Prestige Estates continues to rise for a second day after the company's arm, Exora Business Park begins exploratory talks to divest significant minority stake to GIC. In an interview with CNBC-TV18, Irfan Razack, CMD of Prestige Estates spoke about the latest happenings in his company and sector.
We have signed a term sheet with them just now and the idea is to dilute a certain minority stake into the office asset which own a substantial part of our office asset, he said.
Rental market in Bangalore is doing pretty good. The vacancy levels are near zero and the rentals have moved up northwards and that is a good sign, he added.
Going forward, I see more and more pressure on the rental market because not too much is coming into the market. Supply is less and the demand is steady, said Razack.
Currently this is the transaction which we were working on and which we will be focussing on for the next 60-90 days and once that is done, we always are looking at various methods to see that we get more and more capital into the company, reduce debt and also more than that increase the overall bandwidth in terms of getting more rentals space, he further mentioned.
The debt levels in the company are fairly stable and with this transaction part of that debt will also go up to our PE partner, he said.
The idea is to take this money and use it as a dual purpose, Razack further added.
For full interview, watch accompanying video…
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