News Digest

27 December 2017
Prestige to buy out Red Fort's stake in group

Real estate developer Prestige Group is set to acquire 66.66% stake from private equity partner Red Fort Capital and land owners in group company Prestige Projects Pvt. Ltd for Rs324 crore. Prestige already owns 33.34% in Prestige Projects, which has a 180-acre land parcel near Sarjapur Road in Bengaluru. Prestige Group now intends to develop a large-scale affordable and mid-income housing project comprising apartments, villas and plots on the plot. With this, Red Fort Capital exits its investment made in 2010-11. “This transaction will help us enter the affordable housing segment in a big way. The proposed project has significant potential to grow our profitable revenue base and further strengthen our market share in the micro-market,” said Irfan Razack, chairman and managing director, Prestige Group. Prestige will be building apartments at an entry price of Rs35-40 lakh, primarily in the mid-income segment. In 2015, Prestige bought Red Fort India Real Estate Holdco Llc, an information technology park and a villa project in Bengaluru. Red Fort had invested about Rs280 crore in the two assets—in Exora Business Parks in 2007 and in the villa project in 2010.

Read More