Blackstone acquires Kolkata's South City Mall for ₹3,250 crore, bolsters India retail portfolio

Global private equity giant Blackstone has acquired South City Mall in Kolkata for ₹3,250 crore. South City Mall is regarded as a crown jewel in East India’s retail landscape. Spanning over one million square feet, the mall features a vast array of international and Indian brands and generates an average annual turnover of over ₹1,800 crore. It features the largest food court in this part of Kolkata, a multi-story parking facility capable of accommodating over 1,250 cars simultaneously, and houses more than 150 stores.

The development comes after Blackstone announced to buy a 14.3% stake in Kolte Patil Developers through a preferential allotment route in March 2025, thus marking its footprint expansion in India’s real estate market.

ANAROCK was the sole transaction advisor in the deal. South City Mall was developed by a consortium of leading real estate players in the region and launched in January 2008. A cultural and retail landmark, it is not just a premier shopping destination but also a vibrant community hub.

As one of India’s largest commercial space owners, Blackstone has made its presence felt across towering office buildings to bustling shopping malls and has more recently extended its footprint in data centres as well.

Asheesh Mohta, Head of Real Estate Acquisitions - India, Blackstone, says South City Mall is a place where the community comes together; it’s the definitive destination in Kolkata for shopping, dining, leisure, and entertainment. "We are committed to continuing South City Group’s wonderful work and positioning South City Mall for long-term success, benefiting from our scale, operational expertise, and deep experience in the retail sector, particularly in India, where we own one of the largest retail portfolios.”

Sushil Mohta, Chairman of Merlin Group and Director of South City Projects, says South City Mall is a prime retail asset in one of the most prestigious and sought-after areas in South Kolkata. "The mall boasts numerous premium retail and lifestyle brands, including Pantaloons, Zara, Shoppers Stop, Tommy Hilfiger, Levi’s, Only, Armani, Calvin Klein, The Collective, United Colors of Benetton, Adidas, PUMA, Fab India, M.A.C, Skechers, and Spencer’s, among others.”

Soumendu Chatterjee, Regional Director - Land, ANAROCK Group, says the transaction showcases ANAROCK's ability to facilitate large-scale, complex deals and its commitment to delivering comprehensive real estate advisory services for marquee assets. "The mall has very high footfall – daily visitors range between 55,000 and 60,000, surging to 75,000–200,000 during weekends and festive seasons.”

The new mall supply is pegged at 16.6 million sq ft across the top 7 cities in CY 2025-26, with Hyderabad and Delhi-NCR expected to have the lion's share. With previous years' demand-supply imbalance gradually normalising, mall vacancy rates are set to stabilise at 8.2% & 8.5% in 2025 and 2026, respectively, as per ANAROCK data. Total mall leasing is also pegged at more than 12.6 million sq. ft. across the top 7 cities over the next two years. The retail boom in India is transcending metros, with Tier 2 and 3 cities becoming consumption hotbeds, and e-commerce outpacing Tier 1 cities with a 56% online shopping share in FY2024, which may touch 64% in FY2030.