Prestige Estates’ Expansion: Stake Acquisition and Major Deal of ₹2,001 crore

Prestige Estates Projects informed the stock exchanges that the company had acquired a 50% partnership interest in Prestige Realty Ventures and also entered into a Landmark Deal with ADIA and Kotak AIF.

Strategic Developments by Prestige Estates

Leading real estate developers in India, Prestige Estates Projects acquired a 50% partnership interest in Prestige Realty Ventures. With this acquisition, the company will hold a 99.90% partnership interest in Prestige Realty Ventures, which has developed the commercial building Prestige Tech Cloud and Hotel Moxy – Prestige Tech Cloud in Bengaluru.

As per the exchange filing (On March 31, 2024), the nature of consideration for the transaction is cash, amounting to approximately ₹165 crore, which is expected to be settled within the next 90 days. Prestige Realty Ventures is a partnership firm formed in 2009 and is into business real estate development.

In another exchange filing on April 1, 2024, Prestige Estates Projects announced that the company, via its subsidiaries, has entered into a Landmark Deal with Abu Dhabi Investment Authority (ADIA) and Kotak AIF for ₹2,001 crore. This deal aims to capitalise on growth opportunities in the residential sector by developing projects with Gross Development Value (GDV) of ₹18,000 crore across 4 cities, which include Mumbai, Bengaluru, NCR and Goa.

The company said, “The collaboration with ADIA and Kotak AIF represents a considered move towards adopting strong and organic growth for Prestige Group. The deal, with its substantial size, upholds the company’s vision to sustain its leadership position in the industry. It is aimed at catalysing the development of early-stage residential projects, ensuring the company’s commitment to prudent expansion and diversified growth.”

Commenting on the collaboration, the Chairman and Managing Director of Prestige Group, Mr. Irfan Razack, stated, “We are pleased to partner with ADIA and Kotak AIF globally

renowned & sovereign investors with an established track record of promoting sustainable

growth across diverse industries. This marquee deal not only underscores the confidence of

institutional investors in Prestige Group’s execution and corporate governance, but also

reflects our shared commitment to delivering excellence in real estate development pan-India.”

On April 1, 2024, the Prestige Estates share price opened at ₹1,188.00, touching the day’s high at ₹1,258.00, as of 12:10 PM on the NSE.

About Prestige Estates Projects Ltd

Prestige Estates Projects is involved in the business of real estate development, which comprises the development and construction of properties and leasing of office and retail properties.

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