Blackstone to buy CDEL's tech Park for Rs 3,000 crore

Global private equity major Blackstone is buying the commercial/office space owned by Coffee Day Enterprises Ltd (CDEL). The transaction, estimated to be around Rs 3,000 crore, is being done as part of the CDEL's effort to de-leverage the group.

The CDEL board of directors, in a meeting held on Wednesday, approved the disinvestment of Global Village Tech Park in its subsidiary, Tanglin Developments Ltd, in favour of Blackstone. The transaction value, according to CDEL, is between Rs 2,600 crore and Rs 3,000 crore and a non-binding letter of intent for this deal has been signed already. "The transaction closure is subject to completion Blackstone's due diligence, documentation and receipt of requisite regulatory approvals, which is expected in the next 30 to 45 days," the company said in a regulatory filing.

Additionally, the company Board has also given its in-principle approval for the disinvestment of its step-down subsidiary AlphaGrep Securities Pvt Ltd in the favour of Illuminati Software Pvt Ltd for an approximate amount of Rs 28 crore.

"The said transactions will significantly help in de-leveraging the Coffee Day Group, and ensure smooth operations while safeguarding the interests of all stakeholders, including investors, lenders, employees and customers," CDEL said in a statement.