Blackstone Real Estate Partners to invest in property development firm Synergy
28 April 2008
Bangalore: Blackstone Real Estate Partners, the Indian affiliate of The Blackstone Group L P is investing approximately $18 million in Synergy Property Development Services Private Ltd for for a minority stake with board representation.
Global alternative asset manager and provider of financial advisory services, The Blackstone Group L P manages corporate private equity funds, real estate funds, funds of hedge funds, mezzanine funds, senior debt vehicles, proprietary hedge funds and closed-end mutual funds.
The developer specialises in architectural design and fitouts, complete project management and turnkey contracts. Its portfolio includes the India's largest hospital cluster development, Medicity in Gurgaon, Select Citywalk in Delhi, the HCC-ICICI Tech Park and Runwal Town Centre in Mumbai, the Park Hyatt hotel in Chennai, and the Manyata Business Park and Embassy Golf Links in Bangalore.
"Our vision for partnering with Blackstone is to combine our individual strengths and build a strong platform to deliver world class products in the Indian and global real estate market," said Sankey Prasad, managing director, Synergy. "In addition, part of the proceeds from this transaction will make possible a wealth creation and retention programme for each and every employee of Synergy, so that we can continue to foster our entrepreneurial culture as we grow."
Formed in 2003, the Bangalore-based Synergy delivered over 20 million square feet of real estate and is presently managing over 100 million square feet across various asset classes including office, retail, residential, hotels and hospitals. The company plans to expand into infrastructure projects.
"In the longer term, we believe there will be attractive real estate investment opportunities that follow from this partnership," said Chad Pike, senior managing director and London-based co-head of Blackstone's real estate group.
Tuhin Parikh, managing director, Blackstone's real estate group in Mumbai, said "We look forward to using Blackstone's global platform to support the continued growth of Synergy as it delivers on its long-term growth plan."