Blackstone offers Rs 560 cr to buy a part in UB City
Bangalore- Vijay Mallya’s investment holding company UB Holdings has got a jumbo offer by Private equity giant Blackstone, revealed sources.
The PE firm has offered around Rs 560 crore to the company to buy out the prime office and retail real estate blocks in UB City, the biggest commercial property project in Bangalore.
As an estimate, Blackstone’s offer for the 3.7 lakh square feet of commercial space, which has been a home to many MNCs such as Apple, Citibank, Ernst & Young, 3M, Vodafone, etc and 75,000 square feet of luxury retail space would come around Rs 550 crore, said a source.
However, the transaction will not include UB corporate offices and the branded ultra-high end Kingfisher residences. A couple of offers have have come to the company and Mallya is yet to take a final firm decision over the proposals, according to sources.
The deal is also assumed to be a part of the company’s plans to recapitalize Kingfisher airline in which it holds a little more than 24% stake.
At present UB City commands office rental rates of Rs 120 to Rs 130 per sq ft and retail rental rates of about Rs 250 to Rs 300 per sq ft, giving annualized return on rental incomes of about 11-13%.
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