The Blackstone group, a private equity firm, seeks to acquire the giant Tech park in Bengaluru. The company is in talks with Coffee Day founder V G Siddhartha’s to take up the space that is spread over 4.4-million-sq. ft.
According to the sources, if all goes well then the deal between the two can be finalized at worth Rs. 2,200 crores.
Many companies like Accenture, Mindtree and Mphasis have offices in the 110-acre campus in this park, also known as the Global Village. The park also has a capacity to absorb another office space that can be built on 5-6 million sq. ft. It is so because out of the huge land space merely 45 acres is used for development.
Xander, a US-based investor company has held a discussion to buy the park owned by Tanglin Developments, a Coffee Day company.
The timing of this deal is been the talk of the industry as Siddhartha, founder of Coffee Day is the largest shareholder in Mindtree, is likely to strike a M&A deal for the mid-tier IT services company. The four owners of the same firm are opposing the deal.
Whereas, Mindtree acquire 1.2 million sq.ft. in Global Village and is located on off Mysore Road. The headquarter of the company is also located here.
According to the sources, Coffee Day founder Siddhartha aims to monetize the non-core investments to ease the pressure of debt and liquidity. Sources also feel that the sale of Tech Park will witness slow down if Siddhartha makes exit from Mindtree anytime soon.
On the other hand, Blackstone is showing sheer interest in acquire Tech Park because of low rentals for back-office, the sources said.
Being located on the outskirts of Bengaluru city, the Global Village earns an average fetches average rentals of Rs. 40-50 per sq.ft.