In a landmark transaction, Blackstone Group, the US-based private equity giant, has acquired the prestigious One BKC office building in Mumbai’s Bandra Kurla Complex (BKC) for ₹2,500 crore. This marks the largest commercial real estate deal in India this year. The eight-storey building, developed by Radius Developers, spans 700,000 square feet and is fully leased to top-tier multinational corporations, including Bank of America, Facebook, Merrill Lynch, Cisco, and Amazon.

One BKC is a highly sought-after Grade A property known for its prime location and full occupancy by major global players. “There is no building like this in BKC, which is 100% let out, especially to large multinational companies,” said a source familiar with the deal. Despite the significance of the transaction, both Blackstone and Radius Developers have chosen not to comment publicly.

This acquisition is part of Blackstone’s broader strategy to dominate India’s commercial real estate market. Over the years, Blackstone has aggressively expanded its portfolio in the country, investing $5.4 billion across 33 projects, with $4 billion dedicated solely to office assets. The One BKC deal also facilitates the exit of Indiabulls Housing Finance from the project, as Radius had previously secured a ₹1,600 crore loan from Indiabulls to develop the property.

Blackstone’s ambitions in India extend beyond this acquisition. The firm reportedly wants to purchase Adani Realty’s Inspire project in the same area for approximately ₹1,900 crore. This move underscores Blackstone’s commitment to expanding its presence in India’s lucrative commercial real estate sector.

Blackstone-backed Embassy Group launched India’s first real estate investment trust (REIT) in March, valued at ₹4,750 crore. The Embassy Office Parks REIT includes around 33 million square feet of office space across major cities like Bengaluru and Mumbai, further solidifying Blackstone’s foothold in the Indian market.

The acquisition of One BKC is not an isolated event; other global private equity firms and sovereign wealth funds, such as Canada’s Brookfield Asset Management and Singapore’s GIC Pvt. Ltd, are also eyeing India’s Grade A office spaces. These firms want to capitalise on the growing demand for premium commercial properties in key Indian cities.

According to a report by Knight Frank, office rents in Bengaluru and Mumbai increased by 17% and 5%, respectively, in the first half of the year, driven by strong demand and limited supply. Delhi also saw a modest rise in prime office rents. This trend highlights the increasing attractiveness of India’s commercial real estate market to global investors.

Blackstone’s latest acquisition of One BKC is a testament to its aggressive growth strategy and the escalating demand for high-quality office spaces in India. As global interest in India’s commercial real estate market continues to rise, Blackstone remains at the forefront, securing key assets that will shape the future of office spaces in the country.