Blackstone nears $400 million deal for Kolkata’s South City Mall

By Preeti Singh and Saikat Das

Blackstone Inc, one of the largest landlords in India, is nearing a deal to acquire South City Mall in Kolkata for as much as $400 million, according to people with knowledge of the matter.

The $1.1 trillion asset manager, which has deployed $20 billion in office space and hotels in India, is in conversations with financiers to line up funding for the transaction, said the people, who asked not to be identified discussing confidential information.

The shopping mall is owned by South City Projects (Kolkata) Ltd, a joint venture of several real estate developers based in the city, and is the largest in eastern India, according to its website. It has brands like Zara, Sephora and Marks & Spencer in addition to movie theaters and a gaming arena.

Blackstone is looking to tap into consumer spending that drives almost 60per cent of India’s gross domestic product, the people said. The firm has been investing in warehouses that capture the boom in e-commerce, and the mall acquisition would extend that to brick and mortar stores, they added.

Representatives from Blackstone declined to comment. South City Projects didn’t immediately respond to an email seeking comment.