Blackstone taps Citigroup to raise $200 million for South City Mall in Kolkata

Blackstone Inc, one of India’s largest landlords, is tapping Citigroup Inc. to raise at least $200 million-equivalent to back its purchase of South City Mall in Kolkata, according to people familiar with the matter.

The bank is planning to syndicate the debt among local and global investors including private credit funds, said the people, who asked not to be identified discussing private matters.

Details of the financing, including the debt’s format, are still under discussion, the people added.

Blackstone didn’t immediately respond to an email seeking comment. Citigroup’s India unit declined to comment.

India continues to be a major growth market for many global firms. The country’s property industry in particular remains an important sector, attracting 43 per cent of investments in the second half of 2024, according to a report by Ernst & Young. Investors such as Ares Management Corp. see opportunities in acquisition and real estate financing.

Blackstone, which has deployed $20 billion in office space and hotels in India, is nearing a deal to acquire South City Mall for as much as $400 million. If the deal materializes, it would mark the firm’s entry into retail malls in Kolkata, one of the largest cities in the country.

The credit facility will be denominated in the Indian rupee, said one of the people.