Blackstone and Salarpuria Sattva to purchase Tanglin Developments


Blackstone and Salarpuria Sattva will together be acquiring Tanglin Developments, which is the real estate company of Mr. V.G. Siddhartha, for a sum of around Rs.2,800 croreBlackstone is expected to own around 80% of the stake in the company, while Salarpuria Sattva will own the remaining. This deal is likely to be signed next week.  

Blackstone and Salarpuria Sattva will be purchasing Tanglin Investments for a sum of around Rs.2,800 crore. The deal is expected to be signed next week.

Mr. Siddhartha is the founder of Coffee DayHis real estate company, Tanglin Developments, owns a tech park called the Global Village, which is located in Mysore Road, Bengaluru. The technology park has a 4 million square feet office space that is located on a campus that measures 120 acres.  

A few companies that are located in the tech park include Mphasis, Accenture, and Mindtree. Earlier this week, Mr. Siddhartha, who had a stake of 20.4% in Mindtree, sold his holding in the company to L&T.  

In India, Blackstone has been one of the largest investors in the commercial real estate space, which include business parks. The company cumulatively has a portfolio of around 108 million square feet of office space.  

Global Village currently only uses 45 acres of the available land as office space. The average rent in the tech park ranges between Rs.40 and Rs.50 per square feet.  

Mr. Siddhartha is looking to raise funds of nearly Rs.5,500 crore by selling his stake in Mindtree and Tanglin Developments. The funds will be used to repay his debt and fund the expansion plans of Coffee Day Enterprises. Other investors that were exploring the option to acquire Global Village are Xander, Brookfield, and Singapore’s GIC.  

Source: The Times of India 


Please enter your comment!
Please enter your name here