Blackstone Group is set to acquire South City Mall in Kolkata for a whopping Rs 3,480 crore ($400 million), making it the largest deal in mall space. The deal also includes the purchase of a school property in Sri Lanka. According to sources, both the mall and school are performing well, and most of the negotiations have been completed. This acquisition will mark Blackstone-led Nexus Select Trust’s entry into the Kolkata market.
Notably, the deal is being sealed at a 20% higher value than the Select City Walk, which was included in Nexus Select Trust. Blackstone has already deployed $20 billion in office space and hotels in India and has floated three real estate investment trusts (REITs) with partners. The Nexus portfolio comprises 18 centers with a gross leasable area of 10.4 million sq ft across 14 cities in India.
South City Mall, owned by South City Projects, is the largest mall in eastern India, featuring brands like Zara, Sephora, and Marks & Spencer, along with movie theaters and a gaming arena. Blackstone is also planning to raise $1 billion through an initial public offering (IPO) of a mega REIT next year.
Image Courtesy: Economic Times
