Prestige, Brigade group partner to build mall, hotel project in Bengaluru

Realty firm Prestige Estates Projects Ltd has partnered with Brigade group to jointly develop a commercial project, comprising a shopping mall and a hotel, in Bengaluru at an estimated construction cost of around Rs 500 crore.

The two leading developers have jointly taken a 7.5-acre land on a 99-year lease located at Old Madras Road (OMR) in Bengaluru.

"Prestige and Brigade group have joined together to develop one million sq ft area in this project. It will have a shopping mall and a small hotel of around 125 keys in this project," Prestige group Chairman and Managing Director Irfan Razack told PTI.

He said Prestige group will have 70 per cent shareholding in the project while Brigade will have 30 per cent stake.

On Tuesday, Prestige Estates informed exchanges that it has entered into a Limited Liability Partnership agreement (LLP) with Mysore Projects Pvt Ltd, a wholly-owned subsidiary of Brigade Enterprises Ltd in Prestige OMR Ventures LLP.

Prestige Estates Projects and Mysore Projects Pvt Limited are the partners in Prestige OMR Ventures LLP in the ratio of 70 per cent and 30 per cent, respectively.

Brigade also informed this development separately to exchanges.

Razack said the construction work will start after taking all the necessary approvals.

Both the partners will make equity investments as well as raise debt to develop this premium commercial project, he said.

Razack said the Prestige group remains bullish on the long-term growth prospect of India's commercial real estate sector despite disruption caused by the COVID-19 pandemic.

The group would continue to build commercial portfolio and also monetise it at opportune time, he added.

Last week, Prestige Estates Projects announced that it has agreed to sell certain office, retail and hotel properties to global investment firm Blackstone -- in a big ticket real estate deal estimated at around Rs 12,000 crore.

Prestige group did not disclose the deal size, but sources had said that the Bengaluru-based firm has signed term sheets with Blackstone to sell commercial properties for an enterprise value of around Rs 12,000 crore.

The deal is expected to be closed by end of the next month after all the necessary approvals including that of the Competition Commission of India (CCI), sources said.

According to sources, the total office, retail and hotel assets to be monetised through this deal could be 15-20 million sq ft both completed and under construction.

Two hotels with 336 keys are also part of the deal.

Prestige group will utilise the fund raised through this monetisation to partly retire its debt and future expansion.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel