CCI Approves Blackstone's Acquisition Of Pune Realtor Kolte-Patil Developers
The acquisition does not raise any competition concerns in any relevant markets, says the Competition Commission of India.
The Competition Commission of India approved on Tuesday US private equity major Blackstone's acquisition of Pune-based realtor Kolte-Patil Developers Ltd.
"CCI approves the acquisition of certain shareholding in Kolte-Patil Developers Limited by BREP Asia III India Holding Co VII Pte. Ltd," the agency said in a post on X.
The deal was announced in March. The Blackstone entity had acquired 14.3% stake in the company for Rs 417.03 crore through a preferential allotment route. Subsequently through a share purchase agreement, Blackstone can now acquire a 26% stake for Rs 759 crore.
With 40% shareholding, BREP Asia III India Holding Co. will be classified as one of the promoters of Kolte Patil and will have joint control, after the agreement is completed.
An open offer for an additional 26% stake will be made to minority shareholders.
"The Proposed Combination does not raise any competition concerns in any relevant markets... From the Acquirer’s perspective, the Proposed Combination provides an opportunity to invest in the rapidly growing residential real estate market in India," the CCI said in its order.
So far, Blackstone has primarily invested in platforms catering to commercial real estate, retail assets, office spaces, data centers, and warehousing. The Kolte-Patil acquisition provides Blackstone a foothold to expand into the residential rental business and acquire future assets in this sector.
Kolte-Patil has a strong presence in Pune, recognised as an IT hub in Maharashtra. The company is also making inroads in Mumbai and Bengaluru. The company is expected to transition from residential sales to student housing and rental housing targeted at the IT workforce in key service markets, such as Pune, Bengaluru and Mumbai.
