Blackstone prepares for exit from Synergy

Blackstone, the global private equity (PE) giant, is setting the stage for a blockbuster exit from Bangalore-based Synergy Property Development Services, a privately held construction management company.

It is understood that Blackstone is in the final stages of mandating a banker for the exit and has valued Synergy at Rs 500 crore, a doubling from the time it had invested during 2008.

This comes at a time when many private equity funds are grappling with fund shortage, as investments have soured.

Blackstone did not respond to queries. Sankey Prasad, founder of Synergy, said he was not aware of such a move.

Blackstone had invested Rs 85 crore for a 35 per cent stake in Synergy, marking its entry into the real estate market in India. Subsequently, Blackstone made investments close to $500 million (Rs 2,800 crore) in the sector. Synergy has delivered 120 million sq ft of built-up spaces to global clients across commercial, retail, healthcare, hospitality and residential segments. It is understood to have a top line of Rs 300 crore, with hardly any debt, and healthy margins. It has an order book of around Rs 1,200 crore and employs 700 people.

Some of Synergy’s landmark projects include Medicity, a hospital cluster development in Gurgaon; Select Citywalk Retail in Delhi; Park Hyatt in Chennai; Manyata Tech Park in Bangalore; Hilton Residences in Bangalore and developments for the Taj Group in Kovalam.

Even as Synergy is establishing in India, its presence abroad is also strengthening. Recently, it bagged a $153-million project in Rwanda, for the Social Security Board there.