Last week, Prestige Group said it was set to acquire a 66.66% stake from private equity partner Red Fort Capital and land owners in group company Prestige Projects Pvt. Ltd for Rs324 crore.
Last week, Prestige Group said it was set to acquire a 66.66% stake from private equity partner Red Fort Capital and land owners in group company Prestige Projects Pvt. Ltd for Rs324 crore.

Prestige buys CapitaLand’s stake in various shopping mall projects for Rs342 crore

The acquisition of CapitaLand Ltd's stake in various shopping mall projects will boost Prestige's annuity portfolio with an estimated incremental rental income of about Rs75 crore per year

Bengaluru: Real estate firm Prestige Group, through a subsidiary, has acquired Singapore-based CapitaLand Ltd’s stake in various shopping mall projects across India for around Rs342 crore.

The acquisition will boost Prestige’s annuity portfolio with an estimated incremental rental income of about Rs75 crore per year, the Bengaluru-based developer, which has a reasonably large shopping mall portfolio, said the company management on Monday.

The acquired portfolio includes five ready and operating retail malls in Bengaluru, Hyderabad, Mangaluru, Mysuru and Udaipur, and a mall management company. It also includes the 143-key, operating Oakwood serviced residences in Bengaluru, and a residential project with a potential developable area of 600,000 sq ft in Kochi.

Prestige said the acquisition fits well with its strategy of expanding its rental income.

“This accretive acquisition is a logical and necessary step in the expansion of our earnings and strengthening of our annuity portfolio," Irfan Razack, chairman and managing director of Prestige Group said.

“Our current estimated exit annualized rental income for 2017-18 is around Rs700 crore annualized. With this transaction, it will grow by another Rs75 crore per annum," said Venkat K. Narayana, the group’s chief executive.

Last week, Prestige Group said it was set to acquire a 66.66% stake from private equity partner Red Fort Capital and land owners in group company Prestige Projects Pvt. Ltd for Rs324 crore.

Prestige already owns 33.34% in Prestige Projects, which has a 180-acre land parcel near Sarjapur Road in Bengaluru, where it plans to develop an affordable housing project.

Close