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Prestige group raises ₹2,001 cr from ADIA, Kotak AIF to build housing projects across four cities
The funds will be used to develop projects across the cities of Bengaluru, Mumbai, Goa, and NCR with an estimated revenue potential of ₹18,000 crore
Bengaluru-based Prestige Group has raised ₹2,001 crore from the Abu Dhabi Investment Authority (ADIA) and Kotak AIF to develop greenfield residential projects across four cities - Bengaluru, Mumbai, Goa, and NCR - with a combined Gross Development Value (GDV) of over ₹18,000 crore.
In a regulatory filing on April 1, Prestige Group said the company, through its subsidiaries, has "entered into a landmark deal with ADIA and Kotak AIF for ₹2,001 crore (around $240 million) to capitalize on growth opportunities in the residential sector".
The collaboration with ADIA and Kotak AIF represents a considered move towards adopting strong and organic growth for Prestige Group. The deal, with its substantial size, upholds the company's vision to sustain its leadership position in the industry, the company said.
It is aimed at catalyzing the development of early-stage residential projects, ensuring the company's commitment to prudent expansion and diversified growth, it said.
"We are pleased to partner with ADIA and Kotak AIF, globally renowned and sovereign investors with an established track record of promoting sustainable growth across diverse industries. This marquee deal 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,” said Irfan Razack, chairman and managing director of Prestige Group.
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Venkat K Narayana, Group CEO of Prestige Group, said "Given the increasing demand and consolidation in the sector, this deal will help in accelerating growth and expansion. These funds will fuel the development of greenfield residential projects across the cities of Bengaluru, Mumbai, Goa, and NCR with a combined Gross Development Value (GDV) of over ₹18,000 crore, contributing significantly to the top line.”
Prestige Group has so far completed 300 projects spanning a developable area of 188 mn sq ft. The company has been graded CRISIL DA1+ by CRISIL and enjoys a credit rating of ICRA A+.
