The Bangalore-based real estate company Prestige Estate Projects is planning to divest some of its business stakes in commercial and retail verticals. The funds raised from stake sale will be invested in future projects, expansion of its rent-yielding business and reduction of its overall debt.
The company currently has multiple realty businesses and just the last year it completed a thorough restructuring of its business into commercial, retail, hospitality and residential verticals. Each of these verticals is likely to see an induction of a financial investor over the next few quarters.
The company is already in talks with some top private-equity players for stake sale. According to the people in the know, the deal when it happens, could be one of the biggest in the real estate sector in the recent past, and on lines similar to DLF promoters’ 40% stake sale in their rental arm.
DLF is in the process to sell the stake to Singapore's sovereign wealth fund GIC for about Rs 13,000 cr. Prestige Estate Projects has over 24 mln sqft of leased, under-construction and upcoming office and retail properties, of which 4.36 mln sqft of office and retail properties are under construction.
Prestige Estate Projects’ income from retail and commercial properties is expected to reach Rs 1,700 cr in the next three-four years from Rs 750 cr at present, the company had said last year. The company had also stated then that it expected the share of its hospitality business to increase from Rs 121 cr to Rs 333 cr during the same period.
Currently, the company has 65 ongoing residential projects totaling around 70.45 mln sqft, while it has 65 ongoing commercial projects comprising around 56.94 mln sqft.