Prestige Group Finalises Blackstone Deal For Sale Of Commercial Projects 

Realty firm Prestige Estates Projects Ltd. has agreed to sell a large portfolio of office, retail and hotel properties to global investment firm Blackstone for an enterprise value of Rs 9,160 crore, according to a filing by the company with stock exchanges.

Bengaluru-based Prestige signed term sheets on Monday with the Blackstone group, and the deal is likely to be closed next month.

In October, Prestige Estates signed a non-binding letter of intent with Blackstone group entities for the sale of direct and indirect interest in certain commercial offices, retail and hotel properties, mall management and identified maintenance business.

"The consideration will be based on the enterprise value of about Rs 9,160 crore," the filing detailed.

The assets to be sold in the deal include 100% stake in six entities holding completed office assets and 85-87% stake in nine entities owning nine malls.

Up to 50% of the rights and interest in four entities owning under-construction office assets will also be sold.

That apart, Prestige will sell up to 85% in its hotel Oakwood Residences and up to 100% in hotel Aloft.

Sources said the total asset portfolio being acquired by Blackstone is around 21 million sq ft, including completed and under-construction commercial projects.

The deal is expected to be closed in early December after all the necessary approvals including that of the Competition Commission of India (CCI), they said.

According to the filing, the closure of the proposed deal is subject to completion of due diligence, negotiation and execution of asset specific definitive documents, satisfaction of the conditions precedent in such asset specific definitive documents and receipt of all necessary approvals.

The deal will be completed through a combination of primary investments, secondary investments, business transfers, asset transfers, joint ventures, demergers and slump sales.

The Prestige group will utilise the funds raised through this monetisation to partly retire debt as well as for future expansion.

U.S.-based Blackstone has invested around $8 billion in Indian real estate. It has sponsored two REITs (real estate investment trust) launched and listed so far in India -- Embassy Office Parks REIT and Mindspace Business Park REIT.