Blackstone Group LP had been in discussions to sell out a New Delhi based property investment valued around USD40 million. This was according to two sources that were familiar of the matter who told Reuters. The sale was said to be the first exit of Blackstone from its property investment in India.

US based Blackstone would be selling about 30% of stake in a subsidiary of Indian property firm BPTP Ltd. The fund was in discussion with two possible buyers, one of which is BPTP's controlling owner, said sources.

The USD40 million sale would generate a return of around 2.5 times on the investment. Blackstone paid INR1 billion for the stake in BPTP in March 2007. This was according to Blackstone's website.

According to one of the sources, the deal could be announced later this week.

BPTP did not respond to emails and phone calls seeking for comments. Blackstone declined to give statements regarding the report.