Real estate developer, Prestige Group, has successfully raised a total of Rs 2000 crore in a residential platform deal with Abu Dhabi Investment Authority and Kotak Alternative Investment Fund. This marks the first and largest residential platform deal by ADIA and will aid in expanding the group’s residential portfolio.
The raised capital, a quasi-debt instrument, will be utilized to capitalize on growth opportunities in the residential sector by developing projects with a gross development value (GDV) of Rs 18,000 crore, spread across four major cities in India.
“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,” said Irfan Razack CMD Prestige Group.
The funds will be allocated towards the expansion of significant residential development, primarily township projects, which the firm has already identified as its core focus.
“The current market scenario of the sector demands rapid growth and consolidation. In this context, the deal can play a crucial role in accelerating the expansion of the business. The funds from the deal will help to develop new residential projects in greenfield areas across Bangalore, Mumbai, Goa, and the NCR region. This initiative will have a significant impact on the overall revenue generation of the business,” said Venkat K Narayana, CEO of Prestige Group.
This deal marks the first-ever platform deal for the group, and it is expected to have significant implications for the real estate sector. The deal is structured as a joint venture, with the three parties pooling their resources to create a new platform that will focus on residential development. The platform is expected to leverage the strengths of the three parties and is a testament to the growing interest of international investors in India’s real estate sector and the potential it holds for long-term growth and profitability
The Bengaluru-based real estate company has recently acquired 62.5 acres of land in Indirapuram Extension, National Capital Region (NCR), for a sum of Rs 468 crore. This acquisition is a significant milestone for the company as it aims to expand its presence in the NCR region. Additionally, Prestige Group has also expanded its operations in Mumbai and Hyderabad by undertaking large format residential development projects.
The company has a strong presence in 13 key locations across India and has successfully developed over 180 million square feet of real estate in the residential, office, and retail segments. Currently, it has 56 projects underway, which can be developed over an area of 86 million square feet.
Moreover, the company has ambitious plans for the future, with 43 upcoming projects covering an area of 85 million square feet. As of September 2023, the company holds an impressive land bank of about 728 acres..
The firm has a diversified business model catering to various segments like residential, office, retail, hospitality and warehousing amongst others with operations in more than 12 major locations in India.
