From Shoppers’ Paradise to Investor’s Dream: Blackstone Acquires Kolkata's South City Mall

In its largest transaction, Blackstone has closed the acquisition of South City Mall, the iconic Kolkata mall, for ₹3,250 crore, solidifying its lead as India's largest retail realty investor. The deal, done with South City Projects—a group of leading Kolkata business families—is Blackstone's foray into eastern India retail mall space and among the largest single-asset mall transactions in India.

 

Deal Value and Parties Involved:

Blackstone acquired South City Mall from South City Projects for ₹3,250 crore with Anarock as the transaction advisor.

 

Mall Profile:

South City Mall with over one million square feet of retail space is eastern India's largest shopping mall. It boasts both global and Indian brands such as Zara, Sephora, and Marks & Spencer and movie complexes and multiplexes. The mall generates more than ₹1,800 crore in turnover each year and experiences humongous footfalls.

 

Strategic Significance:

The transaction gives Blackstone a strong retail platform in Kolkata, adding to its existing portfolio of 18 malls across 14 Indian cities managed by Nexus Select Trust. The transaction is consistent with Blackstone's strategy of capitalizing on India's consumption growth, which accounts for nearly 60% of India's GDP.

 

Broader Implications:

The deal is expected to boost investor sentiment towards India's retail real estate market and may result in further consolidation. Blackstone's growing interest in Indian retail realty is also evident in its plan to expand its REIT business and invests in warehousing and data centers.

 

Market Impact:

This is seen by industry players as a benchmark transaction that has the ability to re-set valuation levels for high-end retail buildings in the market. This transaction is a milestone for Blackstone and for the Indian retail realty market, and it demonstrates the strength and growth potential of the sector. 

 

Source: Moneycontrol, Economic Times, Financial Express