Prestige Estates Signs Deal With Blackstone For Stake Sale In Firm's Assets

Real estate player Prestige Estates has signed a deal with private equity major Blackstone Group for stake sale in some of the company’s commercial, retail and hotel properties.

Though Prestige has not disclosed the deal amount, the US-based PE fund manager could buy the company's assets worth $2 billion (over Rs 14,000 crore).

According to a NSE filing, Prestige Estates has signed a non-binding letter of intent with Blackstone and the transactions will be consummated through a combination of primary investments, secondary transactions, joint ventures or such other modes, as may be mutually agreed between the parties.

While Blackstone is looking to acquire 20 million sq ft of commercial space, including 16 million sq ft of ready and completely leased assets of Prestige Estates, Business Standard had reported that the company is planning to build twice the amount of commercial property space it is looking to sell to the global fund manager.

Prestige Estates is looking to sell the assets to reduce debt and generate liquidity via the Blackstone deal.

Blackstone is the largest office owner in the country, with real estate assets worth $20 billion in the country. It has joint ventures with Panchshil Realty, K Raheja Corp, Salarpuria Sattva, among others.

Blackstone's two joint ventures with Embassy group and K Raheja Corp have floated real estate investment trusts or REITs in the country. Its another JV with Panchshil Realty is gearing up for a REIT, reports said.

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor