US private equity player Blackstone might purchase Prestige Group's rental income assets for over $1.7 billion (Rs 12,745 crore).
If successful, the deal would be the largest real estate portfolio buyout in India, according to a report by The Economic Times.
Moneycontrol could not independently verify the story.
Blackstone declined to comment, while Prestige Group had not yet responded when contacted by The Economic Times.
"The term sheets have been signed and the deal is set to be concluded in the next few weeks," a source told the publication.
Prestige will use proceeds from the transaction to clear its debt and as equity capital for growth, the report said.
Blackstone's acquisition will include Prestige Group's nine operational malls, and under-construction properties in south Indian cities such as Bengaluru, Chennai and Mysore, the report added. The deal will also contain a part of the group’s hospitality assets.
Blackstone will gain 100 percent control of around 20 million square feet of the realtor's commercial space, the report said.
"The deal is somewhat similar to the DLF-GIC investment. Prestige is looking to deleverage its balance sheet with this transaction and prepare itself for the next phase of growth," a source told the paper.