Prestige group agrees to promote sure workplace, retail property & 2 accommodations to Blackstone for Rs 12K crore

NEW DELHI: Realty agency Prestige Estates Projects Ltd on Saturday stated it has agreed to promote sure workplace, retail and lodge properties to world funding agency Blackstone — in a giant ticket actual property deal estimated at round Rs 12,000 crore.

Prestige group didn’t disclose the deal measurement, however sources stated that the Bengaluru-based agency has signed time period sheets with Blackstone to promote business properties for an enterprise worth of round Rs 12,000 crore.

The deal is predicted to be closed by finish of the following month in any case the required approvals together with that of the Competition Commission of India (CCI), sources stated.

In a regulatory submitting, Prestige on Saturday knowledgeable that it has “signed a non-binding letter of intent” with Blackstone for the sale of its curiosity in “sure business workplaces, retail and lodge properties, mall administration and recognized upkeep companies.”

Prestige group has supplied to Blackstone, exclusivity in relation to the transactions, it added.

The closure of the deal will likely be topic to completion of due diligence, finalization of the transaction construction, negotiation and execution of the definitive paperwork, satisfaction of the situations precedent in such definitive paperwork and receipt of approvals, if any required.

According to sources, the full workplace, retail and lodge property to be monetised by way of this deal might be 15-20 million sq ft each accomplished and beneath development. Two accommodations with 336 keys are additionally a part of the deal.

Blackstone and Prestige group spokesperson declined to remark.

Prestige group will utilise the fund raised by way of this monetisation to partially retire its debt and future growth.

US-based Blackstone has invested round USD 8 billion in Indian actual property. It has sponsored two REIT (Real Estate Investment Trust) launched and listed to date in India — Embassy Office Parks REIT and Mindspace Business Park REIT).

India’s workplace market has been performing nicely since previous couple of years regardless of the general slowdown in the true property sector.

The internet workplace house leasing stood at report 45-50 million sq ft in 2019 calendar 12 months that additionally noticed the nation’s first REIT being launched and listed on inventory alternate by Embassy Office Parks.

In August this 12 months, Mindspace Business Parks launched and listed the nation’s second REIT, whereas just lately Brookfield has filed doc with SEBI for the third REIT.

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