Global private equity fund Blackstone is set to fully acquire Gurgaon-based real estate company Alpha G: Corp Development Pvt Ltd for about $242 million (Rs 1,600 crore) from its existing investors, said a report in The Economic Times. The acquisition of Alpha G: Corp will further expand Blackstone’s real estate portfolio in India.
The announcement on the acquisition is expected in the next few days even as the Indian real estate market remains under stress causing a slowdown in the overall economic growth of the country.
The full buyout of Alpha G: Corp will see existing investors – including private equity firm C&C Alpha holding 50 per cent of the stake in the company, G: Corp holding 30 per cent, and Morgan Stanley holding 15 per cent equity -exiting the real estate company.
The current management team, however, may continue to run the operations of the company for Blackstone, the report said.
Formed in 2003, Alpha G: Corp’s real estate portfolio includes condominiums, integrated townships, corporate offices, retail city centres and industrial parks. The company owns two grade A office towers on Gurgaon’s Golf Course Road spanning 200,000 square feet, two malls in Amritsar and Ahmedabad totaling 1.2 million square feet and a 147-acre industrial park in Amritsar.
Alpha G: Corp is currently sitting on a debt of about Rs 400 crore. With the acquisition, Blackstone will also take over the company’s debt.
Blackstone’s is the largest owner of office assets in the country with nearly 32 million sq ft of office space across cities including Mumbai, Bengaluru, the National Capital Region (NCR) and Pune. The firm is accelerating its acquisition pace in India. Its first investment in the real estate space was in 2008 when it had acquired Bengaluru-based Synergy Property Development Services. Earlier this year, Blackstone bought Oxygen, a special economic zone in the NCR, from 3C Company for around Rs 620 crore.
Real estate plays a central role in our economy with construction activity accounting for about for 50 per cent of the country’s capital expenditure. According to the NSSO, one in three jobs created in India in the past decade has been in the real estate sector.