Blackstone to Acquire Kolkata’s South City Mall in Landmark 3,480 Crore Deal

Global investment giant Blackstone Group is set to acquire South City Mall in Kolkata for 3,480 crore ($400 million) in what is being hailed as the largest mall acquisition in India. According to sources, the deal also includes the purchase of a school property in Sri Lanka.

Major Expansion for Blackstone in India

Industry insiders reveal that negotiations are nearly complete, with the deal priced approximately 20% higher than Select City Walk, which was previously added to Blackstone’s Nexus Select Trust portfolio. This acquisition marks Blackstone’s official entry into the Kolkata retail space.

While Blackstone has not commented on the deal, and South City Projects remains unavailable for confirmation, the acquisition is expected to boost the region’s commercial and retail real estate sector.

Blackstone’s Growing Real Estate Footprint

As one of the world's leading asset managers with $1.1 trillion in assets under management, Blackstone has already invested $20 billion in office spaces and hotels across India. The firm has successfully launched three Real Estate Investment Trusts (REITs), including Nexus Select Trust, which focuses on retail properties.

Currently, Nexus Select Trust’s portfolio spans 18 shopping centers across 14 cities, totaling 10.4 million sq. ft. of leasable space. Additionally, it includes two hotel assets with 354 keys and three office assets covering 1.3 million sq. ft.

South City Mall: Kolkata’s Premier Retail Destination

Owned by South City Projects, a consortium of Kolkata-based real estate developers, South City Mall is the largest shopping destination in eastern India. It features multiplex cinemas and entertainment zones, offering a diverse shopping and leisure experience.

Blackstone’s Future Plans & REIT Expansion

Alongside this acquisition, Blackstone and its partners—Sattva Group and Panchshil Realty—are preparing for a $1 billion (8,400 crore) IPO for a mega REIT in 2025. This follows their earlier success in launching REITs with partners like Embassy Group and K Raheja Corp.

Beyond retail, Blackstone is actively expanding its warehousing and data center business in India, reinforcing its commitment to long-term investment in the country’s real estate market.

Conclusion

With the acquisition of South City Mall, Blackstone strengthens its presence in India’s booming retail sector. This move not only underscores the growing importance of Kolkata’s commercial real estate but also sets a benchmark for future large-scale real estate investments in India.

By LNN (Liyaans News Network)