From Breakingviews - Blackstone converts Indian property to safe haven
Register
The structure has brought a bit of discipline to an often unruly market. It lets investors cash out while keeping the building’s management in place to ensure tenants remain well-served. Earlier, buildings were sold floor by floor. Embassy’s dividend yield is 6.2% against 7.4% for the coupons on India’s 10-year bonds. But there’s capital appreciation, too: India’s office REITs delivered returns of up to 27% in the past year, compared with a 2% decline in the Nifty 50 IndexOffice-focused real estate trusts like Embassy might fare well even if the world tips into recession. Its leverage is low and past downturns have prompted international companies to outsource more jobs to India.
Blackstone’s shopping malls are likely to prove a similar hit. There’s a limited supply of nice ones, and rich Indians have emerged from the pandemic largely unscathed, which bodes well for premium retail rents. The Abu Dhabi Investment Authority was a buyer for some of the Embassy shares through a realty fund partner. Other global funds looking to put a good roof over their long-term investment needs will follow.
On Sept. 27, Blackstone raised $325 million from selling an 8.1% stake in Embassy Office Parks REIT, per IFR. Kotak Realty, a fund backed by the Abu Dhabi Investment Authority, bought shares in the block deal, Indian media reported.Editing by Antony Currie and Thomas Shum
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Astronomers may have found some of the very earliest stars thanks to James WebbPeering incredibly far back into time thanks to James Webb, astronomers found a group of much older stars than they expected.
Read more »
2023 Porsche 911 GT3 RS First Drive Review: Ludicrous Handling, Thanks to the AirPorsche has taken its 911 GT3 RS to a place usually reserved for million-dollar hypercars when it comes to extreme aerodynamic performance.
Read more »
COPD Patients are Breathing Easier Thanks to Remarkable New ImplantSome patients with chronic obstructive pulmonary disease, or COPD, are breathing easier thanks to new technology in the form of a small valve inserted in the lung.
Read more »
Never Load the Dishwasher Wrong Again Thanks to This Viral TikTokBabs Costello, who is known as Brunch with Babs on TikTok, shared a guide on how to properly load a dishwasher — and racked up more than 4.5 million views; take a look at her handy tutorial
Read more »
Hyundai Could Get Federal EV Tax Credits Thanks To New Bill From Georgia Senator | CarscoopsHyundai Could Get Federal EV Tax Credits Thanks To New Bill From Georgia Senator | Carscoops carscoops
Read more »