Blackstone Acquires 26% Stake in Kolte-Patil Developers

New Delhi, Mar 17 (PTI) Global investment firm Blackstone has launched an open offer to acquire up to 26 per cent stake in Pune-based realty firm Kolte-Patil Developers Ltd from public shareholders for Rs 758.56 crore.

Last week, Kolte-Patil Developers announced that Blackstone would acquire a 40 per cent stake in the company for Rs 1,150 crore, entering into Indian residential market after having a significant exposure in office, shopping mall, warehousing and date centre verticals of real estate.

Blackstone affiliated firm will acquire a 14.3 per cent stake for Rs 417 crore through a preferential issue of equity shares and another 25.7 per cent stake from the promoters group for Rs 750 crore.

In a regulatory filing on Monday, Kolte-Patil Developers informed that Blackstone Group affiliated firm BREP Asia III India Holding Co VII Pte Ltd together with Blackstone Real Estate Partners Asia III L P and Blackstone Real Estate Partners (Offshore) X.TE-F (AIV) L P have launched an open offer for acquisition of up to 2.30 crore shares of Kolte-Patil Developers, representing 26 per cent of the emerging voting capital, from the public shareholders.

The open offer has been launched at Rs 329 per share aggregating to a total consideration of up to Rs 758.56 crore.

"Blackstone will acquire up to 66 per cent stake in Kolte-Patil Developers for a commitment of about Rs 1,800 crore," the filing said.

On March 13, Kolte-Patil Developers' board approved issuance by way of a preferential allotment on a private placement basis an aggregate of 1,26,75,685 equity shares of the company at Rs 329 per share, aggregating to Rs 417.03 crore to BREP Asia III India Holding Co VII Pte. Ltd.

That apart, Blackstone affiliated firm will acquire another 25.7 per cent from the promoters group. Blackstone will purchase 2,27,96,353 equity shares (being 25.7 per cent) from the sellers at Rs 329 apiece.

The global investment firm will acquire joint control along with the promoters over the company. At present, promoters hold a 69.45 per cent stake in the company.

Rajesh Patil, Chairman, Kolte-Patil Developers, said, "This landmark partnership with Blackstone marks a defining moment in Kolte-Patil Developers' growth story and our commitment to creating long-term value for our stakeholders.

Asheesh Mohta, Head of Real Estate Acquisitions - India, Blackstone, said, "Blackstone has built leading platforms across office, retail, logistics, hotels and data centres, and this investment marks our strategic entry in the Indian residential sector."

"The sector is underpinned by strong tailwinds including a growing middle-class population and rapid urbanisation. We see potential to serve Indians increasingly looking for high-quality homes and continue our mission of investing in and improving residential properties around the world," Mohta added.

Blackstone aims to double its exposure in India to USD 100 billion.

The firm, which has been present in the country for the last two decades, has a USD 50 billion exposure to India, which includes its ongoing investments and the bets from which it has exited.

Blackstone has significant exposure in the Indian real estate sector, mainly in office space, shopping malls and warehouse assets.

Recently, Sattva Group and Blackstone sponsored Knowledge Realty Trust filed the Draft Red Herring Prospectus (DRHP) with SEBI to launch its REIT public issue for raising up to Rs 6,200 crore.

For Blackstone India Real Estate business, this will be the fifth public listing, including three listed REITs and one of Ventive Hospitality.