After the Blackstone deal, Prestige Estates’ net debt is reduced to 997.5 crore from
Prestige Estates Projects Limited completed phase 1 of the proposed transaction with Blackstone Group, which included the sale of 100% interest in six completed office projects (including one hotel), sale of 50% interest in four projects in construction and sale of 85% stake. in nine shopping centers.
In total, Phase 1 transactions included the sale of 12 assets / businesses comprising completed retail, office and hotel assets. Phase 2 of the transaction is expected to be completed by the end of next quarter.
In a regulatory filing with the stock exchanges, the company said the Phase 1 transactions involved 7,467 crore out of the company’s total value of around ₹ 9,160 crore.
With the Phase I sale underway, the company’s net debt is reduced to 997.5 crore. The consolidated net debt of the company as of December 31, 2020 was 8,464.5 crore of
Commenting on the transaction, Irfan Razack, President of Prestige Group, said: “We believe this transaction will further strengthen our foundations and help us prepare for the next level of growth. This transaction will also help us establish a long-term strategic partnership with Blackstone Group and leverage the respective strengths of both to create value for stakeholders. With our unprecedented execution track record, our balanced portfolio across segments and geographies, and our deep management expertise, we are uniquely positioned to seize growth opportunities and take advantage of the accelerated consolidation that is unfolding. takes place in the real estate sector. We have a strong development pipeline of approximately 43 million square feet of office and retail portfolio in key city locations and over the next 4-5 years is expected to generate rents of over 3 000 crore per year – nearly 10 times growth of our rental portfolio after agreement of around 300 crore.
Venkat K Narayana, CEO of Prestige Group, said: “This marks the start of the next chapter of our journey. This transaction is well aligned with our strategy of recycling capital coupled with financial and strategic benefits. Financially, it offers us the best opportunity to reduce our debt and further strengthen our balance sheet. Our consolidated net debt as of December 31, 2020 was 8,464.5 crore and the current transaction value itself is ₹ 7,467 crore. Strategically, this will help free up significant management bandwidth to focus on new areas of growth and increase our market share in cities and key business segments. The proceeds of the transaction will be used to repay debt, for growth and for the construction of ongoing projects. “