The acquisition of Singapore-based CapitaLand Ltd’s stake in various shopping mall projects will boost Prestige’s annuity portfolio with an estimated incremental rental income of about Rs750 million per year
Prestige’s plan aims to take a 66.66% stake from private equity partner Red Fort Capital and land owners in group company Prestige Projects Pvt. Ltd for Rs3.24 billion.
The Bengaluru-based developer, which has a reasonably large shopping mall portfolio, has 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 potentially developable area of 600,000 sq ft in Kochi.
“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.
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.