Blackstone to acquire up to 40% stake in Kolte Patil Developers

US investment firm Blackstone is acquiring a 14.3 per cent stake in Kolte Patil Developers by way of a preferential allotment of shares. The acquisition is being routed through a Blackstone entity called BREP Asia III India Holding Co. Blackstone will also make an open offer to acquire another 25.7 per cent to take its stake in the Pune-based real estate company to 40 per cent.

Under the agreement, BREP Asia III India Holding Co will initially subscribe to 1.26 lakh equity shares of Kolte Patil Developers of Rs10 face value each. The issue is being made at a price of Rs329 per share, or a total consideration of Rs417.03 crore.

Subsequently, BREP Asia III India Holding Co will make an offer to existing shareholders of Kolte-Patil Developers to acquire another 25.7 per cent shares of the real estate firm, qualifying itself as a promoter. Blackstone will then be entitled to joint control of the company along with existing promoters.

Blackstone has invested heavily in India, across office space, commercial buildings, shopping malls, logistics parks and residential complexes.

Kolte Patil Developers has entered into a Rs120 crore co-development agreement with JP Morgan Asset Management managed entity Metropolitan Lifespace Real Estate Developers for redeveloping Jay Vijay Society in Vile Parle (East) Mumbai.

Kolte-Patil has been heavily dependent on banks and investment funds for its working capital needs. It has tied up funds with domestic and foreign investor funds, including ICICI Venture Capital, J P Morgan, KKR etc. 

The company has also has entered into a Rs120-crore co-development agreement with JP Morgan Asset Management managed entity Metropolitan Lifespace Real Estate Developers for redeveloping Jay Vijay Society in Vile Parle (East) Mumbai.