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Prestige Group Will Buy Of Rs 342 Crore Mall Assets| Business News

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Prestige Estates, based in Bangalore, said on Monday it had purchased through a subsidiary investor CapitaLand’s interests in its shopping centers and residential projects for Rs.3,42 million.

Prestige Group will buy of Rs 342 crore mall assets.

The Singapore-based company, CapitaLand, had reached an agreement with the Prestige group in 2008 to invest in its shopping centers.

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Prestige Estates, based in Bangalore, said on Monday it had purchased through a subsidiary investor CapitaLand’s interests in its shopping centers and residential projects for Rs.3,42 million.

CapitaLand, based in Singapore, had reached an agreement with the Prestige group in 2008 to invest in its shopping centers.

The agreement involves the acquisition of 49% of the shares of CapitaLand in Forum Center City Mall in Mysuru, 50% in Forum Fiza Mall in Mangaluru, 50% in Forum Neighborhood Mall and residences with service in Oakwood in Bangalore, 25.4% of participation in Forum Sujana Mall in Hyderabad, 13% participation in a mall in Kochi and residential, 100% in Celebration Mall in Udaipur and 50% in the shopping center management company, Prestige said in a statement to the stock exchanges.

The acquisition would increase Prestige’s annuity portfolio at an estimated Rs 750 million a year in rental income, the company added.

‘This is a step in the expansion of our profits. Our long-term strategy is to diversify our sources of income, strengthen the annuity base and selectively deploy capital, “said Irfan Razack, president and CEO of the Prestige group.

‘Our current estimated annual income income is approximately Rs 7 billion. With this transaction, it will grow by Rs 750 million.

The portfolio includes five operating centers in Bengaluru, Hyderabad, Mangaluru, Mysuru and Udaipur, a shopping center management company, the Oakwood serviced residences in Bangalore and the properties under construction in Kochi, “said Venkat K Narayana, executive director of the Prestige group.

Analysts said the deal was a precursor to the group that sold shares in its rental portfolio. Prestige Estates has restructured its office, retail, hotel and residential verticals and is planning to sell shares in office and retail assets.

According to sources, the group plans to sell a 40-50 percent stake in rental assets and collect around $ 500 million. He intends to use the funds to invest in new projects and reduce his debts.

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