New Delhi, Dec 26 (PTI) Realty firm Prestige Group todaysaid it has purchased 66.66 per cent stake in its group firm,which holds a land parcel of 180 acres in Bengaluru, from RedFort India and land owners for Rs 324 crore.
The company already has 33.34 per cent stake in PrestigeProjects Pvt Ltd (PPPL), which has 180 acres of land inBengaluru.
Prestige group, through its wholly owned special purposevehicle (SPV), is acquiring 66.66 per cent stake from privateequity partner Red Fort India Real Estate and land owners inits group company Prestige Projects Pvt Ltd (PPPL), thecompany said in a statement.
PPPL has a land parcel measuring over 180 acres, which islocated near Sarjapur Road, Bengaluru.
Prestige Group intends to develop a affordable and mid-income housing project comprising of apartments, villas andplots on this land.
Irfan Razack, CMD, Prestige Group, said: "Our long-termstrategy to create value is to diversify our revenue base,expand earnings and strengthen our development pipeline. Thistransaction will help us enter into the affordable housingsegment in a big way."The proposed project in the SPV has a significantpotential to grow our profitable revenue base and furtherstrengthen our market share in the micro-market, he added.
Venkat K Narayana, CEO, Prestige Group said, "Thisstrategic acquisition of 66.66 per cent stake will move PEPL'sstake in SPV to 100 per cent ownership. The consideration forthe same is around Rs 324 crore."The total developable area of the project will be around7.5 million sq ft, he said, adding the company expects topline revenue potential of over Rs 3,500 crore from thisdevelopment. PTI MJHMKJ.
This is unedited, unformatted feed from the Press Trust of India wire.