Blackstone nears US$400 million deal for India’s South City Mall

BLACKSTONE, one of the largest landlords in India, is nearing a deal to acquire South City Mall in Kolkata for as much as US$400 million, according to sources with knowledge of the matter.

The US$1.1 trillion asset manager, which has deployed US$20 billion in office space and hotels in India, is in conversations with financiers to line up funding for the transaction, said the sources, who asked not to be identified discussing confidential information.

The shopping mall is owned by South City Projects (Kolkata), a joint venture of several real estate developers based in the city, and is the largest in eastern India, according to its website. It has brands such as Zara, Sephora and Marks & Spencer in addition to movie theatres and a gaming arena.

Blackstone is looking to tap into consumer spending that drives almost 60 per cent of India’s gross domestic product, the sources said. The firm has been investing in warehouses that capture the boom in e-commerce, and the mall acquisition would extend that to brick and mortar stores, they added.

Representatives from Blackstone declined to comment. South City Projects did not immediately respond to an e-mail seeking comment.

If a deal is clinched, it would mark Blackstone’s entry into retail malls in Kolkata, one of the largest cities in India and a former capital in the British colonial era.

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Blackstone is not new to managing retail properties in India. Its Nexus Select Trust, a real estate investment trust, has a portfolio of about 18 malls across 14 cities. BLOOMBERG