The Bengaluru-based real estate developer has signed a non-binding letter of intent with private equity major the Blackstone Group to sell a few of its commercial offices, retail and hotel properties.
Prestige Estates Projects has signed a non-binding letter of intent with certain entities, acting on behalf of funds controlled, managed and/or advised by the Blackstone Group, for the sale of the company's direct and indirect interest in certain commercial offices, retail and hotel properties, mall management and identified maintenance businesses. Blackstone is the world's leading investment firm.Pursuant to the terms of the letter, Prestige Estates Projects has provided Blackstone, exclusivity in relation to the transactions contemplated in the letter. The transactions will be consummated through a combination of primary investments, secondary transactions (share purchase/business transfers), partnerships/joint ventures or such other modes, as may be mutually agreed between the parties.
The consummation of the transactions will be subject to completion of due diligence, finalization of the transaction structure, negotiation and execution of the definitive documents, satisfaction of the conditions precedent in such definitive documents and receipt of approvals, if any required. The announcement was made on Saturday, 17 October 2020.
Prestige Estates Projects' consolidated net profit slumped 83.9% to Rs 20 crore on a 17.2% decline in net sales to Rs 1,273.70 crore in Q1 June 2020 over Q1 June 2019.
Shares of Prestige Estates Projects were down 0.78% to Rs 258.45 on BSE. The scrip has soared 93.08% from its 52-week low of Rs 133.85 hit on 19 May 2020.
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