Ozone Group elated with the investment from Blackstone in its Chennai Projects
There is a good surge in demand for commercial and residential properties in Chennai. This is clearly evident with the decision taken by Blackstone Group Lp to invest Rs 175 crore in a housing project in Chennai after making several investments in rent-yielding commercial assets earlier.
Bangalore-based Ozone Group is developing the mixed-use (Residential, Commercial and Institutional) project named Metrozone at Anna Nagar in Chennai. Apart from residences, the 42-acre project also has retail space and a hotel. Blackstone raised the funds through the NCD (non-convertible debenture) route and invested in the residential portion of the project.
Ozone Group chairman and managing director S. Vasudevan mentioned that the company plans to use the money to reduce their fairly high-cost debt. 15 million square feet of space will be developed this year and 30 million square feet by next year.
Vasudevan mentioned that in this Metrozone project, around 400 apartments have been handed over already, and the remaining 1,200 apartments will be handed over the next 24 months in phases.
Ambar Maheshwari the managing director- capital markets, at property advisory Jones Lang La Salle India (JLL India) mentioned that the strategy of Blackstone’s investment was interesting. Blackstone has been a patient investor during the economic slowdown in 2008 and then had done several transactions when the time was right in mainly rental assets. It has invested in several commercial properties in cities such as Mumbai and Bangalore which generate rental income. Now they are selectively investing in residential projects, to test waters and if they find good returns on their investments, then they might do more deals in this space.
Source- Mint
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