Blackstone to Invest ₹1,150 Crore for 40% Stake in Kolte-Patil Developers

Global investment firm Blackstone has announced its acquisition of a 40% stake in Pune-based real estate firm Kolte-Patil Developers Ltd for a total consideration of ₹1,150 crore. This strategic investment underscores Blackstone's growing commitment to the Indian real estate market and its confidence in the long-term growth of the sector.

According to Kolte-Patil Developers' regulatory filing, the acquisition will be executed in two phases. Blackstone will initially purchase a 14.3% stake for ₹417 crore through a preferential allotment of 1,26,75,685 equity shares at a price of ₹329 per share. Additionally, the investment firm will acquire a further 25.7% stake from the company's promoter group for ₹750 crore. This will involve the purchase of 2,27,96,353 equity shares at the same price of ₹329 per share.

Following these transactions, Blackstone will launch an open offer to acquire an additional 26% stake in Kolte-Patil Developers, further strengthening its position in the company. Upon completion of the acquisition, Blackstone will hold joint control over the real estate firm along with its promoters. Currently, the promoters collectively hold a 69.45% stake in Kolte-Patil Developers.

On March 13, shares of Kolte-Patil Developers closed at ₹347.15 on the Bombay Stock Exchange (BSE). This acquisition is expected to enhance the company’s financial stability and support its expansion plans, leveraging Blackstone’s extensive expertise in real estate investments.

Blackstone has been steadily increasing its investments in India, with a current exposure of $50 billion across various asset classes, including real estate, private equity, and infrastructure. The firm recently stated its ambition to double its exposure in the country to $100 billion, reinforcing its long-term commitment to India’s growth story.

The acquisition of a stake in Kolte-Patil Developers is part of Blackstone’s broader strategy to expand its real estate footprint in India. The firm has made significant investments in office spaces, shopping malls, and warehouse assets across the country.

Recently, Blackstone, along with Sattva Group, sponsored the Knowledge Realty Trust (KRT), which filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to launch a Real Estate Investment Trust (REIT) public issue. The REIT aims to raise up to ₹6,200 crore and will be one of the largest office REITs globally in terms of leasable area.

The KRT portfolio comprises 30 Grade A office assets across six major cities, with a total area of 48.1 million square feet, including 37.1 million square feet of completed space, 2.8 million square feet under construction, and 8.2 million square feet earmarked for future development. Blackstone holds a 55% stake in the KRT, while Sattva Group owns the remaining 45%.

Blackstone's investment in Kolte-Patil Developers marks another significant move in its India strategy, reinforcing its presence in the country’s real estate sector.