Prestige Group and Blackstone finalize deal for sale of commercial assets.
Leading global alternative investment management company; Blackstone Group Inc. and one of India’s prominent realty firm; Prestige Group finalize the deal worth $1.5 billion, where Prestige group sells commercial assets of 21 million square feet after they received the nod from The Competition Commission of India (CCI). This deal is one of the largest realty deals in India and includes 5 completed office assets with 7 million sq.ft. of leasable area, 4 under construction offices projects with 4 million sq.ft of leasable area, 9 retail malls and 2 hotels for which the exact area is yet to be disclosed.
The talks of this deal has been lingering around for quite a few months and in October, a non-binding letter of intent was signed by Prestige Group with Blackstone group of entities. This decision by Prestige Group comes with the intent of clearing a part of it’s debt while also investing a part of the funds towards it’s upcoming real estate projects. Chairman and Managing director of Prestige Group; Irfan Razack mentioned that the deal will allow the company attain capital growth.
Other than easing debt on the South-Indian realty firm, the vision for the future of Prestige Group in the words of Irfan Razack are “ the existing assets will be replaced by brand new ones. Around ₹ 6,000 crore of debt will be retired after this deal and we will be left with ₹ 4,000 crore surplus for new projects”.
U.S.- based Blackstone Group Inc. has already made an investment worth $ 8 million in real estate in India by sponsoring two Real Estate Investment Trusts (REITs) launched and listed as of now in India namely; Mindspace Business Park REIT and Embassy Office Parks REIT.