March 13 (Reuters) - U.S. investment firm Blackstone

will purchase a 40% stake in Indian real estate developer

Kolte-Patil Developers in a deal worth 11.67 billion

rupees ($134 million), the latter said on Thursday.

Kolte-Patil will allot a Blackstone entity 14.3%

preferential shares in a deal worth 4.17 billion rupees, while

its controlling shareholders will sell another 25.7% to the U.S.

firm for about 7.5 billion rupees.

According to Indian market regulations, the sale will

trigger a so-called open offer for Blackstone to buy up to 26%

shares from existing shareholders.

Blackstone, which entered India 20 years ago, counts India

among its biggest markets, and is also one of the country's

largest owners of office buildings, data centres, shopping malls

and logistics parks.

Kolte-Patil builds residential as well as commercial

complexes and has a presence in the cities of Mumbai, Pune and

Bengaluru. Its shares closed 2.3% higher at 346.65 rupees in

Mumbai after the news.

($1 = 87.0100 Indian rupees)

(Reporting by Nandan Mandayam in Bengaluru; Editing by Mrigank

Dhaniwala)