aquire acres
Prestige Group creates investment funds of $500 million

Prestige Group creates investment funds of $500 million

Prestige Group creates investment funds of $500 million

Prestige Group plans to create and manage two real estate-focused alternative investment funds worth $500 million to buy land to boost its residential business, a person familiar with the matter said.

The proposed funds will target institutional investors and high net worth individuals (HNIs). They will also consider acquisitions of distressed housing projects and those that have gone to the National Company Law Tribunal (NCLT).

In the proposed IDA funds, Prestige Estates will be the sponsor, while institutional investors may be co-sponsors.

The person quoted above said: “The idea of ​​floating the fund is not to increase debt but to grow the company at the same time.” “There will be two funds because there is a lot of interest from institutional funds and high net worth individuals.”

Prestige Estates could not be reached for comment.

The proposed funds will be invested in projects in India’s six largest markets: Mumbai Metropolitan Region (MMR), Pune, Bengaluru, Chennai, National Capital Region (NCR), and Ahmedabad.

“The company is looking to build an inter-city land bank,” the source quoted above said.

Prestige Estates has reported residential sales of around Rs 7.3 billion for the third quarter of the current fiscal year and expects the year to end at Rs 10 billion, despite the underlying challenges posed by the pandemic.

The new sales were supported by a good response to its newly launched projects.

Prestige has approximately 83 million square feet of residential projects under construction or in the pipeline. Its net debt was Rs 4,171.5 crore with an average borrowing cost of 9.38%.

Also Read – 5 Crucial Clauses You Must Include In The Home Buying Process

Spread the love

Follow us

Don't be shy, get in touch. We love meeting interesting people and making new friends.