Prestige Group announces strategic acquisition of stake in seven SPVs for Rs 342 crore
Prestige Group, a leading real estate developer and one of the largest mall owners in the country, through its subsidiary has concluded acquisition of CapitaLand’s stake in various SPVs for a total consideration of around Rs 342 crore. With these award-winning properties located in key growth markets across India, the acquisition will boost Prestige’s annuity portfolio with an estimated incremental rental income to the tune of Rs 75 crore per annum. In addition, the acquisition includes a 143 keys operating Oakwood serviced residences at Whitefield in Bengaluru with a revenue of around Rs 190 million and a residential project with a potential developable area of 0.6 million sq ft at Kochi.
Irfan Razack, Chairman & Managing Director, Prestige Group, says, “We are happy to announce this stake acquisition in various malls located in key growth markets. This accretive acquisition is a logical and necessary step in the expansion of our earnings and strengthening of our annuity portfolio. It will also allow us to further leverage India’s consumption and urbanisation trends. Our long-term strategy to create value is to diversify our revenue streams, strengthen annuity base and selectively deploy capital to where its value is high. I would like to thank the various stake holders for their support and contributions in concluding this transaction.”
Venkat K Narayana, CEO, Prestige Group, says, “This move fits well with our strategy of expanding rental income base. Our current estimated exit rental income for FY18 is around Rs 700 crore, annualised. With this transaction, it will grow by another Rs 75 crore per annum. The portfolio under acquisition include five ready and operating retail malls in Bengaluru, Hyderabad, Mangaluru, Mysuru and Udaipur, a Mall management company, operating Oakwood serviced Residences in Bangalore and under construction properties in Kochi.”
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