Therise andrise of the Blackstone group in India
EXPLAINER Blackstone Group has strengthened its real estate investment portfolio in India and is set to cross the $5 billion mark across asset classes including shopping malls and residential properties
BENGALURU: Private equity firm Blackstone Group Lp has strengthened its real estate investment portfolio in India and is set to cross the $5 billion mark across different asset classes including office, shopping malls and residential.
Last week, it signed a definitive agreement with Indiabulls Real Estate Ltd to buy a 50% stake in the latter’s prime office assets in Mumbai for around $730 million.
Once the deal is concluded by March-end, Blackstone’s real estate arm would have committed $5.1 billion across 30 real estate investments, of which $3.7 billion is in office space spanning 100 million sq. ft, consolidating its top position as the country’s largest office space investor.
In 2018, Blackstone is also set to buy an 80% majority stake in Nitesh Hub, a shopping mall in Koregaon Park, Pune from real estate firm Nitesh Estates Ltd for around Rs310 crore.
“Blackstone’s patience in waiting for the right investment opportunities, its focus on completed office assets and choosing the right developer partners have been its key strengths,” said Ramesh Nair, chief executive and country head at property advisory JLL India.
Of the 100 million sq. ft of office space that Blackstone has invested in, around 55 million sq. ft covers completed office assets, 15 million sq. ft would be under construction and 30 million sq. ft is yet to be completed, Nair said.
The New York-based investor opened its real estate division in India in 2007 and signed its first transaction in 2008, when it bought a minority stake in management firm Synergy Property Development Services Pvt. Ltd.
It started buying office assets only in 2011, when not many investors were interested in the