Real Estate Mumbai
Prestige Estates to Monetize Hospitality Assets, to Raise $598.6 Million
By GeoSquare News Desk · Published 2024-06-22
The Indian real estate market is abuzz with news of Prestige Estates, a leading developer, planning to raise a substantial amount of $598.6 million by issuing shares to institutional investors. The company's board has approved the monetization of its hospitality assets through a share issue, with a sub-committee formed to oversee the process.
This move comes as no surprise, given the sustained travel demand and successful listings of hotel firms in recent times. Prestige Estates had been working on hiving off and listing its hospitality business, which operates 10 hotels in Bengaluru and Kochi, including JW Marriott and Sheraton Grand. The company's decision to raise capital was flagged in May, and now, it has taken a significant step towards achieving this goal.
Industry experts believe that the monetizing bid largely means that Prestige will seek greater value for its hospitality business and will likely go for an initial public offering (IPO). Karan Khanna, a research analyst at Ambit Capital, said, 'The company will seek greater value for its hospitality business and will likely go for an initial public offering.'
Prestige Estates has tapped JM Financial, JP Morgan, and CLSA as bankers for the listing of its hospitality business. The company's shares closed 1.5% lower on Friday, but the move is expected to boost investor confidence in the sector. Consumer giant ITC is also looking to carve out its hotel business, indicating a growing trend in the industry.
Information
Prestige Estates is a leading Indian real estate developer with a strong presence in the hospitality sector. The company operates 10 hotels in Bengaluru and Kochi, including JW Marriott and Sheraton Grand.
Prestige Estates is a renowned real estate developer in India, with a diversified portfolio of residential, commercial, and hospitality projects. The company is known for its commitment to quality and customer satisfaction, with a strong presence in the Indian real estate market.