Prestige, Kotak, Abu Dhabi Investment Authority Partner For INR 18000 Cr Development Projects

Prestige Group, in a strategic alliance with the Abu Dhabi Investment Authority (ADIA) and Kotak Alternate Investment Fund, has embarked on a venture to propel residential project development in India with an investment value of Rs 18,000 crore ($2.4 billion). This collaboration, which sees an initial investment of Rs 2,001 crore ($270 million) by the partners, is poised to catalyze the construction of early-stage housing projects.

It's a move that shows Prestige Group's ambitions for expansion and diversified growth across the Indian subcontinent.

Additionally, Prestige Group has garnered a $102 million investment from HDFC Capital Advisors and GIC for the development of greenfield residential ventures across key Indian metros including Bengaluru, Mumbai, Goa, and the National Capital Region (NCR). This influx of funds not only avails Prestige of more favorable financing terms but also promises lucrative returns for HDFC Capital Advisors and GIC.

Boasting a versatile portfolio that spans across residential, office, retail, hospitality, property management, and warehouse sectors, Prestige Group has made significant strides with the successful completion of 300 projects, marking a development footprint of 188 million square feet.

This partnership, marking a significant milestone for Prestige, ADIA, and Kotak AIF, aims to bolster the residential real estate sector in India. It follows on the heels of ADIA's $500 million investment with US-based Hines in 2018 for office projects and aligns with similar large-scale investments in the sector, such as Warburg Pincus's Rs 1,100 crore investment with the Runwal Group in 2019 to develop shopping malls, and Blackstone's collaborations with the Embassy Group.

Venkat K Narayana, the CEO of Prestige Group, remarked on the potential of this deal to fast-track the group's growth and expansion, in light of the increasing demand and sector consolidation. He highlighted that the infusion of these funds is expected to significantly boost the development of greenfield residential projects across Bengaluru, Mumbai, Goa, and NCR, with a combined Gross Development Value (GDV) surpassing Rs 18,000 crore, thereby making a substantial contribution to the group's revenue.