People gather at the foot of a staircase at a shopping mall. (Photographer: Brent Lewin/Bloomberg)

Prestige Group Buys Rs 324-Crore Stakes From CapitaLand In Rent-Yielding Assets

Real estate developer Prestige Group bought CapitaLand Ltd.’s stakes in shopping malls and serviced-homes assets for Rs 324 crore to strengthen its rent-yielding business in the third deal in two months.

It acquired the Singapore-based company’s interest in ready and operating retail malls in Bengaluru, Hyderabad, Mangaluru, Mysuru and Udaipur; a mall management company, operating Oakwood serviced residences in Bengaluru and under-construction properties in Kochi, Venkat Narayana, chief executive officer of Prestige Group, said in a media statement. The deal is expected to give it an incremental rental income of Rs 75 crore a year.

This is line with the strategy to expand its rental income base, Narayana said. “Our current estimated exit rental income for the year ending March is around Rs 700 crore, annualised. With this transaction, it will grow by another Rs 75 crore per annum.”

It’s the third stake purchase by the group in joint ventures in two months. It acquired Red Fort India Real Estate’s stake inPrestige Projects for Rs 324 crore in December and increased its holding to take full control of Prestige Pallavaram Ventures for an undisclosed amount.

CapitaLand is one of Asia's largest real estate companies and has a global portfolio comprising integrated developments, shopping malls, serviced residences.

Prestige Group acquired:

  • CapitalLand’s 49 percent in Prestige Mysore Retail Ventures Pvt. Ltd. (Forum Centre City Mall) to take full control.
  • 49 percent in Prestige Mangalore Retail Ventures Pvt. Ltd. (Forum Fiza Mall) to take full control.
  • 50 percent in Prestige Garden Constructions Pvt Ltd. (Forum Neighbourhood Mall and Oakwood serviced residences in Bangalore) to take full control.
  • 24.5 percent in Babji Realtors Pvt. Ltd. (Forum Sujana Mall, Hyderabad) to take its holding to 49 percent.
  • 13 percent in Thomson Realtors Pvt. Ltd. (Mall at Kochi and residential apartments) to take its stake to 50 percent.
  • Acquire Flicker Projects Pvt. Ltd. (Celebration Mall, Udaipur).
  • 50 percent in CapitaLand Retail Prestige Mall Management Pvt. Ltd. (mall management company) to take full control.