Prestige Estates to cut debts by selling assets
Real Estate

Prestige Estates to cut debts by selling assets

In a BSE filing, Prestige Estates announced that an agreement to sell commercial and retail property worth Rs 11,000 crore has been signed with Blackstone Group, an American equity major. As per the agreement, assets of 21 million sq ft, which include six completed office assets, two hotels, nine retail assets, four under-construction offices in Gujarat, Karnataka, Tamil Nadu, Kerala, and other places are to be sold.

According to Prestige Estates, the proposed transaction will be accomplished through a combination of business transfers, asset transfers, primary investments, secondary investments, demergers, slump sales, joint ventures, and other such modes as agreed between the parties. Prestige Estates undertook the deal in order to cut down on debts and generate liquidity. The company plans on building twice the amount of commercial property space that it is selling through the Blackstone deal.

Prestige Estates is set to sell a 100% stake in the six completed office assets and 85%-87% stakes in nine retail assets. Moreover, up to 50% of the rights and interests in four under-construction office assets are being sold by Prestige Estates. Prestige Assets will also sell up to 85% stakes in its hotel Oakwood Residencies and 100% stakes in Hotel Aloft.

A non-binding letter of intent was signed by Prestige Estates in October this year, with the Blackstone Group. Prestige Estates signed the term sheets with the Blackstone Group on Monday, and the deal is likely to be closed by next month, after all the necessary approvals from the Competition Commission of India (CCI).

Prestige Estates has 36 million sq ft of completed projects, 15 million sq ft of ongoing projects, and 22 million sq ft under planning in the office segment alone. The company boasts of 10 operational projects of around 7.5 million sq ft in retail. In the hospitality sector, the company has an inventory of 1,262 rooms which yield an annual revenue of Rs 327.5 crore annually.

The US-based Blackstone Group is known to have invested around $8 billion in real estate in India. So far, it has also sponsored two real estate investment trusts (RIETs), namely, Embassy Office Parks REIT and Mindspace Business Park REIT. With real estate assets worth $20 billion in the country, Blackstone is the largest office owner in the country. It boasts of joint ventures with a host of real estate companies such as Salarpuria Sattva, Panchshil Realty, K Raheja Corp and others.

In a BSE filing, Prestige Estates announced that an agreement to sell commercial and retail property worth Rs 11,000 crore has been signed with Blackstone Group, an American equity major. As per the agreement, assets of 21 million sq ft, which include six completed office assets, two hotels, nine retail assets, four under-construction offices in Gujarat, Karnataka, Tamil Nadu, Kerala, and other places are to be sold.According to Prestige Estates, the proposed transaction will be accomplished through a combination of business transfers, asset transfers, primary investments, secondary investments, demergers, slump sales, joint ventures, and other such modes as agreed between the parties. Prestige Estates undertook the deal in order to cut down on debts and generate liquidity. The company plans on building twice the amount of commercial property space that it is selling through the Blackstone deal.Prestige Estates is set to sell a 100% stake in the six completed office assets and 85%-87% stakes in nine retail assets. Moreover, up to 50% of the rights and interests in four under-construction office assets are being sold by Prestige Estates. Prestige Assets will also sell up to 85% stakes in its hotel Oakwood Residencies and 100% stakes in Hotel Aloft. A non-binding letter of intent was signed by Prestige Estates in October this year, with the Blackstone Group. Prestige Estates signed the term sheets with the Blackstone Group on Monday, and the deal is likely to be closed by next month, after all the necessary approvals from the Competition Commission of India (CCI). Prestige Estates has 36 million sq ft of completed projects, 15 million sq ft of ongoing projects, and 22 million sq ft under planning in the office segment alone. The company boasts of 10 operational projects of around 7.5 million sq ft in retail. In the hospitality sector, the company has an inventory of 1,262 rooms which yield an annual revenue of Rs 327.5 crore annually. The US-based Blackstone Group is known to have invested around $8 billion in real estate in India. So far, it has also sponsored two real estate investment trusts (RIETs), namely, Embassy Office Parks REIT and Mindspace Business Park REIT. With real estate assets worth $20 billion in the country, Blackstone is the largest office owner in the country. It boasts of joint ventures with a host of real estate companies such as Salarpuria Sattva, Panchshil Realty, K Raheja Corp and others.

Next Story
Infrastructure Transport

HMRTC to Extend Metro from Gurugram to Jhajjar

The Haryana Mass Rapid Transport Corporation (HMRTC) is progressing with plans to extend the Gurugram Metro from Basai to Bhadsa in Jhajjar, with the ridership survey expected to be completed by the end of January, according to HMRTC officials. In March, the authority had requested Railway India Technical and Engineering Services (RITES) to conduct a ridership survey, which will play a crucial role in finalising the project. The proposed route, covering 23.1 km from Basai to Bhadsa, will alleviate heavy traffic on this stretch. The ridership survey will determine whether the extension should p..

Next Story
Building Material

Siam Cement BigBloc Construction bags Tata Project’s order

SIAM Cement BigBloc Construction Technologies, a joint venture between Gujarat based BigBloc Construction and Thailand’s SCG International Corporation, has secured a work order from Tata Projects for supply and installation of AAC Panels for India’s first Semiconductor unit of Micron India in Sanand, Gujarat. The work order of approx. 2 lakh square feet is for supply and installation of 100 mm AAC panels for Micron India’s semiconductor factory at Sanand. The work order was finalized after several rounds of meetings, thorough due diligence, and factory visits, including review of mock-u..

Next Story
Infrastructure Urban

Zoomlion Releases World's Tallest Straight Boom Aerial Work Platform

Zoomlion Heavy Industry Science & Technology has released a series of groundbreaking aerial work platform (AWP) products, including the world's tallest straight boom aerial work platform, the ZT82J, with a height of 82.3 m. These innovative products further solidify Zoomlion's leadership in the AWP sector and underscore its commitment to global market development. The ZT82J marks Zoomlion's third instance of setting a world record in straight boom AWP following the 68-meter and 72-meter products. The 82.3-meter AWP boasts a platform amplitude of 34.1 meters, a maximum working load of 454 kilog..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000