Blackstone to Invest $5 Bn in Mumbai 3.0: What's New for the Financial Capital

The world's largest alternative asset manager, Blackstone, has announced plans to invest up to $11 billion in Maharashtra in MoUs signed with the state government. The investment will also commence its foray into the ambitious Mumbai 3.0 project.

American institutional investor Blackstone has signed three separate agreements with Maharashtra Chief Minister Devendra Fadnavis-led delegations at the World Economic Forum in Davos.

According to an Economic Times (ET) report, the rest of the $11 billion will be used to develop new infrastructure, residential areas, and commercial spaces in the "Third Mumbai" or what is known as Karnala-Sai-Chirner New Town.

Also Read: CNG Price Surges by Rs 2 in Mumbai, Other Cities; Poll-Bound Delhi Spared

What is "Third Mumbai"?

The 324 sq km township was first announced back in 2013 to manage the planned development of areas near the Navi Mumbai Airport Influence Notified Area (NAINA). It was also promoted as the next phase expansion of the Indian financial capital Mumbai after Navi Mumbai.

An ET report citing officials says that Blackstone's investment in the project will be the first by a global institutional investor. It will help develop "hospitality assets, retail malls, and warehousing properties in this new upcoming city."

Karnala-Sai-Chirner New Town includes the Navi Mumbai end of the Mumbai Trans Harbour Link (MTHL). It covers 124 villages, 80 under Navi Mumbai Airport Influence Notified Area (NAINA), 33 under the Khopta New Town Notified Area, two under the Mumbai Metropolitan Regional Plan, and nine under the Raigad Regional Plan.

Last year, the Maharashtra government designated the Mumbai Metropolitan Region Development Authority (MMRDA) as the development authority of the project.

As per the Maharashtra Chief Minister's office, Blackstone will also invest about Rs 25,000 crore ($3 billion) in the Mumbai Metropolitan Region for infrastructure development, which includes data centers.

Additionally, the Blackstone group will invest Rs 25,000 crore ($3 billion) in other parts of the state under an agreement with the Maharashtra Industrial Development Corporation (MIDC). This investment will be done by Blackstone's joint venture with Panchshil Realty.

Blackstone is the largest owner of commercial space in India, with 135 million sq ft of assets, most of which are in Maharashtra. The American private equity giant is also building two data centers in Navi Mumbai.