PRESTIGE TO REBUILD PORTFOLIO

Monday 11th January, 2021

Article Details
  • View Image
  • View PDF

PRESTIGE TO REBUILD PORTFOLIO Real estate developer Prestige Group plans tobuild more than 40 million sq. ft of office space after concluding a deal with Blackstone Group Lp. P6 Prestige to rebuild office biz in 5-7 yrs Prestige Group plans to build over 40 mn sq. ft of office space after finalizing a deal with Blackstone. See Page 6 Prestige to rebuild office portfolio in the next 5-4 years Machurima Nancy madhurima.n@livemint.com BENGALURU eal estate developer Prestige Group plans to build more than 40 million sq. ft of office space after concluding a deal with Blackstone Group Lp. The New York-based private equity giant received approval in December from the Competition Commission of India to buy five office parks, nine shopping malls, two hotels and four under-construction office complexes totaling 21 million sq. ft for $1.5 billion from Prestige. The deal will formally close in the coOming weeks. "We are gearing up to rebuild our office portfolio over the next 5-7 years, which will be a mix of both standalone buildings (400,000500,000 sq. ft) and office parks. This will be Prestige's 2.0 version, where in a postpandemic world, new-age office buildings will be CARAIIEI DAIVIIRAAD JRAINIT | eT e_ mn | _ Fe 77 . Firm will rebuild portfolio with both stand-alone buildings and office parks, said its CEO. Prestige's ambitious plan comes at a time when India's commercial office sector witnessed a pause after a sevenyear bull run. Several global companies have spoken about adopting a hybrid work model amid uncertainty on when people will return to offices. Theprojects are well-timed and will come into the market by 2022-end, Marwaha said. There are also three projects in Bengaluru and one in Kochi that Prestige and Blackstone designed differwill develop ently. Webelieve Thecompanyis jointly. Once asset managesettocloseadeal built,Prestige will ment and techfor sale of 21 hand them over nology i play million sq. ft of to RCS more significant . "Weare bullish roles,' Juggy real estate with on the office marMarwaha, CEO, New York-based ket despite some Prestige Office Blackstone Group vacancies in cerVentures, said in _ aninterview. Bengaluru-based Prestige plans to construct projects in Mumbai (7.5 million sq. ft), Hyderabad (4.5 million sq. ft), Pune (1 million sq. ft) and an office and hotel complex in Delhi's Aerocity (750,000 sq. ft) besides 27-30 million sq. ft of residential projectsin Bengaluru. | tain markets. Our clients have informed us that people are coming back to work this month even ifitsacertain percentage. There is fresh demand for nearly 7-8 million sq. ft of space in Bengaluru alone. There is also big demand from global in-house centres wanting to take some new space,' Marwaha said.