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Starwood Capital and Walton Street Capital, two US real estate investment firms, have teamed up to invest in a $1.25bn property development in Kolkata, India, that will rank as one of the largest private equity deals in the country. The buyers will team up as equal partners with Shriram Properties, an Indian developer, to launch the project on 20m sq ft of land previously occupied by a Hindustan Motors plant. It will be classified as a “township” including residential, retail and commercial real estate properties designed by HOK, the architecture firm. Barry Sternlicht and Neil Bluhm, who run Starwood and Walton Street respectively, are expected to remain closely involved in the project. The exact capital structure of the investment was not disclosed, and is likely evolve as the project unfolds. People close to the deal, which is expected to be announced on Tuesday, said it reflected India’s ability to absorb a new supply of property developments and the business-friendly nature of Kolkata’s regional government.