Blackstone has acquired South City Mall for Rs 3,250 crore, closing one of the biggest acquisitions and adding Kolkata to its chain of property holdings in India, it was confirmed on Tuesday.
The Telegraph Online had in March this year reported how the US investment giant was close to clinching the deal.
The Mumbai-based Anarock Group was the transaction adviser in the deal.
“We applaud Blackstone on this acquisition. South City Mall is indeed a prime retail asset in one of the most prestigious and sought-after areas in south Kolkata,” said Sushil Mohta, chairman of Merlin Group and director of South City Projects.
Prakash Bachhawat, director of the JB Group, who led the transaction process on behalf of South City Projects, echoed Mohta.
“This transaction represents more than an acquisition – it’s a vote of confidence in Eastern India’s retail ecosystem. South City Mall is an iconic development, and we’re proud to partner with a world-leading firm like Blackstone,” Bachhawat said.
Covering over one million square feet, the South City Mall, which opened in 2008, was a part of a consortium of top real estate players in this part of the country – led by Pradeep Sureka, the head of Kolkata-based real estate bigwig Sureka Group, Emami realty, and other investors.
With an annual turnover of Rs. 1,800 crore, the mall with around 170 stores is home to popular brands including Pantaloons, Zara, Shoppers Stop, Tommy Hilfiger, Levi’s, Only, Armani, Calvin Klein, The Collective, United Colours of Benetton, Adidas, Puma, Fab India, MAC, Skechers and Spencer’s among other prominent names.
“We are thrilled to strengthen our presence in India and invest in the iconic asset,” said Asheesh Mohta, head of real estate acquisitions, India, Blackstone. “South City Mall is a place where the community comes together – it’s the definitive destination in Kolkata for shopping, dining, leisure and entertainment.
He said Blackstone plans to position South City Mall for long-term success benefiting from the American giant’s scale, operational expertise and deep experience in the real estate sector.
“In India, we own one of the largest retail portfolios,” Mohta said.
The purchase of South City Mall marks the global asset manager’s entry into the mall sector in Kolkata and adding the city to its property holdings across the country. Through its Nexus Select Trust, a real estate investment trust, Blackstone has around 18 malls in 14 cities in India. The company has already invested $20 billion in Indian office space and hotels.
“We look forward to seeing the project continue to thrive in Blackstone’s able hands. This landmark acquisition once again showcases Anarock’s ability to facilitate large-scale, complex deals and commitment to delivering real estate advisory services for marquee assets,” said Soumendu Chatterjee, regional director, Land, Anarock Group.