Prestige Group to acquire Exora biz park in Rs 1,000cr deal

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Prestige Estates Projects would be keen to invest upon Exora Business Park a joint venture with Red Fort Capital which yield them   63.5% stake from this deal which is worth of the Rs 1,000cr+.

The Deal would fetch 8.5%, outturn to the investment made exactly around Rs 1,600 crore which would be recovered from the assets by their rental values ,added with the minority shares which has also been acquired by Prestige Ltd, sums up to 100% stake by its internal accruals and short term loans, which marks this deal as an  massive transactions happened in real estate forum recent past specifically in silicon valley of India. This Bizz park holds few foreign investors with their office space spread through the floors of buildings fetching stable yields.

Prestige , which had emerged as Largest Indian Developer in term of residential market has finalized few financial commitments prior few days, with an exclusivity of 90 days granted to clinch the deal it is expected to make some announcements in the later in current week.

Sprawled across an area of 22 acres which contribute an area of 2.12 million sqft under lease earning a annual income of Rs 130 crore, from residing tenants like JP Morgan Chase, Juniper Networks and Xerox who have shared the space in this bizz park.

Along with this an separate deal has been signed between the Exora JV and Prestige Group , for Villa project in Whitefield.

Canada Pension Plan along with Shapoorji, Blackstone, Xander and Government of Singapore were among the few who had expressed their interest in looking at a potential acquisition through Red Fort’s stake earlier in previous season. This would have meant Prestige also exiting the park, prompting it to consider the buyback. Property consultants CBRE and JLL jointly ran the sale process for Red Fort.

Since there was no call made from Prestige end till the closing gate of exclusivity period, Red Fort was keen to invite expressions of interest (EoIs) from other investor acquirers. But a clear cut statement made by Prestige Group CMD Irfan Razack, “We are in advanced stage of closing the deal. Prestige is buying back stake as we have created these properties”, which closed the shutters of doubt eventually.

Red Fort Capital, an Real estate investor which sponsors funds to their partners Godrej, Parsvanth, Omkar and Lotus who are focused mainly on Indian Market featuring residential, commercial and hospitality sectors in all buzz cities across the country, which would be a greater financial deal resulting in a real estate acquisition in the recent past after the first quarter of year witnessed an acquisition of 24/7 business park by Blackstone from Milestone Capital.

India has witnessed large settlements acquired only open their the office space by the major investor across the globe, Blackstone Brookfield, Qatar Investment Authority and GIC of Singapore Blackstone, Brookfield, Qatar in past 18 months worth of $3 billion.