Prestige Group is planning to build a new mid-income housing portfolio in India's largest property markets National Capital Region (NCR) and Mumbai, according to a report in Mint.
The company is in talks for a central project development in Mumbai and has signed a 25 acre land deal in Noida for mid-income housing. Other new projects in Pune and Hyderabad are also being considered.
“We see huge potential in the office development business. We have grown our business to a certain size and the idea was to access fresh capital by unlocking some value which can be re-invested in building existing assets and to expand. We are looking at several opportunities for greenfield developments in office and residential across geographies,” Chairman and Managing Director Irfan Razack told the paper.
Prestige has signed a Rs 2,500 crore residential joint venture agreement with HDFC Capital Advisors Ltd. It also signed a term sheet with marquee investor GIC Pte Ltd to sell a 40 percent stake in a portfolio of office projects for around Rs 2,000 crore in two of the largest fund-raising deals of 2018. The deal with GIC will take another two months or so to conclude, the report said.
The Prestige-GIC deal money will be mainly used to build its existing assets as well as expand its overall portfolio unlike GIC-DLF deal, the report said.
“The advantage is that Prestige doesn’t have huge debt like DLF and so it can actually take that money out and use it to grow the company in whatever way it feels. To have access to equity capital without the stress of debt repayment gives the developer a big advantage,” said a person familiar with the company’s plans told the paper on condition of anonymity.