Prestige Estate Projects, a leading Indian real estate company, witnessed a remarkable surge in its stock price on Monday, soaring by nearly 9% and reaching a high of INR 21,272 per share on the Bombay Stock Exchange. This surge follows the announcement of significant funding received for future projects, including a INR 2,001 crore loan from Abu Dhabi Investment Authority (ADIA) and Kotak Alternative Investment Fund. The funds, totalling INR 18,000 crore, will fuel the development of new projects across four major Indian cities, with Prestige contributing 30-40% of the investment. Additionally, Prestige has expanded its ownership in Prestige Realty Ventures and streamlined its portfolio by transferring equity stakes. With projects in 13 major cities and a robust pipeline, Prestige Estate Projects solidifies its position as a key player in Indian real estate.
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Prestige Estate Projects, one of India's top real estate companies, had a great day on the stock market. Their shares went up by nearly 9% on Monday, reaching a high of INR 21,272 per share on the Bombay Stock Exchange. This big jump came after they announced they got a lot of money for their future projects. By the end of the day, their stock had gained over 8%, closing at INR 21,263.7.
This increase is no surprise considering how well Prestige has been doing lately. In the past six months, their stock has more than doubled, going up by 110%. That's much more than the overall real estate market, which went up by 63%. And in the last year alone, Prestige's stock has tripled in value.
Prestige has partnered with Abu Dhabi Investment Authority (ADIA) and Kotak Alternative Investment Fund, who gave them a loan of INR 2,001 crore. This is the first time ADIA has invested in Indian real estate, showing they believe in Prestige's plans. The money will be used to build new projects worth INR 18,000 crore across four major Indian cities.
Prestige will put some of their own money into each project, about 30-40%, and the rest will come from investors. They plan to start a new project every three months over the next year, and each project will take about 3-4 years to finish. This big deal follows another one they made in 2020, where they sold some of their completed buildings to Blackstone for INR 11,800 crore.
Irfan Razack, CMD of Prestige Group, expressed gratitude for the investors' trust and emphasised their shared commitment to delivering high-quality real estate developments in India. Prestige Group has prioritised expanding significant residential development, particularly township projects, and will distribute the funds accordingly.
CEO Venkat K Narayana highlighted that the current market conditions require rapid growth and consolidation. He emphasised that the deal can greatly accelerate business expansion, with the funds aiding in the development of new residential projects in greenfield areas across Bangalore, Mumbai, Goa, and the National Capital Region. This initiative is expected to significantly boost overall revenue generation for the company.
Besides the big funding news, Prestige also acquired a 50% partnership stake in Prestige Realty Ventures, consolidating its ownership to 99.90%. The company further streamlined its portfolio by transferring its equity stake in Thomsun Realtors to Prestige Retail Ventures. Noteworthy expansions include the acquisition of 62.5 acres of prime real estate in Indirapuram Extension, NCR for INR 468 crore.
Prestige is already a big player in Indian real estate, with projects in 13 major cities. They've built over 180 million square feet of buildings, including homes, offices, and stores. Right now, they're working on 56 projects covering 86 million square feet, with plans for 43 more projects in the future. As of September 2023, it had a land bank of approximately 728 acres.
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