Blackstone-Panchshil Realty JV for REIT IPO

Blackstone and Pune-based developer Panchshil Realty are evaluating a potential monetization of their joint venture assets via the real estate investment trust (REIT) route, sources with knowledge of the matter told Moneycontrol. If the proposed plan fructifies, it would be a hat-trick of REIT IPOs backed by Blackstone in India. Previously, the US private equity giant has launched the Embassy Office Parks REIT and the Mindspace REIT which it backs along with developer K Raheja Corp. These are very early days as structuring and reorganisation of the joint portfolio needs to be done to make it REIT ready, but preliminary discussions have begun for a listing of the commercial assets. There is no clarity yet on the issue size as they are mulling on the assets to be added to the REIT. Panchshil Realty is one of the largest real estate developers in Pune with good assets in strategic locations. In all probability, most of the joint venture assets in Pune may be monetized but to ensure geographical diversification for investors, a few from Mumbai may also be added. This latest REIT offering is likely to be launched in 2021.