Blackstone set to earn big profit in Blore's real estate JV

Global investor Blackstone is set for a possible maiden profit from the Indian real estate market, riding on robust luxury apartment sales in Bangalore. Blackstone is exiting a joint venture with southern developer Embassy Property Developments, building 467 residential units, raking in more than Rs 210 crore, said people familiar with the matter. It represents about 28 per cent absolute profit and an annualised return on investment topping 40 per cent in just 18 months, the sources said.

In 2011, Blackstone funded Embassy Lakeside Terraces, developing apartments priced between Rs 3 core and Rs 10 crore, at Hebbal, located 30 minutes away from the Bangalore international airport and the city centre. Blackstone aggressively struck real estate investments, including buyouts of technology parks, investing about $1 billion in the past two years.

This has given the American investor a portfolio of 16 million sqft of tenanted commercial and 9 million sqft of residential space in India. It also took over Merrill Lynch's real estate investments augmenting the residential portfolio. Embassy Lake Terraces is among 1,000-odd luxury residences, priced upwards of $1 million, in Bangalore. The southern metro, with steady home prices, has seen sales recover faster than the bigger cities like Mumbai.