blackstone found new homes with Indian and overseas funds like Morgan Stanley Asia, HDFC Flexi Cap Fund, ICICI Prudential MF, Carmignac, and Wells Fargo Emerging Markets. Talk about some big players in the investment game!
Two funds of Morgan Stanley Asia snatched up over 2.6 per cent stake, while HDFC MF grabbed around 2 per cent. Seems like everyone wanted a piece of the pie!
A Journey of Ups and Downs
Nexus Select made its grand entrance into the bourses in May 2023, starting at ₹100 per unit. From hitting a low of ₹114.12 to reaching a high of ₹154.85 in July this year, it’s been quite the rollercoaster ride for this REIT. But hey, that’s just how the market works, right?
The Master Plan: Monetisation Strategy
So, why did Blackstone decide to sell its stake? Well, it’s all part of the US private equity firm’s master plan for monetisation and portfolio management. Back in December 2023, Blackstone bid farewell to its investment in Embassy Office Parks REIT, and before that, it said goodbye to its stake in Mindspace Business Parks REIT. Talk about making moves!
Blackstone is known for being a trailblazer in the Indian real estate investment trust scene, having played a pivotal role in launching three out of the four REITs in India. Nexus Select stands out as the only REIT with retail assets in its portfolio. Now that’s something to brag about!
Rumor has it that Blackstone is gearing up to launch its next office REIT under Nucleus Office Parks, in collaboration with the Sattva group based in Bengaluru. Looks like there’s no stopping Blackstone in its quest for real estate domination!
