Blackstone to enter the residential property segment
Modi’s housing for all agenda had a positive impact on the residential realty segment and everyone is bee lining towards that sector. Blackstone the US private equity (PE) firm, one of the largest investors in commercial properties, is set to step up presence in the residential segment. The PE giant has resolved to invest about Rs 1,000 crore in residential projects across Indian metros.
Once the discussions with the developers are complete, they will finalise on the list of developers they wish to work with and start with the investment proceedings. Recently the firm invested Rs 175 crore in the Chennai project of Bangalore-based Ozone Group which is its first investment in the residential sector.
This New York- based PE fund has invested about $1 billion in commercial properties in India however had stayed away from direct investments in the residential segment. However with the Budget 2014 promising boom to the residential real estate sector, the company picked up 49 % stake in seven mid-income housing projects of DLF. These projects will be executed in Chennai, Bangalore, Kochi and Indore.
In the past it had exposure to residential real estate by the virtue of taking over the $2.68-billion Asian Real Estate Opportunities Fund of Bank of America-Merrill Lynch (BofA-ML) in 2010. The most high-profile investment in BofA Merrill Lynch’s India portfolio is its $377-million (Rs 1,800 crore) investment in DLF’s housing projects.
Source- Business Standard
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