Business

December 27, 2017

Prestige Group buys 66.6% stake from Red Fort Capital


PrestigeGroup-RedFortCapital

Prestige Group has paid Rs 324 crore to buy back a 66.66 percent stake in group company Prestige Projects Pvt. Ltd from real estate-focused private equity firm Red Fort Capital through a wholly owned special purpose vehicle.

In 2015, following a split between founders Subhash Bedi and Parry Singh, the assets and most of the members moved to Rising Straits Capital. Red Fort had also backed other commercial and residential projects of the developer and had later exited.

According to a statement issued by the Prestige Group, “The developer intends to develop a large-scale affordable and mid-income housing project comprising apartments, villas and plots. The total developable area of the project is estimated to be around 7.5 million sq ft. Prestige estimates it has revenue potential of over Rs 3,500 crore.”

Irfan Razack, Chairman and Managing Director, Prestige Group, said, “Our long-term strategy to create value is to diversify our revenue base, expand earnings and strengthens our development pipeline. This transaction will help us enter into the affordable housing segment in a big way.”

Venkat K Narayana, Chief Executive Officer, Prestige Group said the transaction fits well with the company’s strategy of entering the affordable housing segment, which has huge demand and potential for growth.

Prestige Group has claimed to complete 210 projects with developable area of 80 mn square feet and has 53 ongoing projects across segments. The company’s consolidated revenue for financial year 2016-17 was Rs 4,862 crore.

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