Prestige Group inks Deal with Kotak and ADIA worth Rs. 2,001 Cr

In a recent development, Prestige Group inks a whopping deal with Kotak AIF and ADIA (Abu Dhabi Investment Authority). The Bangalore-based developer raised Rs. 2,001 crore via a deal to develop four residential projects. Each of them is expected to be a landmark project in Delhi, Mumbai, Bangalore, and Goa.

With this venture, Abu Dhabi Investment Authority foray into the Indian residential property market. Earlier, the company operated in the commercial sphere only.

Venkat K Narayana, Group Chief Executive, Prestige Group said, “The kind of opportunities coming up in the residential sector is huge. The partnership with ADIA-Kotak is long-term. The four projects are large, around 13.5 million sq.ft. together. Given the increasing demand and consolidation in the sector, this deal will help in accelerating growth and expansion.”

The deal is fragmented in a 60:40 ratio where Kotak-ADIA will invest Rs.2, 001 Cr. This investment will be in the form of quasi debt and the remaining financial stake will be contributed by Prestige Group.

Narayana further said land acquisition for all four projects is complete at a combined Gross Development Value (GDV) of more than Rs.18, 000 crore.

Irfan Razack, chairman and managing director, Prestige Group, said, “This marquee deal does not only underscores the confidence of institutional investors in Prestige Group's execution and corporate governance but also reflects our shared commitment to delivering excellence in real estate development pan-India.”

For the upcoming project, the company acquired 6.25 acres of land in Indirapuram extension, Ghaziabad. The land is valued at Rs. 468 crore and it is a step toward the expansion of business horizon in the country. With this, the company emphasizes on luxury housing segment. Earlier in 2022, Kotak Advisors Ltd acquired an anchor investment of Rs. $500 million from a sister company of ADIA for its $ 1 billion real estate fund. It was aimed at conquering the high demand for urban residential accommodation.

Prestige Group has successfully delivered luxury residential projects in Bangalore and now aims to enhance its presence across India.