Blackstone will acquire the Coffee Day technology park for Rs 3,000 million
BENGALURU Black stone , together with the southern developer Salarpuria Sattva, closed the agreement to acquire Coffee day The real estate company Tanglin Developments, which owns a technology park in Bangalore, for Rs 3,000 million, said an informed source of the development. The agreement is the first major divestment in helping to reduce the company's debt of Rs 6,547 million after the suicide of founder VG Siddhartha last month.
The deal is expected to be announced as soon as today and the payment by Black stone will be done in multiple tranches. The first tranche of Rs 2,000-2,200 crore will be paid in four weeks of the deal closing while the remaining money will come in the next 24 months, said the source mentioned above.
“The deal is being done through a special purpose vehicle where Black stone will own about 90% and the remaining 10% will be held by Salarpuria,” said the source.
Coffee day and Black stone spokespersons could not be immediately contacted for a comment.
TOI had reported in March that Black stone -Salarpuria is in talks to buy the technology park for Rs 2,800 crore. The talks were put on hold by VG Siddhartha as he started focusing on the sale of flagship coffee retail chain business to Coca-Cola and ITC, but was revived last month.
Interestingly, Black stone has agreed to pay a higher price than it was negotiating for earlier, said the source involved in the transaction.
The money will be used to repay debt, including that held under Tanglin, which is a subsidiary of listed Coffee day Enterprises.
The Technology Park, Global Village, is a 4 million square foot rented office space located on a 120-acre campus with clients such as Mphasis, Accenture and Mindtree. Global Village has the potential to add another 5-6 million square feet as it now only uses 45 acres of land. You get average rents of Rs 40-50 per square foot, lower than the bustling corridor of the Outer Ring Road (ORR) office due to its location.