Pres­tige Es­tates to en­ter NCR with 2 projects

HT Estates - - FRONT PAGE - Mad­hurima Nandy mad­

BEN­GALURU: South In­dia-fo­cused developer Pres­tige Es­tates Projects Ltd is set to en­ter the na­tional cap­i­tal re­gion with two projects this fi­nan­cial year, said Venkat K. Narayana, the chief ex­ec­u­tive of the real es­tate firm.

Pres­tige is plan­ning to launch amid­dle-in­come­hous­ing­pro­ject in Noida spread across 22-acres and a com­mer­cial of­fice project in Gu­ru­gram by the end of March, said Narayana, adding that the NCR projects will be through joint de­vel­op­ment agree­ments.

“There can’t be a bet­ter time for us to di­ver­sify our port­fo­lio and en­ter new mar­kets such as the NCR. Our strat­egy is long term,” he said. “We are also ac­tively look­ing at growth through ac­qui­si­tions, both in the of­fice and res­i­den­tial space.” Pres­tige Es­tates is also ac­tively ex­plor­ing the Mum­bai realty mar­ket.

Pres­tige will be among a host of large de­vel­op­ers to have en­tered NCR. These in­clude Go­drej Prop­er­ties Ltd, Tata Hous­ing De­vel­op­ment Co., Mahin­dra Lifes­pace De­vel­op­ers Ltd and Shapoorji Pal­lonji Real Es­tate.

“There are many big de­vel­op­ers from the South who are look­ing to en­ter NCR be­cause land own­ers and de­vel­op­ers here are sit­ting on large land parcels, but are un­able to de­velop them. This has thrown up many op­por­tu­ni­ties,” said San­thosh Ku­mar, vice-chair­man, Anarock Prop­erty Con­sul­tants.

“De­spite the pain NCR has gone through, the of­fice mar­ket is still do­ing well and there is high de­mand for hous­ing, which is what fi­nan­cially sound de­vel­op­ers like Pres­tige would cash in on,” he added.

The com­pany is, how­ever, yet to com­plete the ₹ 2,000 crore of­fice prop­erty deal with Sin­ga­pore’s sov­er­eign fund GIC Pte Ltd, even af­ter seven months of sign­ing a term sheet to sell a 40% stake of its of­fice projects port­fol i o. The trans­ac­tion was ex­pected to close within 60-90 days, the com­pa­ny­had­saidthen. Narayana said the talks are still on with GIC, but did not di­vulge any fur­ther de­tail.

Pres­tige is pre­pared to ex­plore fund-rais­ing op­tions in case of a de­lay in the GIC deal, an­a­lysts cited Pres­tige’s man­age­ment as say­ing in the June quar­ter earn­ings call. “The deal for of­fice space ex­pan­sion with GIC Sin­ga­pore is still at the due dili­gence/ ne­go­ti­a­tion stage and clar­ity on the same may emerge in an­other 3-4 months,” said Ad­hidev Chat­topad­hyay, an­a­lyst at ICICI Se­cu­ri­ties Ltd.

Ac­cord­ing to Narayana, real es­tate in­vest­ment trusts (REIT) are a good, tax-ef­fi­cient route to tap the pub­lic mar­kets given the com­pany’s diver­si­fied as­sets, sta­ble cash flows and the abil­ity to scale.

On the fund-rais­ing front, Pres­tige had ear­lier this year an­nounced a Rs 2,500 crore res­i­den­tial joint ven­ture agree­ment with HDFC Cap­i­tal Ad­vi­sors Ltd to build a mid-in­come hous­ing port­fo­lio. The first project un­der the al­liance will com­prise 185 acres at Sar­japur Road, Ben­galuru, for which about Rs 256 crore will be drawn from HDFC.

Narayan said the project is in the plan­ning stage but will serve mid-mar­ket home buy­ers.

Last month, with the in­au­gu­ra­tion of its pre­mium res­i­den­tial project Lake­side Habi­tat, the Ben­galuru-based com­pany also crossed the mile­stone of de­vel­op­ing 100 mil­lion square ft in its three- decade long jour­ney, which is sig­nif­i­cant in the cur­rent real es­tate sce­nario.

Pres­tige is in the process of build­ing 57 projects with de­vel­opable area of around 62 mil­lion square feet and has a pipe­line of 31 up­com­ing projects spread over 43 mil­lion square feet, ac­cord­ing to the 2017-18 an­nual re­port. It is also ag­gres­sively pur­su­ing value-ac­cre­tive op­por­tu­ni­ties for and take over of projects in key mar­kets with high po­ten­tial to spur its growth.


Pres­tige plans to launch a hous­ing project in Noida

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