Rephrase the title:Prestige group raises ₹2,001 cr from ADIA, Kotak AIF to fund expansion

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New Delhi, Realty firm Prestige Estates Projects Ltd has raised Rs 2,001 crore from Abu Dhabi Investment Authority (ADIA) and Kotak AIF to develop housing projects across four major cities, as part of its expansion plan. In a regulatory filing on Monday, Prestige Group said the company, through its subsidiaries, has “entered into a landmark deal with ADIA and Kotak AIF for Rs 2,001 crore (around USD 240 million) to capitalise on growth opportunities in the residential sector”.

The fund will be used to develop projects with an estimated revenue potential of Rs 18,000 crore, it added.

“This marquee deal not only underscores the confidence of institutional investors in Prestige Group’s execution and corporate governance but also reflects our shared commitment to delivering excellence in real estate development pan-India,” Irfan Razack, Chairman & Managing Director of Prestige Group, said.

When contacted, Prestige Group CEO Venkat K Narayana said the company has raised this fund in a quasi-equity form and will be used to develop four housing projects in Delhi-NCR, Mumbai, Goa and Bengaluru.

ADIA and Kotak AIF will have stakes in the special purpose vehicles (SPV) to be created for the development of these four projects, he added.

Bengaluru-based Prestige Group, which is one of India’s leading real estate developers, termed the strategic deal as a significant milestone in its growth trajectory.

“The collaboration with ADIA and Kotak AIF represents a considered move towards adopting strong and organic growth for Prestige Group,” the filing said.

The deal, with its substantial size, upholds the company’s vision to sustain its leadership position in the industry, Prestige Estates said.

“It is aimed at catalysing the development of early-stage residential projects, ensuring the company’s commitment to prudent expansion and diversified growth,” the company said.

Given the increasing demand and consolidation in the sector, Venkat said this deal will help in accelerating growth and expansion.

“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 crores, contributing significantly to the top line,” he said.

Prestige Group has a legacy of almost four decades in real estate development. It has a diversified business model catering to various segments, viz residential, office, retail, hospitality, property management and warehouses with operations in more than 12 major locations in India.

The Group has completed 300 projects spanning a developable area of 188 million square feet.

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