Blackstone to increase exposure in realty
Blackstone Group LP, a leading private equity (PE) investor in India, is planning to increase their exposure in real estate in India. Structured finance deals, according to experts, have been quite common as the cost of equity has increased significantly due to unfavourable Indian macro situation. Another PE investor, Kohlberg Kravis Roberts (KKR), says it will focus more on investing in stressed corporate.
KKR and Blackstone have invested $1.6 billion and $1.7 billion in India. Henry Kravis, co-chairman and co-CEO of KKR points out that companies with impaired capital structure can be helped out by them. KKR has invested in a lot of companies like Alliance Tire, Bharti Infratel, and Coffee Day Resorts. Blackstone invested in Gokaldas Exports, Moser Baer Projects and it recently announced that it would buy out the iconic Express Towers in Nariman Point in Mumbai for about Rs 900 crore.
There has been a change in the leadership in Blackstone with Amit Dixit and Mathew Cyriac taking over from Akhil Gupta as co-heads of its India operation. The global head of the $80-billion real estate fund at Blackstone Group LP, Jonathan Gray, points out that the fund intends to invest on properties abroad, especially in emerging markets such as India.
Source: Business Standard
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