BLACKSTONE TO BUY 85 PC IN NITESH’S PUNE MALL FOR `300 CRORE
As per a report in The Times of India, private equity ͤrm Blackstone is set to buy an 85 percent stake in southern property developer Nitesh Estates’ mall in Pune for approximately `300 crore. New York-based Blackstone, which is building a portfolio of shopping malls as part of its bet on rent-yielding real estate, will acquire shares held by Goldman Sachs in ‘Nitesh Hub’. Nitesh will retain the remaining 15 percent in the one million sq ft mall.
This will be Blackstone’s third partnership deal with a Bengaluru developer after striking investments with Embassy Group and Salarpuria Sattva for tenanted ofͤce spaces. One of the sources said Blackstone was likely to re-purpose Nitesh Hub (formerly known as Koregaon Park Plaza), bringing in a bigger mix of ofͤces — especially co-working spaces — in the tenancy mix As per the report, Goldman Sachs is exiting the nearly three-year-old investment with a gain of over $10 million, or `70 crore, sources added. TOI reported in January that Nitesh Estates was in talks with China’s Fosun Group for a capital infusion of about `800 crore at the entity level.
Blackstone entered the retail space in the country less than two years ago by setting up a fully owned subsidiary, Nexus Malls. It has been mopping up stake in retail assets in recent past, which include malls such as Treasure Island in Indore, Elante Mall in Chandigarh, Seawoods Grand Central in Navi Mumbai from L&T, and the Alpha One in Amritsar and Ahmedabad.