New capex to drive Prestige Estates' rental portfolio scale up

The company is expected to be debt free by the end of June quarter

In a weak market, the Prestige Estates stock has been moving up over the past week, gaining about 11 per cent. After the completion of the first phase of the deal with Blackstone, its debt levels have come down to a tenth of previous levels at just under Rs 900 crore. Once the second phase is completed in the June quarter, it is expected to become net debt-free.

From over Rs 1,000 crore, the share of annual rentals accruing to Prestige Estates will come down to Rs 260 crore after the deal. The company has an ambitious plan to scale up