Blackstone lines up Rs. 1,000 crore for residential realty.

Blackstone, one of the largest investors in commercial properties, is set to step up presence in the residential segment, said a top executive in the know. According to him, who spoke on the condition of anonymity, the US private equity (PE) giant is gearing up to invest about Rs. 1,000 crore in residential projects across Indian metros. The company is currently in advanced discussions with many developers, the executive revealed.

Recently, the New York- based fund invested Rs. 175 crore in the Chennai project of Bangalore-based Ozone Group, its first investment in the residential sector.

Blackstone, which has invested about $1 billion in commercial properties in India, has so far stayed away from directly investing in residential properties. However, it had exposure to residential real estate by the virtue of taking over the $2.68-billion Asian Real Estate Opportunities Fund of Bank of America-Merrill Lynch (BofA-ML) in 2010. The most high-profile one in BofA Merrill Lynch's India portfolio being its $377-million (Rs. 1,800 crore) investment in DLF's housing projects. It picked up 49 per cent stake in seven mid-income housing projects of DLF, the country's largest property company, in Chennai, Bangalore, Kochi and Indore.


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