Leading global private equity and investment firm Blackstone is likely to gain huge amount of profit from its project in Bangalore, a joint venture along with Embassy.
Joining hands with Bangalore– centered real estate firm Embassy Property Developments; Blackstone has developed a residential project. The luxury-oriented residential project will have 467 housing units. Each unit is priced between Rs.3 to Rs. 10 Cr. The private equity giant expects to gain around Rs.210 Cr from the project.
Their joint venture with Embassy is their first bigger real estate investment in Indian subcontinent. It was in 2011 that Blackstone invested in Embassy Lakeside Terraces. Within 18 months after their investment in this ultra-luxury villa project they are able to reap a handful of returns.
Rs.210 Cr profit represents around 28% of the absolute profit. It means that they had witnessed a 40% growth rate per year.
Embassy Lakeside Terraces is located at Hebbal. It is just half-an-hour drive away from Bangalore International Airport. Moreover the project has better connectivity to the City Centre. All these factors played key roles in the success of this project which is sold robustly. This in fact enabled the investors gain a huge amount of profit within a short period of time.
Blackstone has invested nearly $1 billion in Indian real estate market now. The American private equity firm has bought 16 million sq. ft. of commercial area. The commercial area has been leased. Besides the commercial area, the firm has bought another 9 million sq. ft. of residential area too.
Adding to all the above said investments, they have taken on the realty investments of Merrill Lynch.
Realty market in Bangalore is more stable than that of the other metro- cities like Delhi or Mumbai where the property prices are inconsistent. On the other hand the property prices in Bangalore are consistent always. This nature is mainly due to the fact that the real estate market in the area is mainly dependent on end-users and not on investors. On the other hand the other cities are depending on investors and not on end-users.
