Blackstone Group is foraying into India’s rapidly growing housing property market, marking a strategic shift after leading the country’s commercial property space, with clear focus on the mid-income and premium segment of the market to begin with, said persons familiar with the plan.
While the global alternative asset management firm has already established itself as India’s largest office and logistics landlord, and expanded aggressively into data centers, the proposed acquisition of listed company Kolte Patil Developers, marks its first big bet on housing market.
“The plan goes beyond investment to building execution and development capabilities, with no capital constraints for growth. Previously, assets were acquired and consolidated, as seen with Nucleus Office Parks, Horizon Industrial Parks, and Nexus Select. In contrast, the strategy for housing focuses on establishing the platform first and then adding assets,” said one of the persons mentioned above.
Blackstone is set to acquire the Pune-based company with a preferential allotment of shares equivalent to 14.3% equity in the first stage, and 25.7% post-issue stake from promoters after that. An open offer for an additional 26% from the public will also be launched, bringing Blackstone’s total commitment to roughly Rs 1,800 crore for a 66% stake in the development company.
The global investment major will initially deepen its presence in cities where Kolte-Patil already operates including Pune, Mumbai, and Bengaluru. The firm is expected to focus on expanding projects in these key metro markets before evaluating entry into other prominent real estate hubs across India led by urbanisation.
“Blackstone sees immense potential in India’s housing market, particularly in the mid and premium segments. The company is taking a measured approach by strengthening its presence in existing high-growth locations before exploring other key regions,” said another person.
Kolte-Patil Developers, as an established brand in the residential sector, is expected to play a critical role in executing Blackstone’s vision. The partnership will likely leverage Kolte-Patil’s local expertise with Blackstone’s financial and management strength ensuring a smooth entry into the residential space.
Blackstone’s foray into Indian housing underscores the growing institutional interest in the sector. With deep pockets and a proven track record in real estate, the firm’s expansion is expected to bring fresh momentum to India’s residential market, offering homebuyers more choices in the mid and premium segments.
Blackstone declined to comment for the story.
Blackstone has been one of the largest investors in the country with over $50 billion assets under management since its entry in India. Stephen Schwarzman, founder and CEO of Blackstone told ET last week that the company aims to build $100 billion worth of businesses.
In India, Blackstone has developed Nucleus Office Parks, a commercial real estate platform. Nucleus alongside Sattva has filed papers for Asia’s largest REIT. In logistics, Blackstone has emerged as a leader with 55 million sq ft of assets under Horizon Industrial Parks. Ventive Hospitality listed in December 2024 with hotel assets of Blackstone and Panchshil, while Nexus Select Trust with retail malls listed in May 2023.
The company has taken aggressive bets in the Indian real estate sector across commercial office, retail, logistics, hotels, data centres in key cities including Bengaluru, Hyderabad, Pune, the National Capital Region, Chennai and Kolkata, apart from Mumbai region.
Blackstone is a major player in the global residential real estate market, with significant investments across the United States, Europe, and Asia. The firm has built a strong portfolio in the housing segment, ranging from rental housing and multifamily apartments to luxury developments and affordable housing projects.
In the U.S., Blackstone owns thousands of rental homes and has a substantial presence in student housing and senior living. In Europe, the firm has expanded its footprint in key markets such as the U.K., Germany, and Spain, focusing on both rental and for-sale housing.
Blackstone’s global housing strategy is driven by its ability to identify high-demand markets, leverage large-scale capital, and enhance operational efficiency, making it one of the most influential investors in the sector worldwide.
