Blackstone Group has agreed to acquire 700,000 square feet of prime office space in Mumbai’s Bandra-Kurla Complex (BKC) for Rs 2,500 crore from Radius Group in one of the country’s largest commercial real estate deals, said two persons with knowledge of the matter. The space forms part of the high-profile One BKC project in Mumbai’s financial district.

“As per the terms of the deal, the developer (Radius) will also hold an option to buy back 40% of the area being sold now. The call option for this 40% area can be exercised anytime over the next two years,” said one of the persons cited above. “The buyback will be concluded at prevailing market rates at that point of time.”

Radius will use the money to repay Rs 1,650 crore it owes Indiabulls Housing Finance, which will not have any debt exposure to the project following this. Radius will pay .`550 crore to the Mumbai Metropolitan Region Development Authority (MMRDA), the special planning authority for BKC, as the remaining premium for development rights to the plot.

Blackstone and Indiabulls Housing Finance declined to comment. A Radius spokesperson confirmed that a deal was in place without giving any further details.

Terms have been finalised and the transaction is expected to be concluded by the end of this month, with the buyer having paid an advance, said the people cited above.


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