Prestige Estates sells assets worth Rs 7,467 cr to Blackstone Group

Bengaluru (Karnataka) [India], March 11 (ANI): Prestige Estates Projects has completed phase one of the proposed transaction with Blackstone Group with enterprise value forming part of phase one at Rs 7,467 crore.
The total enterprise value including phase two is Rs 9,160 crore as mentioned in the initial disclosure.
Prestige said the overall transaction includes a 100 per cent stake sale in six completed office projects including a hotel and a 50 per cent stake sale in four under-construction projects. It will also include 85 per cent stake sale in nine shopping malls.
Phase one of the transaction includes the sale of 12 assets comprising of completed retail, office and hotel assets. Phase two of the transaction is expected to complete by the end of next quarter.
"We believe that this transaction will further strengthen our foundation and help us in gearing up for the next level of growth," said Irfan Razack, Chairman of the Prestige Group.
"This transaction will also aid us in building a long-term strategic partnership with Blackstone Group and leverage the respective strengths of both to create value for stakeholders."
Razack said that with an unparalleled execution track record, balanced portfolio across segments and geographies, and deep management expertise, the company is uniquely positioned to capture opportunities for growth and gain from accelerated consolidation taking place in real estate industry.
"We have a strong development pipeline of about 43 million square feet office and retail portfolio in key locations across cities. In the next four to five years, it is projected to yield rentals of over Rs 3,000 crore per annum, a growth close to 10x of our post-deal rental portfolio of about Rs 300 crore," he said in a statement.
The Prestige Group has a diversified business model across residential, office, retail and hospitality segments with operations at 12 key locations in India. It has completed 249 award projects with a developable area of 135 million square feet and has 47 ongoing projects with a total developable area of 59 million square feet.
The company has been graded DA1 by Crisil and also enjoys a credit rating of ICRA A-plus. (ANI)