Realty firm Prestige Estates Projects Ltd has tied up with Mumbai-based DB Group for a mixed-development project comprising a large hotel and convention centre in Delhi at a total investment of around ₹2,000 crore.
The 3.5 million mixed-used project would be built over 7.70 acre at Aerocity in Delhi. It would house one of India’s largest hotels with around 932 keys, a convention facility of over 200,000 sqft, and an office space of around 650,000 sqft, both the companies said in a statement.
DB Group acquired the development rights of the land in 2009 from Delhi International Airport Limited (DIAL). The project is expected to be completed by 2022, according to the statement.
Both the companies would put in ₹355 crore in the 50:50 JV to develop the project. The rest of the development cost would be raised through bank loans, said Venkat Narayana, chief executive officer (CEO), Prestige Group over the phone.
“This strategic collaborative model will help us make an impactful entry into the NCR region. We will continue to invest and leverage our expertise to build a wide range of real estate developments across key locations in India," said Irfan Razack, chairman and managing director, Prestige Group in the statement.
Razack said the company has recently set foot into the National Capital Region market with a mid- income housing project. “We are now growing with this mixed-use development."
Property consultant JLL India was the transaction advisor to the deal.
“Once operational and stabilized, the hotel and the convention centre is expected to register net operating income (NOI) of ₹300 crore and the office space to register NOI of Rs. 170 crore," he said.