Blackstone Eyes Major Deal: In Talks to Acquire Kolkata’s South City Mall and Colombo’s Altair Residences
Global private equity giant Blackstone is in advanced discussions with the South City Group, a consortium of Kolkata’s leading real estate developers, to acquire South City Mall, eastern India’s largest and most successful shopping destination. The group is also negotiating the sale of Altair Residences, a luxury housing project in Colombo. The combined value of the potential deal is estimated to be around ₹3,500 crore.
If finalized, this transaction would mark Blackstone’s largest investment in Kolkata’s real estate market, which has historically seen limited interest from institutional investors. A source from South City Group confirmed progress in the negotiations but noted that it might take some time to finalize the agreement.
Blackstone, the world’s largest alternative asset manager with over $1 trillion in assets, has a strong presence in India’s commercial real estate sector. It also sponsors Nexus Select Trust, India’s largest mall operator, but has yet to establish a footprint in eastern India’s retail segment.
The South City Mall, built in 2008 and revamped in 2018, boasts a leasable area of 800,000 square feet and consistently ranks among India’s top 10 malls. It recorded gross revenues of ₹1,300 per square foot last year, with just 2% of its space remaining vacant. In contrast, the Altair Residences in Colombo, the tallest residential tower in Sri Lanka, has faced challenges due to the island nation’s recent economic crisis.
Real estate experts highlight Blackstone’s financial strength and expertise in managing diverse real estate assets, enabling it to retain and optimize projects for long-term returns. With India’s organized retail market poised for growth, the acquisition of South City Mall would align with Blackstone’s strategy to expand its portfolio.
Earlier this year, Blackstone announced plans to invest an additional $17 billion in India, where its current assets under management amount to $50 billion, including $30 billion in real estate. The South City deal could signal a significant step in the company’s eastward expansion.
News Source : “Information for this article was gathered from a variety of reliable news outlets.”
