Private equity firms Blackstone Group, Mapletree Investments, Brookfield Asset Management, Apollo Global and a domestic fund managed by InterGlobe Enterprises’ real estate arm have emerged as the final bidders for Reliance ADAG’s headquarters in Mumbai, said two persons with knowledge of the development.
Reliance ADAG is looking to monetise its assets to help reduce its debt. In the initial rounds, the standalone commercial property, spread over 4 acres in Mumbai’s Santacruz suburb, had drawn interest from around 10 entities including private equity and pension funds and two Mumbai-based realty developers.
“Most of the initial bids were made between Rs 1,500 crore and Rs 1,700 crore. The buyer is expected to be finalised over the next two-three weeks,” said one of the persons cited earlier.
The property, situated off western express highway with 600,000 sq ft saleable area, houses the offices of various Reliance ADAG companies. The monthly rentals at the property range between Rs 230 per sq ft and Rs 250 per sq ft.
“While two real estate developers had shown interest in the property, the final bidders in the fray are all institutional investors looking for rental yield,” said the second person.
Email queries sent to Reliance ADAG, Apollo Global Management and Inter-Globe Real Estate remained unanswered till the time of going to press. Blackstone, Mapletree Investments and Brookfield Asset Management declined to comment.
Source: Economic Times