Realty agency Prestige Estates Projects Ltd has partnered with Brigade group to collectively develop a business project, comprising a shopping center and a hotel, in Bengaluru at an estimated development value of round Rs 500 crore.
The two main builders have collectively taken a 7.5-acre land on a 99-year lease positioned at Old Madras Road (OMR) in Bengaluru.
“Prestige and Brigade group have joined together to develop one million sq ft area in this project. It will have a shopping mall and a small hotel of around 125 keys in this project,” Prestige group Chairman and Managing Director Irfan Razack advised PTI.
He stated Prestige group can have 70 per cent shareholding in the project whereas Brigade can have 30 per cent stake.
On Tuesday, Prestige Estates knowledgeable exchanges that it has entered right into a Limited Liability Partnership settlement (LLP) with Mysore Projects Pvt Ltd, a wholly-owned subsidiary of Brigade Enterprises Ltd in Prestige OMR Ventures LLP.
Prestige Estates Projects and Mysore Projects Pvt Limited are the companions in Prestige OMR Ventures LLP in the ratio of 70 per cent and 30 per cent, respectively.
Brigade additionally knowledgeable this improvement individually to exchanges.
Razack stated the development work will begin after taking all the required approvals.
Both the companions will make fairness investments in addition to elevate debt to develop this premium business project, he stated.
Razack stated the Prestige group stays bullish on the long-term development prospect of India’s business actual property sector regardless of disruption attributable to the COVID-19 pandemic.
The group would proceed to build business portfolio and likewise monetise it at opportune time, he added.
Last week, Prestige Estates Projects introduced that it has agreed to promote sure workplace, retail and hotel properties to world funding agency Blackstone — in an enormous ticket actual property deal estimated at round Rs 12,000 crore.
Prestige group didn’t disclose the deal measurement, however sources had stated that the Bengaluru-based agency has signed time period sheets with Blackstone to promote business properties for an enterprise worth of round Rs 12,000 crore.
The deal is anticipated to be closed by finish of the subsequent month in any case the required approvals together with that of the Competition Commission of India (CCI), sources stated.
According to sources, the full workplace, retail and hotel belongings to be monetised by way of this deal may very well be 15-20 million sq ft each accomplished and underneath development.
Two lodges with 336 keys are additionally a part of the deal.
Prestige group will utilise the fund raised by way of this monetisation to partly retire its debt and future growth.
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