Prestige Estates goes “Black!”

about 4 months ago
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Prestige Estates Projects announced on Friday evening that it has completed phase 1 of proposed transaction with Blackstone Group.

Reacting to this, the stock price opened at its intraday hgh point at Rs.302.50, up over 4%. Its 52-week high is at Rs.314.95.

The enterprise value, forming part of phase 1, is approximately Rs.7467 crore out of the total enterprise value of approximately Rs.9160 crore.  

The overall transaction (Phase1&2) includes:

  1. 100% stake sale in six completed office projects (include a hotel) and 50% stake sale in four under construction projects.
  2. 85% stake sale in nine Shopping malls

Phase 1 of the transaction includes sale of twelve assets/undertakings comprising of completed retail, office and hotel assets.

Phase 2 of the transaction is expected to get completed by the end of Next Quarter.

Post the deal, the company will be left with residential projects, some minor rental assets and net debt of Rs 1,000 crore.

The company said that it has a strong development pipeline of about 43 million sq.feet office and retail portfolio in the key locations across the cities and in the next 4-5 years it is projected to yield rentals of over Rs.3000 crore, a growth close to 10x the post deal rental portfolio of about Rs.300 crore.

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