Blackstone set to acquire up to 66% stake in Kolte Patil for ₹1,800 crore, marks entry into the housing market in India
Global investment firm Blackstone is set to expand its footprint in the Indian real estate market by acquiring up to a 66% stake for ₹1800 crore in Pune-based Kolte-Patil Developers as part of its strategy to diversify into the residential real estate segment.
According to a statement issued by Kolte Patil Developers Limited (KPDL) on March 17, Blackstone will acquire up to 66% of KPDL for a commitment of ₹1,800 crore. KPDL will allot 1.27 crore equity shares (14.3%) to Blackstone Real Estate funds, raising Rs. 417.03 crore.
The statement said that Blackstone Real Estate funds will acquire 25.7% of KPDL’s post-issue equity share capital from existing promoters. Following the transaction, Blackstone Real Estate funds will hold approximately 40% ownership in KPDL. Simultaneously, Blackstone Real Estate funds will acquire up to 26% from the public through an open offer.
Also Read: Pune real estate market reports a 5% drop in sales in 2024, 1 BHK apartments biggest casualty: report
“KPDL has forged a transformative strategic partnership with global investment giant Blackstone. This partnership is a pivotal milestone in KPDL’s growth trajectory, positioning the company to leverage Blackstone’s global expertise and financial strength to accelerate expansion, drive innovation, and reinforce its leadership in the dynamic Indian real estate sector,” according to the statement issued by KPDL.
Also Read: Are Mumbai real estate prices moderating, giving homebuyers more room to negotiate?
“This landmark partnership with Blackstone marks a defining moment in KPDL’s growth story and our commitment to creating long-term value for our stakeholders. Blackstone’s investment is a testament to the strength of our brand and execution capabilities,” Rajesh Patil, Chairman of Kolte-Patil Developers Ltd, said.
He added, “Aligning with one of the world’s most respected investment firms will drive an orbital transformation in KPDL and support value unlocking. We are excited about the opportunities ahead as we combine our market expertise with Blackstone’s global governance benchmarks,” Patil added.
As per Blackstone, this investment will mark its strategic entry into the Indian residential sector.
“We are pleased to partner with Kolte-Patil Developers, a well-established developer, and continue our commitment to investing in Indian real estate. Blackstone has built leading platforms across the office, retail, logistics, hotels and data centres, and this investment marks our strategic entry in the Indian residential sector,” said Asheesh Mohta, Head of Real Estate Acquisitions – India, Blackstone.
Also Read: Real estate developers acquire 2,335 acres for ₹40,000 crore in 2024; Tier 1 cities hold 72%, Tier 2 cities 28% share
He added, “The sector is underpinned by strong tailwinds, including a growing middle-class population and rapid urbanisation. We see the potential to serve Indians increasingly looking for high-quality homes and continue our mission of investing in and improving residential properties around the world.”
Meanwhile, KPDL has maintained that this strategic collaboration will empower KPDL to scale operations, enhance execution capabilities, and capitalize on India’s rapidly growing residential real estate sector.
The statement added that with a strong foundation, a debt-free balance sheet, and a shared vision for sustainable and scalable growth, Kolte-Patil and Blackstone are well-positioned to strengthen their presence in India’s residential real estate sector.
