Mumbai: Global investment giant Blackstone has launched an open offer to acquire up to 26 per cent stake in Pune-based Kolte-Patil Developers Ltd from public shareholders, amounting to Rs 758.56 crore. This move follows Blackstone’s recent agreement to acquire a 40 per cent stake in the company for Rs 1,150 crore, marking its foray into India's residential real estate sector.
Details of the Open Offer
According to a regulatory filing on Monday, Blackstone Group’s affiliated firm, BREP Asia III India Holding Co VII Pte Ltd, in partnership with Blackstone Real Estate Partners Asia III L P and Blackstone Real Estate Partners (Offshore) X.TE-F (AIV) L P, has launched an open offer for acquiring up to 2.30 crore shares of Kolte-Patil Developers. This represents 26 per cent of the emerging voting capital, with an offer price set at Rs 329 per share. The total consideration for the open offer stands at Rs 758.56 crore.
Breakdown of Blackstone’s Acquisition
The overall deal will see Blackstone acquiring up to 66 per cent stake in Kolte-Patil Developers for a total investment of approximately Rs 1,800 crore. The acquisition will take place in three parts:
Preferential Issue: Blackstone will acquire a 14.3 per cent stake for Rs 417 crore through a preferential allotment of 1,26,75,685 equity shares at Rs 329 per share.
Promoters’ Stake Sale: The firm will buy an additional 25.7 per cent stake (2,27,96,353 shares) from the promoters for Rs 750 crore.
Public Shareholders: The open offer is aimed at acquiring up to 26 per cent stake from public shareholders.
Joint Control with Promoters
Following the completion of the transaction, Blackstone will acquire joint control over Kolte-Patil Developers alongside its promoters. Currently, the promoter group holds a 69.45 per cent stake in the company.
Rajesh Patil, Chairman of Kolte-Patil Developers, called the partnership a "landmark moment" in the company’s growth journey. He emphasized the long-term value this deal is expected to generate for stakeholders.
Blackstone's Vision for Indian Real Estate
Asheesh Mohta, Head of Real Estate Acquisitions - India at Blackstone, stated that the firm has already established leading platforms across office, retail, logistics, hotels, and data centers. This latest investment marks its strategic entry into India’s residential sector, driven by rising demand for quality housing amid a growing middle-class population and rapid urbanization.
Blackstone aims to double its India exposure to USD 100 billion from its current USD 50 billion investments. The firm has been active in Indian real estate for over two decades, primarily in office space, shopping malls, and warehousing.
Recent Developments in Blackstone’s India Investments
Recently, Blackstone-backed Knowledge Realty Trust, in partnership with Sattva Group, filed a Draft Red Herring Prospectus (DRHP) with SEBI for a REIT public issue worth up to Rs 6,200 crore. This marks Blackstone’s fifth public listing in India, following three listed REITs and Ventive Hospitality.
With its latest move in Kolte-Patil Developers, Blackstone strengthens its footprint in India’s real estate sector, further solidifying its position as a leading global investor in the country.