Prestige Estates secures ₹2,001 crore investment deal with ADIA, Kotak AIF
Prestige Estates Projects has entered into a deal with Abu Dhabi Investment Authority and Kotak AIF to invest ₹2,001 crore in residential projects with a gross revenue potential of ₹18,000 crore across four major cities in the country.
The land and projects have been already identified for the four residential developments that will be coming up in Goa, Bengaluru, Mumbai and the National Capital Region with a cumulative area of 14 million square feet. “We see a lot of growth opportunities, there is a lot of momentum still on the demand side,” Venkat K Narayana, Group CEO of Prestige Group told businessline.
Speaking on the details of the deal, Narayana said that the investments will be jointly made by the three companies. Prestige group will be putting in 30-40 per cent of money as well as contributing the land and the balance would come in from ADIA and Kotak AIF.
The projects will be launched in 9-12 months time with the aim to launch a project every quarter, and then completed over the next 3-4 years. In Mumbai the proposed project will be of premium category, in Goa mid-level and in Bengaluru and NCR it will be upper mid-income, Narayana said. He added that once the four projects are launched, they would be looking at further strengthening their association.
The deal with ADIA and Kotak AIF was part of Prestige group’s organic growth strategy and to develop early-stage residential projects. “These funds will fuel the development of greenfield residential projects across the cities of Bengaluru, Mumbai, Goa, and NCR,” said Narayana, adding that the deal was an outcome of the increasing demand for housing and the consolidation in the sector.
The deal was a mark of the confidence that institutional investors reposed in the company, Chairman and Managing Director Irfan Razack said.
The Bengaluru-based realtor has been spreading its wings across the country, and in just three of its launches, has met with spectacular success in Mumbai, the biggest real estate market in India in value terms. It is also making its entry into the NCR real estate market.
Comments