Prestige Estates Projects has acquired a prime sea-facing land parcel in south Mumbai for over Rs 704 crore, setting a new benchmark for land prices. The plot, valued at over Rs 306 crore per acre, was purchased from DB Realty's subsidiary. Prestige Group plans to develop luxury residential towers on the plot, further expanding its presence in Mumbai's luxury real estate market. Additionally, Prestige Estates Projects has obtained complete ownership of two key projects in central Mumbai. The ongoing market consolidation favours established developers, leading to increased activity in land transactions across major property markets.
Prestige Estates Projects, a prominent realty developer, has made a significant acquisition in the luxury real estate market by purchasing a prime sea-facing land parcel in south Mumbai. Through its subsidiary, Prestige Projects, the company has acquired the land from DB Realty's Marine Drive Hospitality & Realty for over Rs 704 crore. This transaction sets a new benchmark for land prices, with the plot valued at over Rs 306 crore per acre. Initially planned as a 125-story luxury hotel, the project underwent modifications and was later transformed into a luxury residential development comprising two towers. However, this revised plan never materialized.
Prior to Prestige Projects' involvement, Edelweiss Asset Reconstruction Company attempted to auction the land parcel to recover a loan and interest amounting to Rs 473 crore. Upon the failure of DB Realty's subsidiary, Marine Drive Hospitality, to repay a loan worth Rs 439 crore, Edelweiss ARC assumed ownership of the property. As a result, DB Realty employed the funds received from Prestige Projects to repay its lenders, concluding the transaction. In addition, Prestige Projects has assumed certain loan obligations from DB Realty, resulting in the release of security interests associated with the property. Consequently, there are no existing charges, mortgages, or encumbrances on the plot.
DB Realty acquired the land in 2005 as part of a redevelopment project. However, due to challenges related to obtaining approvals for a higher floor space index, the planned luxury hotel project was abandoned. DB Realty and Pune-based Panchshil Realty had intended to jointly develop the plot, but the non-payment of loans resulted in the halt of work on the luxury towers. Prestige Group, looking to expand its presence in Mumbai's luxury real estate market, plans to develop two luxury residential towers on the plot, offering breathtaking views of the Queen's Necklace and the Arabian Sea.
Tariq Ahmed, CEO of West India at Prestige Group, expressed excitement about the project, emphasizing the group's commitment to delivering exceptional living experiences. In addition to this acquisition, Prestige Estates Projects has recently acquired complete ownership of two key projects in central Mumbai's Bandra-Kurla Complex (BKC) and south Mumbai's Mahalaxmi locality. These projects, currently under construction, have a combined potential gross leasable area of 2.79 million square feet and 2.9 million square feet of Grade A office space. They are expected to be completed within the next 3–4 years, further strengthening Prestige Group's esteemed portfolio.
Market experts predict that the ongoing market consolidation, favouring larger and more established developers, is expected to gain momentum as they demonstrate superior execution capabilities and enjoy enhanced access to liquidity. Consequently, transactions involving land parcels have witnessed a resurgence, with numerous deals, including outright acquisitions and joint ventures, shaping up in key property markets across Mumbai, Pune, Chennai, Hyderabad, and Bengaluru.
Advertisement
Facebook
Whatsapp
