Realty firm Prestige Group today said it has purchased 66.66 per cent stake in its group firm, which holds a land parcel of 180 acres in Bengaluru, from Red Fort India and land owners for Rs 324 crore.
The company already has 33.34 per cent stake in Prestige Projects Pvt Ltd (PPPL), which has 180 acres of land in Bengaluru.
Prestige group, through its wholly owned special purpose vehicle (SPV), is acquiring 66.66 per cent stake from private equity partner Red Fort India Real Estate and land owners in its group company Prestige Projects Pvt Ltd (PPPL), the company said in a statement.
PPPL has a land parcel measuring over 180 acres, which is located near Sarjapur Road, Bengaluru.
Prestige Group intends to develop a affordable and mid- income housing project comprising of apartments, villas and plots on this land.
Irfan Razack, CMD, Prestige Group, said: "Our long-term strategy to create value is to diversify our revenue base, expand earnings and strengthen our development pipeline. This transaction will help us enter into the affordable housing segment in a big way."
The proposed project in the SPV has a significant potential to grow our profitable revenue base and further strengthen our market share in the micro-market, he added.
Venkat K Narayana, CEO, Prestige Group said, "This strategic acquisition of 66.66 per cent stake will move PEPL's stake in SPV to 100 per cent ownership. The consideration for the same is around Rs 324 crore."
The total developable area of the project will be around 7.5 million sq ft, he said, adding the company expects top line revenue potential of over Rs 3,500 crore from this development.
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