Blackstone, a prominent global private equity and investment company, is positioned to accumulate substantial profits from its Joint Venture (JV) located in Bangalore.
Residential Project Development
Blackstone, in collaboration with Bangalore-based real estate entity Embassy Property Developments, has outlined intentions to forge a luxury-centric residential endeavor. The Blackstone-Embassy alliance is poised to jointly erect 467 housing units, with the pricing for each unit varying between ₹3 to ₹10 Cr, within the framework of this ambitious project.
Expected Gains and Initial Investment
Blackstone anticipates reaping approximately ₹210 Cr from this collaborative JV. This undertaking signifies their inaugural major investment within the Indian real estate domain. Back in 2011, this global private equity giant channeled funds into Embassy Lakeside Terraces, a meticulously crafted ultra-luxury villa venture. Blackstone foresees gains of around ₹210 Cr from their initial investment, constituting approximately 28% of the overall profit margin.
Project Location and Sales
Their return, realized within a span of 18 months post-investment, showcased an impressive annual growth rate of 40%. Embassy Lakeside Terraces, strategically positioned in Hebbal, enjoys the advantage of being a mere half-hour drive from the Bangalore International Airport. This project further boasts seamless connectivity to the city center. Bolstered by these pivotal factors, the project is experiencing robust sales, empowering investors to amass significant profits.
Investment Portfolio and Market Stability
This American firm has injected nearly $1 billion into the real estate sector of India. Blackstone has procured 16 million sq. ft of leasable commercial space and an additional 9 million sq. ft of residential area. Furthermore, the entity assimilated realty investments previously held by Merrill Lynch.
The Bangalore real estate market is widely regarded as more steadfast compared to other metropolitan hubs like Delhi or Mumbai. Property prices within this Southern Metro City have demonstrated consistency and remained stable. A resurgence in the sales of housing units is also evident within the region.
Discussions on Non-Convertible Debentures (NCDs)
Reports suggest that Embassy Group has conveyed readiness and enthusiasm to repurchase the non-convertible debentures (NCDs) owned by the leading private equity investor firm. However, both Mr. Jitu Virwani, CMD of Embassy Group, and Blackstone officials have refrained from commenting on this particular development.