GIC, Blackstone largest investors in Indian realty
Singapore’s sovereign wealth Fund GIC Pte Ltd and private equity firm Blackstone Group LP have emerged as the two top global investors in India’s real estate sector after almost a decade of investing in the country. Canada’s Brookfield Asset Management Inc is fast moving into the big league.
GIC and Blackstone, which have different investment strategies and return expectations, have bought some of the best projects across real estate assets classes — residential, office space, hotels and shopping malls — since 2006.
New York-based Blackstone has invested about $2 7 billion in real estate projects in India across 19 transactions and manages the largest portfolio of office parks in India. GIC has invested around $2 billion in building a diversified portfolio
On Wednesday, DLF Ltd, India’s largest developer, said it is in exclusive talks with GIC, formerly known as Government of Singapore Investment Corp, to sell the 40% stake of its promoters in a rental unit. The stake sale is expected to raise ₹12,000-13,000 crore. Both GIC and Blackstone were earlier shortlisted for the stake-sale transaction.
Once the GIC-DLF deal goes through, it will be GIC’S largest office investment in India and will put it in a formidable position, challenging Blackstone’s top slot.
Blackstone opened its realty division in India in 2007, but started buying office assets in 2011, when not many investors were interested in the prime rental asset class
“Both GIC and Blackstone didn’t slow down investments even when the markets turned slow.,” said Shobhit Agarwal, MD, capital markets, and international director at property consultant JLL India.
GIC and Blackstone didn’t respond to queries.
GIC bought a 50% stake in R City mall in suburban Ghatkopar, in Mumbai, for close to ₹300 crore back in 2006 in what was its first real estate investment in the country.
Blackstone signed its first transaction in 2008, when it bought a minority stake in management firm Synergy Property Development Services Pvt Ltd.
Meanwhile, Brookfield has built a $2 billion asset base in India in a span of seven years