Prestige completes first phase of Rs 9,160-cr deal with Blackstone

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March 11, 2021 1:30 AM

“Enterprise value forming part of phase 1 is approximate Rs 7,467 crore out of the total enterprise value of approximately Rs 9,160 crore as mentioned in the initial disclosure,” Prestige Estates Projects said.

The deal includes a 100% stake sale in six completed office projects (including a hotel) and a 50% stake sale in four under construction projects as well as an 85% stake sale in nine shopping malls.The deal includes a 100% stake sale in six completed office projects (including a hotel) and a 50% stake sale in four under construction projects as well as an 85% stake sale in nine shopping malls.

Bengaluru-based Prestige on Wednesday said it has concluded the first phase of the Rs 9,160-crore deal with Blackstone under which the real estate developer is selling a large portfolio of office, retail and hotel properties to the global investment firm. Both the companies had signed definitive agreements in November last year.

“Enterprise value forming part of phase 1 is approximate Rs 7,467 crore out of the total enterprise value of approximately Rs 9,160 crore as mentioned in the initial disclosure,” Prestige Estates Projects said.

Phase 1 of the transaction includes the sale of twelve assets comprising completed retail, office and hotel properties. However, Phase 2 is expected to be completed by end of April-June 2021, it added.

The deal includes a 100% stake sale in six completed office projects (including a hotel) and a 50% stake sale in four under construction projects as well as an 85% stake sale in nine shopping malls.

Prestige Group chairman, Irfan Razack said, “We have a strong development pipeline of about 43 million sq ft office and retail portfolio in key locations across cities and the next 4-5 years it is projected to yield rentals of over Rs 3,000 crore per annum – growth close to 10x of our post-deal rental portfolio of about Rs 300 crore”.

Prestige Group CEO Venkat K Narayana said, “Financially, it provides us with the best opportunity to deleverage and further strengthen the balance sheet. Our consolidated net debt as of December 31, 2020, was Rs 8,464.5 crore and the current transaction value itself is Rs 7,467 crore. Proceeds from the transaction will be used to repay debt, for growth and construction of on-going projects.”

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