Blackstone, Salarpuria Sattva To Purchase Tanglin Developments For Rs. 2800 Crore

Blackstone, the private equity firm with southern developer Salarpuria Sattva, is planning to acquire Tanglin Developments that is the real estate firm of Coffee Day founder V G Siddhartha. This company owns a technology park in Bengaluru, for approximately Rs. 2,800 crore the sources said.

Global Village, the technology park, is a 4-million-sqft tenanted office space spread over 120-acre campus. The reputed companies like Accenture and Mphasis are tenants there and the IT company Mindtree has its headquarters in the same.

The sources said that last week, Siddhartha, the coffee baron sold his 20.4% stake in Mindtree to L&T is also selling the technology park Global Village that is situated off Mysore Road to balance his debt.

This deal between the coffee baron and Blackstone is likely to be signed on Monday and this private equity firm is about to acquire 80% of the special purpose vehicle (SPV), while Salarpuria will take the remaining 20 percent share.

Recently, Blackstone launched India’s first REITs [Real Estate Trust Investment] that is oversubscribed 2.6 times from the listing on 3^rdApril.

The Global Village has the capacity to add more of 5-6 million sq.ft. office space as only 45 acres of the land parcel is currently being used. The village has an average rentals of Rs. 40-50 per sq.ft., that is less than the bustling office corridor of the Outer Ring Road (ORR) and this difference is because of the location.

But, the Blackstone and its partner company is expecting a boost in rentals from the proposed metro rail connectivity. The company is also interested in this tech park as it has the capacity to add more office space.