Prestige Estates Proposes Raising Rs 5,000 Crore to Boost Hospitality Business
The Bengaluru-based company plans to raise funds through institutional investors or create a real estate investment trust to monetize its hospitality business.
Prestige EstatesReal Estate Investment TrustHospitality BusinessFundraisingInstitutional InvestorsReal EstateJun 22, 2024
The Bengaluru-based company is considering two options to monetize its hospitality business. One option is to create a real estate investment trust (REIT), which could be the first hotel REIT in India. The other option is to pursue an initial public offering (IPO) to raise capital. The company has established a subcommittee to supervise the process of monetizing its hospitality business.
Prestige Estates Projects has been expanding its hospitality portfolio and plans to double its capacity over the next 3-4 years with a total investment of Rs 1,700 crore. The company currently has 1,849 keys of hospitality assets across the country under various brands from the Hilton and Marriott portfolios.
The proposed fundraising plan is part of the company's strategy to hive off its businesses, including office, retail, and hospitality, to make them self-sustainable and raise capital against them. In April, the Prestige Group raised Rs 2,000 crore in a residential platform deal with the Abu Dhabi Investment Authority and Kotak AIF.
Information
Prestige Estates Projects is a leading real estate developer in India with a presence in several cities, including Bengaluru, Chennai, Hyderabad, and Pune. The company has a diverse portfolio of residential, commercial, and hospitality projects.
Prestige Estates Projects is a part of the Prestige Group, a leading business conglomerate in India with interests in real estate, hospitality, and education. The group has a strong track record of delivering quality projects and has established itself as a trusted brand in the Indian real estate industry.
Frequently Asked Questions
How much does Prestige Estates Projects plan to raise from institutional investors?
Rs 5,000 crore
What are the two options being considered by Prestige Estates Projects to monetize its hospitality business?
Creating a real estate investment trust (REIT) or pursuing an initial public offering (IPO)
How much does Prestige Estates Projects plan to invest in expanding its hospitality portfolio over the next 3-4 years?
Rs 1,700 crore
How many keys of hospitality assets does Prestige Estates Projects currently have across the country?
1,849 keys
How much did Prestige Group raise in a residential platform deal with the Abu Dhabi Investment Authority and Kotak AIF in April?
Rs 2,000 crore
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