The Competition Commission of India (CCI) has approved the acquisition of stakes in Bagmane Developers and Bagmane Rio by Blackstone’s subsidiary, BREP Asia III India Holding Co VIII, , as published by The Economic Times.
Blackstone, a U.S.-based alternative asset manager with over $1 trillion in assets under management (AUM), will acquire a significant share in these companies involved in commercial real estate development, hospitality, and renewable energy generation.
On December 10, 2024, the CCI confirmed the approval of the proposed combination, which involves the acquisition of certain shares in Bagmane Developers Pvt Ltd and Bagmane Rio Pvt Ltd by Blackstone’s BREP Asia III India Holding Co VIII.
The regulatory body noted that the target entities, Bagmane Developers and Bagmane Rio, are involved in various businesses, including the development, leasing, and operation of commercial real estate and hospitality ventures, along with the generation of renewable power.
The approval clears the way for Blackstone to strengthen its position in India’s growing commercial real estate and hospitality sectors, making it one of the key foreign investors in the country’s infrastructure development.
Blackstone’s decision to acquire a stake in Bagmane Developers and Bagmane Rio is part of its broader strategy to expand its real estate portfolio in India. As the largest alternative asset manager globally, Blackstone has a history of significant investments in India, particularly in real estate and infrastructure. The firm’s $1 trillion in AUM reflects its growing influence in key markets, and its involvement in Bagmane is expected to further enhance the development and leasing of commercial properties in the country.
Bagmane Developers and Bagmane Rio are recognized for their high-quality commercial properties, especially in prime urban locations, which make them attractive to multinational companies seeking office space in India’s major cities. In addition to office spaces, Bagmane’s focus on hospitality projects further aligns with Blackstone’s strategy to expand in India’s thriving service sectors.
This acquisition by Blackstone reflects the increasing interest of foreign investors in India’s commercial real estate market. The country’s rapid urbanization, growing corporate demand for office spaces, and the booming hospitality sector continue to attract major investments. Blackstone’s move into these sectors not only strengthens its real estate portfolio but also signals the firm’s commitment to India’s economic growth.
Moreover, the increasing demand for environmentally sustainable infrastructure is also evident in Bagmane’s involvement in renewable energy generation. As global corporations place more importance on sustainability, the addition of renewable energy capabilities in Bagmane’s portfolio makes it an even more appealing investment, potentially attracting tenants with strong sustainability goals.
In addition to approving Blackstone’s acquisition, the CCI also granted approval for other significant transactions. Among them was the acquisition of thyssenkrupp Electrical Steel India by Jsquare Electrical Steel Nashik. Thyssenkrupp India is a key manufacturer of grain-oriented electrical steel (GOES), while Jsquare Electrical Steel Nashik, a subsidiary of JSW JFE Electrical Steel, is set to begin operations in 2027. The CCI also approved the acquisition of an equity stake in India Business Excellence Fund IV by VVDN Technologies Pvt Ltd, which will help the firm expand its electronic manufacturing services.
Blackstone’s acquisition of stakes in Bagmane Developers and Bagmane Rio is a landmark deal in India’s real estate sector, with far-reaching implications for both commercial real estate and hospitality development in the country. This move enhances Blackstone’s presence in India, a growing market that continues to attract global investment. As India’s economy evolves and demands for modern infrastructure rise, foreign investments like Blackstone’s will play a crucial role in shaping the country’s real estate landscape.