First from L&T to Carnival Group and now the real estate giants are again in the final leg of negotiations to shift ownership of Chandigarh’s iconic Elante Mall to Blackstone.
Blackstone is a US-based private equity firm which has expressed its interest in buying Carnival Group’s property in Chandigarh.
The deal size is expected to be of whooping ₹ 2,200 crore, one of the largest commercial property deals this year after private equity (PE) firm Xander group acquired 4.6-million-square-feet (sq ft) Special Economic Zone of Shriram Properties and Sun Apollo, a PE fund manager. Carnival boasts the commercial property of the size about 1.8 million sq ft, including 1-million-sq-ft mall, a Hyatt Hotel, and some office space. In 2015, Carnival bought the property from L&T Realty, an arm of Larsen and Toubro for Rs 1,785 crore, and if this deal is finalised at ₹ 2,200 crore, Carnival Group will make close to 23% profit.
ABOUT BLACKSTONE
- Blackstone has steadily built its mall portfolio over the last year and a half. It currently has mall space of 3 million sq ft. Atul Ruia-led Phoenix Mills is the biggest mall owner, with a portfolio of six million sq ft.
- In 2015, Blackstone acquired AlphaOne malls in Ahmedabad and Amritsar for Rs 800 crore. It has revamped and rebranded the malls since then.
- Last year, Blackstone bought a 1-million-sq-ft mall in the Seawoods area in Mumbai from L&T Realty for Rs 1,400 crore. According to sources, its mall portfolio is valued at Rs 1,800 crore. Recently, it also bought a 50 per cent stake in West End mall in Pune.
Source: Business Standard
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