Blackstone fund to invest ₹1,800 crore in Kolte-Patil; its first bet on residential real estate

Blackstone Group, one of the world’s largest alternative investment firms, will invest ₹1,800 crore in Kolte-Patil Developers. This will be Blackstone’s first bet on residential real estate.Blackstone will acquire a 14.3% stake in Kolte Patil Developers through a preferential allotment route. The acquisition will be conducted via BREP Asia III India Holding Co, which is a Blackstone entity.

Additionally, Blackstone has announced an open offer to acquire a 26% stake in the Pune-based real estate firm.Under the agreement, BREP Asia III India Holding Co will subscribe to 1.26 crore equity shares of Kolte Patil Developers. Each share, with a face value of Rs 10, will be issued at a price of Rs 329 per share. The price of Rs 329 per share to Blackstone is at a 2.6% discount to the current market price. The company will raise Rs 417 crore through the preferential issue.

Upon completion of the preferential allotment and the subsequent acquisition of shares from existing stakeholders, BREP Asia III India Holding Co will be classified as a promoter of Kolte Patil Developers.

This move will give Blackstone joint control of the company alongside its existing promoters.

Shares of Kolte-Patil Developers Ltd. are currently trading 1.58% lower on Thursday at ₹333.40.