Following the nod from Competition Commission of India in December last year, Bengaluru-based real estate developer Prestige Group has sold assets worth Rs 7,467 crore to investment firm Blackstone in the first phase of Rs 9,100-crore transaction.
The phase one transaction included sale of 12 assets/ undertakings comprising completed retail, office and hotel assets. The rest of the transaction is expected to be completed by the end of the next quarter.
As part of the first phase, the company sold 100 per cent stake in Cessna Business Park and Aloft Hotel, Trade Tower in Bengaluru and Prestige Fintech in Gift city. It also divested 85 per cent of its rights and interests in retail properties which include Forum Shantiniketan, Forum Koramangala, Forum Neighbourhood and Oakwood Residences in Bengaluru, Forum Centre City in Mysuru, Forum Fiza in Mangaluru, Forum Celebration in Udaipur and Forum Sujana in Hyderabad.
Prestige Group also transferred 100 per cent rights and interests in Prestige Amusements Private Limited Company, which runs maintenance and management business of the said retail assets.
"This transaction will also aid us in building long-term strategic partnership with Blackstone Group and leverage the respective strengths of both to create value for the stakeholders," Prestige Group Chairman Irfan Razack said.
"We have a strong development pipeline of about 43 million square feet office and retail portfolio in the key locations across the cities and in the next 4-5 years it is projected to yield rentals of over INR 30,000 million per annum - growth close to 10x of our post deal rental portfolio of about INR 3,000 mn," Razack added.
Through the transaction, the company's debt has reduced by Rs 4,594 crore, Prestige Group said in a statement to the stock exchange.