Prestige to buyout partners' stake in Bengaluru project for Rs 600 cr

Prestige said its subsidiary Valdel is proposing to purchase 100% of the securities held by Red Fort India Real Estate and Varidge Ventures in Exora Business Park

 

Private equity firms Red Fort India Real Estate Holdco and Varidge Ventures Ltd have exited a business park venture of Prestige Estate Projects Ltd in Bengaluru that is valued at Rs 600 crore.

Prestige, through its unit Valdel Xtent Outsourcing Solutions Pvt Ltd, bought 62.54 per cent stake held by the two private equity firms in Exora Business Park, which houses offices of JP Morgan, Juniper Networks, LinkedIn and Bosch. Red Fort and Varidge had invested Rs 290 crore in multiple tranches since 2007.

"We have, over the years, worked towards developing this project, deploying investment and expertise. The asset has matured and is completely leased out to marquee clients. This acquisition is a strategic decision and will result in increase in asset base and contribute to the company's annuity stream of income," said Irfan Razack, chairman and managing director of the Prestige Group in a statement.

The Exora Business Park earns a rental income of Rs 135 crore per annum with 2.13 million sq ft leased to firms such as JPMorgan and Juniper Networks. In addition, there is a residential stock of Rs 250 crore, said Venkat K Narayana, chief financial officer at Prestige Estates.