Prestige Estates acquires 21-acre land parcel in Bengaluru; shares slide marginally

Prestige Estates share price took a marginal dip in early trade on April 5 as the company announced the acquisition of a 21-acre land parcel in Whitefield, Bengaluru for Rs 450 crore.

At 09:26am, Prestige Estates Projects was quoting at Rs 1,300.05, down Rs 5.20, or 0.40 percent, on the BSE.

The acquired land will be planned for residential development spanning approximately 4 million square feet of developable area, comprising around 1,800 apartments.

"The prime land in Whitefield, Bengaluru presents an excellent opportunity for us to expand our presence in a large IT corridor. This large-format project spans over 4 million Sft of developable area, with a projected Gross Development Value (GDV) of Rs 4,500 crore," said Irfan Razack, Chairman and Managing Director of Prestige Group.

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Brokerage firm Motilal Oswal, in its April 2 report, reiterated its buy rating on the stock with an increased target price of Rs 1,535, indicating a 17% upside potential.

On April 1, the company, through its subsidiaries, signed a deal worth Rs 2,001 crore with the Abu Dhabi Investment Authority and Kotak AIF for growth opportunities in the residential sector with a gross development value of Rs 18,000 crore.

In March, the company acquired 50% partnership interest in Prestige Realty Ventures for approximately Rs 165 crore to be settled within the forthcoming 90 days.

Post acquisition, the company will hold 99.90% partnership interest in the said entity.