To boost capital and improve financial stability, Transindia Real Estate announced that it intends to sell some undertakings and subsidiaries to major international investment company Blackstone for around ₹400 crore.
The divestment consists of the sale of a logistics park in Jhajjar, Haryana, for an estimated $625 million in enterprise value, as well as a 10% ownership position in additional logistics assets. The deal, according to the firm, “will generate sizeable cash proceeds and support Transindia Real Estate’s growth plans.”
Additionally, for an equity consideration of close to ₹60 crore, the company would sell its 10% stakes in Malur Logistics & Industrial Parks, Venkatapura Logistics & Industrial Parks, Kalina Warehousing, Panvel Warehousing, and Allcargo Logistics & Industrial Park.
Transindia Real Estate would gain more than ₹400 crore as a result of these divestments. The company had previously announced the sale of its equipment business. “The divestment of these companies marks an important milestone for Transindia Real Estate,” stated Shashi Kiran Shetty, founder and chairman of the Allcargo Group (Transindia Real Estate had separated from Allcargo). This deal fits with our plan to establish end-to-end real estate business capabilities that include asset development, leasing, and sales.
“The cash proceeds from this divestment will strengthen our balance sheet and provide the necessary resources for future growth,” he said.
According to Transindia Real Estate’s Managing Director, Jatin Chokshi, “This transaction paves the way for future growth with strength in the balance sheet to execute new projects and drive growth across other key opportunities in real estate, particularly in logistics parks.”