Prestige Group Secures ₹2,001 Crore for Expansion

Fundraising Announcement

Prestige Estates Projects Ltd, a leading realty firm, has successfully raised Rs 2,001 crore from Abu Dhabi Investment Authority (ADIA) and Kotak AIF to fuel its expansion plans. The company aims to utilize these funds for the development of housing projects across four major cities.

Investment Details

In a regulatory filing, Prestige Group revealed that it has entered into a significant agreement with ADIA and Kotak AIF for the infusion of Rs 2,001 crore (approximately USD 240 million) to capitalize on growth opportunities in the residential sector. The funds are earmarked for projects with an estimated revenue potential of Rs 18,000 crore.

Leadership Perspective

Irfan Razack, Chairman & Managing Director of Prestige Group, expressed confidence in the institutional investors’ trust in the company’s execution and corporate governance. He emphasized the shared commitment to delivering excellence in real estate development nationwide.

Project Development

According to Venkat K Narayana, CEO of Prestige Group, the raised funds will be utilized in quasi-equity form for developing four housing projects in Delhi-NCR, Mumbai, Goa, and Bengaluru. ADIA and Kotak AIF will hold stakes in the special purpose vehicles (SPVs) created for these projects.

Growth Strategy

Prestige Group views this collaboration as a significant milestone in its growth trajectory, aiming for strong and organic expansion. The deal underscores the company’s vision to maintain its leadership position in the industry while catalyzing the development of early-stage residential projects.

Market Impact

Venkat highlighted that the funds will accelerate growth by fueling the development of greenfield residential projects across multiple cities, contributing significantly to the company’s top line. With a legacy spanning nearly four decades and diversified business segments, Prestige Group aims to leverage this investment to meet the increasing demand in the real estate sector.

Company Profile

Prestige Group boasts a diversified business model covering residential, office, retail, hospitality, property management, and warehouses, operating in over 12 major locations in India. The company has completed 300 projects across a developable area of 188 million square feet, solidifying its position as a key player in the real estate development sector.