Prestige Estates Projects has completed phase 1 of proposed transaction with Blackstone Group. The enterprise value forming part of phase 1 is approximately Rs 74,670 million out of the total enterprise value of approximately Rs 91,600 million, the company said in a media release.
The overall transaction (Phase1&2) includes 100% stake sale in six completed office projects (include a hotel), 50% stake sale in four under construction projects and 85% stake sale in nine shopping malls.
Phase 1 of the transaction includes sale of twelve assets/undertakings comprising of completed retail, office and hotel assets. Phase 2 of the transaction is expected to get completed by the end of next quarter.
“We have a strong development pipeline of about 43 million sq ft office and retail portfolio in the key locations across the cities and in the next 4-5 years it is projected to yield rentals of over Rs 30,000 million per annum – growth close to 10x of our post deal rental portfolio of about Rs 3,000 million,” said Irfan Razack, chairman, Prestige Group.
“Our consolidated net debt as on December 31, 2020 was Rs 84,645 million and current transaction value itself is Rs 74,670 million. Strategically, this will aid in releasing significant management bandwidth to focus on new growth areas and increasing our market share across key cities and business segments. Proceeds from the transaction will be used to repay debt, for growth and for construction of on-going projects,” said Venkat K Narayana, CEO, Prestige Group.
