The deal will also see Blackstone further trimming its stake in Embassy. Credit: JESHOOTS.COM on Unsplash.

American investment giant Blackstone is weighing options to sell nearly half of its stake in Indian real estate investment trust (REIT) Embassy Office Parks to private equity firm Bain Capital in a deal valued around $480m, Reuters reported citing two sources.

If finalised, the deal will represent the first REIT investment made by Bain in India, which is witnessing the return of staffs to offices post the Covid-19 pandemic.   

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The deal will also see Blackstone further reducing its stake in Embassy. Discussions on the deal are still in a nascent state, the sources told the agency.

The firms are planning to complete the deal through block deals on Indian stock exchanges over the next few weeks, but they are yet to agree on a date or pricing, added the first source who had direct information on the development.

Representatives from Blackstone, Bain Capital and Embassy refused to offer any comment on the matter.

Embassy Office Parks, which became India’s first REIT to go public in 2019, currently owns and runs over 43.2 million square feet of office space in various Indian cities, including Bengaluru and Mumbai.

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The firm also marks the biggest office REIT in Asia in terms of area.

At present, Blackstone has a 24% stake in Embassy REIT that has around $4bn of market capitalisation.

The private equity firm is looking to divest approximately 10%-12% of its stake, according to the sources.

The transaction will be Blackstone’s fourth block deal to sell stake in Embassy.

It follows a Bloomberg report that stated that Blackstone would roll out a private credit fund for wealthy European investors.