Blackstone Real Estate Partners, an affiliate of New York-based private equity firm The Blackstone Group, has exited its investment in Bengaluru-based real estate project management consultancy Synergy Property Development Services.
“After seven years, there is a closure of fund and, hence, we bought 50 per cent of the 35 per cent stake Blackstone hold,” said Sankey Prasad, chairman and managing director at Synergy Property Development Services. “First tranche payment has also been completed at the personal level.”
He did not disclose the size of the transaction.
Blackstone, which was also on the board of Synergy, had invested `. 56 crore in the company for a minority stake in 2008. This was the PE firm’s first real estate investment in the country. Synergy Property Development Services is valued at `. 520 crore.
“Post the acquisition, the company promoter will hold 82 per cent stake in the firm. If Blackstone wants to further offload their stake, we do not mind looking at it,” said Prasad.The world’s largest real estate PE firm has been acquiring rental yield properties across major cities like Mumbai, Bengaluru, Delhi and Pune. It had also entered into a joint venture with Panchshil Developers in Pune and Embassy Group in Bengaluru to buy commercial assets.Since late 2009, Blackstone’s real estate funds have invested $1.1 billion in the Indian real estate sector.
“Synergy has and continues to be a valuable partner for us in our real estate platform in the country,” said Tuhin Parikh, senior managing director-real estate at Blackstone.
“During the course of our investment, Synergy has delivered 62 million square feet across marquee projects and has seen operations grow from three countries to across 10 countries.”
Most of the funds that invested in the Indian real estate sector in 2007-08 are exiting their investments.
However, much of the exits have come by way of refinancing by builders, as providing exits from cash flows is still not possible due to slow home sales.READ ALSO – Chinese interest grows in Canberra real estate
According to Venture Intelligence, PE funds and non-banking finance companies have secured exits worth $633 million in the first nine months of 2015 as against $84 million in the yearago period.
Synergy is in project management consultancy business across industries like commercial, high-end residential pro ects, hospitality, industrial parks and health care in India and globally.
The company has delivered 100 million sq ft in the last 13 years and has 150 million sq ft under management. It employs over 900 professional globally and operates across India, West Asia and the Far East.