Prestige Estates Projects’ subsidiary signs agreement to develop IT parks, shares up by 2%

The real-estate developer needs to examine technical and legal aspects before finalising the agreement, said the developer. Representative image

Prestige Estates Projects shares gained on July 6 after the company’s subsidiary entered into an agreement to develop IT parks. The real-estate builder’s shares were up 2.24 percent at Rs 590 at 13.09 pm on the National Stock Exchange. The shares have gained 26 percent since January 1.

Prestige Estates Projects’ subsidiary, Prestige Exora Business Parks entered into a joint venture agreement with WS Industries to develop IT and IT-enabled parks in Porur, Chennai, said the developer in an exchange filing dated July 5. WS Industries will implement the project through its subsidiary, WS Insulators.

The real-estate developer needs to examine technical and legal aspects before finalising the agreement, said the developer.

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Prestige Estates Projects’ subsidiary, Prestige Falcon Reality entered into an agreement to acquire a 50 percent stake in Prestige BKC Realtors on May 29.

Motilal Oswal has a buy call on the stock with a target price of Rs 675. “While the recent stake increase in key office assets in Mumbai has resulted in an increase in net debt, we believe the enhanced cash flows will support the company in meeting its business development spending and commercial capex requirements without putting strain on the balance sheet,” said Motilal Oswal in a report dated June 1.

The real-estate company’s total revenue increased 32 percent year-on-year (YoY) to Rs 8,772 crore in FY23. Prestige Estates Project’s net profit fell 18 percent YoY to Rs 941 crore in the same period. EBITDA ­margins for the bank increased 256 basis points YoY in FY23.

Prestige Estates Project is engaged in developing residential and commercial real estate. Its operations are spread across South India, Pune, Goa and Ahmedabad.

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