Media Room
Industry News
National Realty e-Magazine

Industry News

Select a year 

JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember                Back

Prestige Estates Projects considering REIT for its income generating assets
The Economic Times  |  October 14, 2019

Sobia Khan Bengaluru

Bengaluru-headquartered Prestige Estates Projects is considering REIT for its income generating assets as its looks to monetise assets.


Prestige Estates’ rental yielding assets is currently valued around Rs 10, 000 crore at 8% cap rate. The company’s rental income from retail and commercial properties is expected to reach Rs 2,600 crore in the next three-four years from Rs 927-crore exit rental income at present.


“One way to reduce dependency on debt is to look at REIT and we are working towards it,” said Irfan Razack Chairman Prestige Group. The company is also working towards India’s first retail REIT global investors bullish on developing countries such as India in the back of success of India’s first REIT. “ It can either be office or retail portfolio that will go first for REIT,” said Razack.


Prestige Group has more than 36 million sq ft of under-construction and upcoming office properties. It also has six malls in the pipeline in addition to 10 operational retail assets.


“We are in talks with global funds to float over $300-million commercial platform with a development potential of 10-15 million sq ft,” said Razack. The fund raising will be a precursor to the REIT listing. The firm is also looking to expand presence in NCR, Pune and Pune and has recently acquired 50% stake to develop total 2 million sq ft project with total 932 hotel rooms, 6.45 lakh sq ft office space apart from a 2 lakh sq ft convention centre.