Prestige Group raises Rs 2,001 cr from ADIA, Kotak AIF

Bengaluru: Bengaluru-headquartered realty major - the Prestige Group - has secured an aggregate of Rs 2,001 crore in investment from the Abu Dhabi Investment Authority and Kotak Alternative Investment Fund to finance residential projects across four major cities, the company said in a statement on Monday.

These projects, spread across Bengaluru, Mumbai, Goa and the National Capital Region, are expected to cumulatively fetch Rs 18,000 crore in revenue, per the company.

“These funds will fuel the development of greenfield residential projects across the cities of Bengaluru, Mumbai, Goa, and NCR with a combined gross development value (GDV) of over Rs 18,000 crore, contributing significantly to the top line,” Venkat K Narayana, Group Chief Executive Officer, Prestige Group, said.

This deal is touted to be ADIA’s maiden investment directly into an Indian residential real estate platform. “In the past 5-6 years, about 90% of the private equity funding has gone into the non-residential sector in India. However, with the housing market seeing robust demand of late, we can expect more of such funding to come into the residential segment,” an industry stakeholder, who did not wish to be named, said.

“It is a quick way to raise capital for developers and a safe and swift route to earn healthy returns for funds,” the individual added.

ADIA has over the years made significant investments into India across a diverse range of assets, including equities, debt securities and so on. Overall, the sovereign fund has up to 20% invested in emerging markets and a maximum of 10% in what it categorises as ‘Developed Asia’.

Meanwhile, the Prestige Group is positive about closing the financial year 2023-24 with Rs 18,000-20,000 crore in total sales, company chief executive Venkat K Narayana told DH late last year. This would mark at least a 39% year-on-year growth over the Rs 12,931 crore clocked in FY23.

The company’s shares rose 7.68% to Rs 1,259.80 apiece on BSE following the announcement on Monday.