As per the transaction, Blackstone will get compulsorily
convertible debentures of Pune Dynasty Projects (PDP), which
is currently into the development of the non-SEZ part of
Embassy TechZone in Pune.
Once converted, Blackstone will hold 50% stake in the SPV.
Additionally, Embassy, which owns 51% stake in PDP, will
acquire 49% from Alta Vista, a Mauritius-based financial
institution, making it a subsidiary of Embassy Property
Developments (EPD).
"Post this acquisition, EPD will transfer its shareholding of
35.77%, 51.01% and 48.75% in the three SPVs in Pune and
Bangalore that are developing business parks along with some
other assets in the form of advance paid for the purchase of
land and for acquiring joint development rights to PDP.
Herein after, all the three SPVs will become the investee
company," said a CCI order. Embassy Golf link is a 5-million
-sqft, or 65-acre, business park while Manyata Embassy
Business Park is a 100-acre integrated mixed-use development
business park, which has a developable area of 18.29 million
sq ft.
Embassy TechZone in Pune is spread over 70 acre with 52 acre
designated for a special economic zone. Some of Embassy's big
tenants at its commercial properties in Bangalore and Pune
include IBM, Capgemini, Mercedes Benz, Atos Origin and
Accenture. "Blackstone and Embassy will jointly control and
manage the entity in which the fund has invested. The deal
has very complicated structure with multiple cross-holdings.
Embassy will be responsible for completion of the project,"
the person said.
