Real estate developer Prestige Estates Projects is looking to float a joint platform with Kotak Realty Fund to invest in its residential projects. The platform will have a corpus of $500 million (Rs 4,100 crore). Under the platform, the Kotak fund will invest and Prestige will develop the projects. According to experts, this will be the largest platform in the residential space in recent years.
Prestige will partner with Kotak for a platform. The platform will deploy $500 million in multiple projects,T he company has set a sales booking target of Rs 25,000 crore in next three years, and a target or Rs 12,000 crore for FY23.
The platform has identified four projects to begin with, he said, adding that three of them are in Bengaluru and one is in Chennai. Narayana said demand for larger homes has increased after the pandemic and they will develop new projects from the new platform.
Prestige also has a Rs 2,500-crore platform with HDFC Capital for affordable housing where it has drawn Rs 300 crore so far. In 2021, Prestige sold a portfolio of commercial assets to Blackstone for over Rs 9,000 crore in two phases. The portfolio included office properties, malls, etc.
Kotak Realty Fund has been in news in recent months for a number of developments. Late last year, Kotak Investment Advisors (KIAL), the parent of KRF, secured an anchor investment of $500 million from a subsidiary of the Abu Dhabi Investment Authority (ADIA) for its 13th real estate fund with a total size of $1 billion. It recently invested Rs 1,100 crore in Bharat Hotels, the owner of LaLiT Hotels. In 2021, Kotak Realty Fund set up a joint platform with Guardians of Real Estate for development management. Prestige reported sales bookings of Rs 9,000 crore in nine months of the current fiscal and expects to end the year with pre-sales of over Rs 12,000 crore, on the back of 10 million sq ft of new project launches in Q4FY23, the company said.
By FY26, Prestige targets to double new bookings in the residential segment to Rs 25,000 crore with a contribution of Rs 15,000 crore coming from non-Bengaluru markets. While it already has presence in Mumbai and Hyderabad, the company is scouting for opportunities in the NCR and Pune, Motilal Oswal Research said.
With a project pipeline of 73 million sqft and focus on business development across markets, PEPL intends to maintain new launches at over 30 million sqft over the next three years, the brokerage said, adding that the company expects to spend Rs 2,500-3,000 crore annually on new project additions in order to achieve its pre-sales target of Rs 25,000 crore.
