Bengaluru-based Prestige Group has completed two strategic acquisitions of Prestige (BKC) Realtors Private Ltd and Turf Estate Joint Venture LLP from DB Group for Rs 1,176 crore, the company said in a regulatory filing.
Prestige Group said on May 29 that it had entered into agreements to increase its stake from 50 percent to 100 percent by purchasing the remaining securities of Prestige (BKC) Realtors Private Limited from DB Group and its subsidiaries for Rs 978.70 crore. This was done through its wholly-owned subsidiary, Prestige Falcon Realty Ventures Pvt Ltd.
For the second acquisition, Prestige Estates announced it has also entered into agreements to acquire the remaining 50 percent partnership interest in Turf Estate Joint Venture LLP from DB Realty Ltd for a consideration of Rs 197.79 crore.
The marquee projects
Prestige (BKC) Realtors is developing a project with a development potential of 2.79 million square feet (msf) of Grade A office space in Mumbai's Bandra-Kurla Complex.
Turf Estate Joint Venture LLP is developing a project, called The Prestige, with a potential of 2.9 msf of Grade A office space in Mumbai's Mahalakshmi area.
Both the projects are under construction and are expected to be completed within the next four years, Venkat K Narayana, Group CEO at Prestige Estates Projects Ltd said.
"These acquisitions help us consolidate our holdings in these marquee assets at key locations. We are confident that the increased stake will substantially enhance the value we bring to our annuity rental portfolio," he added.
Currently, the Prestige Group is planning to commence construction of 18 million square feet (msf) of office space, with an annual rental income potential of Rs 800 crore-Rs 1,200 crore in Bengaluru within March 2024.
The company is also looking at a foray into the Real Estate Investment Trust (REIT) market. An announcement is expected within 3-4 years.
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