US investment giant Blackstone near deal to acquire Kolkata’s landmark South City mall
Telegraph | 7 March 2025
US investment giant Blackstone is close to clinching a deal to purchase Calcutta's iconic South City Mall, for as much as $400 million (Rs 3,480 crore), marking one of the biggest Indian mall acquisitions.
Citing people with knowledge of the matter, global media company Bloomberg reported that Blackstone is in “conversations with financiers” to line up funding for the transaction to buy the mall, which is the largest in eastern India.
Blackstone has been working for several months to acquire the sprawling mall, which was built and is owned by South City Developers, which also developed Urbana Kolkata, a large luxury apartment complex.
South City is a consortium of top real estate players led by Pradeep Sureka, who heads the Calcutta-based real estate giant, the Sureka Group. Other owners of South City include Emami Realty and other investors.
Sureka has confirmed that the talks are at a final phase.
The mall, which opened in 2008, has become one of the city’s most popular shopping hubs thanks to its prime south Calcutta location. Spanning over one million square feet, the mall is home to around 170 stores, including international brands like Zara and Marks & Spencer along with popular domestic retail chains. It also has a mix of cinemas, food courts and restaurants.
The proposed purchase would mark the $1-trillion asset manager’s entry into malls in Calcutta, adding to its retail property holdings. Through its Nexus Select Trust, a real estate investment trust, Blackstone has a portfolio of around 18 malls in 14 cities in India, and it has already invested $20 billion in Indian office space and hotels.
Blackstone is aiming to tap into consumer spending, which drives almost 60 per cent of India’s gross domestic product, Bloomberg said. As part of that strategy, it has invested in warehouses to be present in the e-commerce supply chain, and buying the mall would extend its retail presence to brick-and-mortar stores.
One report indicates that a school in Colombo, Sri Lanka, will also be part of the deal. The Calcutta-based real estate developers also controlled projects in Colombo. There are indications that they were rattled by the island’s political upheavals and selling South City would help reduce borrowings.