Prestige Group, a leading real estate developer in the country, through its wholly-owned special purpose vehicle (SPV) is acquiring 66.66 per cent stake from private equity partner Red Fort India Real Estate and land owners in its group company – Prestige Projects (PPPL). The company already owns 33.34 per cent. PPPL has a land parcel measuring over 180 acre, which is located near Sarjapur Road, Bengaluru. Prestige Group intends to develop a large scale affordable and mid-income housing project comprising of apartments, villas and plots with various lifestyle amenities and necessary social infrastructure such as Retail shopping Mall, sports facilities, etc.
Irfan Razack, Chairman & Managing Director, Prestige Group, said, “Our long-term strategy to create value is to diversify our revenue base, expand earnings and strengthen our development pipeline. This transaction will help us enter into the affordable housing segment in a big way. The proposed project in the SPV has a significant potential to grow our profitable revenue base and further strengthen our market share in the micro-market. We intend to develop a large scale affordable and mid-income housing project comprising of apartments, villas, plotted developments with various lifestyle amenities. The proposed project is strategically located with close proximity to the commercial and industrial catchment areas.”
Venkat K Narayana, CEO, Prestige Group, said, “This strategic acquisition of 66.66 per cent stake will move PEPL’s stake in SPV to 100 per cent ownership. The consideration for the same is around Rs 324 crore. This transaction fits well with our strategy of entry into new affordable housing segment, which has huge demand and potential for growth. The total developable area of the project will be around 7.5 million sq ft approximately, and we estimate top line revenue potential of over Rs 3,500 crore from this development.”