Prestige Estates rises after concluding phase 1 deal with Blackstone

Prestige Estates Projects rose 2.13% to Rs 296.65 after the realty firm on Wednesday announced that it has completed phase 1 of proposed transaction with Blackstone Group.

The enterprise value forming part of phase 1 is approximately Rs 7467 crore out of the total enterprise value of approximately Rs 9160 crore as mentioned in the initial disclosure. Phase 1 of the transaction includes sale of twelve assets/undertakings comprising of completed retail, office, hotel assets. Phase 2 of the transaction is expected to get completed by the end of next quarter.

Prestige Estates said the overall transaction (Phase1&2) includes 100% stake sale in 6 completed office projects (include a hotel), 50% stake sale in four under construction projects and 85% stake sale in 9 Shopping malls.

 

Commenting on the transaction, Venkat K Narayana, CEO of Prestige Group said, This marks the beginning of the next chapter of our journey. This transaction is well aligned with our capital recycling strategy coupled with financial and strategic benefits. Financially, it provides us with the best opportunity to deleverage and further strengthen the balance sheet. Our consolidated net debt as on 31 December, 2020 was Rs 8464.5 crore and current transaction value itself is Rs 7467 crore. Strategically, this will aid in releasing significant management bandwidth to focus on new growth areas and increasing our For Immediate Press Release market share across key cities and business segments. Proceeds from the transaction will be used to repay debt, for growth and for construction of on-going projects.

Blackstone is an institutional investor in India with assets estimated to be $50 billion at market value across various sectors in the country.

Prestige Group is a property development company based in South India. The real estate developer's consolidated net profit tanked 59.4% to Rs 87.80 crore on 31.1% decline in net sales at Rs 1,847.60 crore in Q3 FY21 over Q3 FY20.

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