The listed arm of IndiaBulls Group, known as Indiabulls Real Estate has decided to merge with a Bengaluru based realty embassy that is unlisted. After having a successful merger, global private equity major Blackstone would imbibe $200 million to its existence. The deal was sealed and the merged entity would be controlled by Jitu Virwani, the promoter. Sameer Gehlaut, the promoter of Indiabulls would be designated as the passive shareholder. With the emergence of this merger, Indiabulls Group will take a clear exit from the real estate.

Scrips would be given to the current shareholder of Indiabulls Real Estate and would be listed on the bourses as well. According to the company, independent valuers and merchant bankers will be deciding the share-swap ratio. Along with the promoters of the Embassy Group, Blackstone would also hold its share in the final merged entity. The company, following the merger would be the “development arm” for Embassy Office Park REIT which is the first listed real estate investment trust in India. The REIT, in turn, would be benefitted as they are going to get more assets ultimately the yield of the REIT in the instrument would be increased.

Blackstone sold the properties worth Rs, 12,000 crores to PE giant in last two years. Indiabulls grew a strong relationship with Blackstone as well. According to the stats, presently Embassy Office Park REIT possesses a market capitalisation of worth Rs. 32,000 crore while Rs 4,865 Crore is the value of Indiabulls Real Estate. Embassy’s REIT has given a 30% return to its investors, which was present in April listing of 2019.

Sameer Gehlaut, Founder and Chairman of Indiabulls group confirmed that the deal was done according to the plan that was announced in June 2019. The deal will surely mark a safe exit from the real estate world. He added that his company will only focus on its financial services businesses.

Source: https://timesofindia.indiatimes.com/business/india-business/indiabulls-realty-co-to-merge-with-bluru-based-embassy/articleshow/73817985.cms

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