Blackstone buys South City Mall, Colombo project for 3,250 crore
Kolkata: South City Mall changed hands in what was one of the largest real estate deals in the city and the first mall deal. Blackstone, one of the world's largest alternative asset management funds, has acquired South City Projects, the holding company of the mall, for Rs 3,250 crore.
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Along with the mall, the $1.1 trillion global asset manager has also acquired unsold inventories of South City's Colombo project — Altair, according to sources. South City School, however, will remain with erstwhile promoters.
South City Projects was owned by a consortium that included Emami, Merlin Group, Sureka Group, Shrachi Group, Jugal Khetawat and JB Group.
It was learnt that South City Mall was valued between Rs 2,700 crore and Rs 2,800 crore while the remaining Rs 450 crore-500 crore was for the Colombo project.
For Blackstone, the acquisition represents a strategic entry into the Kolkata market. While the firm already owns 18 malls across 14 Indian cities, the acquisition of South City Mall marks its first major retail investment in eastern India's commercial capital.
Blackstone manages assets worth Rs 9.6 lakh crore worldwide and has deployed Rs 1.7 lakh crore in India's office space and hotels. Anarock Group, a leading independent real estate services firm, served as the exclusive transaction adviser for both acquisitions.
"This transaction represents more than an acquisition — it's a vote of confidence in eastern India and Bengal's economy and retail ecosystem," said Sushil Mohta, chairman of Merlin Group and director of South City Projects.
He highlighted the unique nature of South City Group as a consortium of six prominent Kolkata business families. "We have collaborated successfully for over 25 years. Our consortium itself is a case study in sustained partnership and shared vision," he added.
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Prakash Bachawat, a key stakeholder in South City Projects who stewarded the transaction, expressed enthusiasm about the partnership. "This investment will undoubtedly accelerate the growth trajectory of both assets while maintaining their premium market positioning," he added.
Asheesh Mohta, head of real estate acquisitions - India, Blackstone, said: "We are thrilled to strengthen our presence in India and invest in this iconic asset.
South City Mall is a place where the community comes together — it's the definitive destination in Kolkata for shopping, dining, leisure and entertainment."
Located on Prince Anwar Shah Road, South City Mall is a retail powerhouse generating an average annual turnover of Rs 1,800 crore. The mall is spread across 12.5 lakh square feet with a gross retail area of 6.5 lakh square feet. The mall sees 30,000-40,000 footfalls on weekdays and 75,000-1.5 lakh on weekends.
It houses around 150 stores anchored by major brands such as Shoppers Stop, Pantaloons, Spencers and a six-screen Inox multiplex and the region's largest food court. It also hosts premium brands such as Zara, Tommy Hilfiger, Armani, Calvin Klein and Adidas, alongside dining favourites Chili's, Mainland China as well as a Starbucks.
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