Bangalore-based real estate player Prestige Estates Projects said Singapore-based GIC Realty Pte Ltd, the country’s sovereign wealth fund, has signed a term sheet to explore the possibility of acquiring a ‘significant minority’ stake in the Indian company’s commercial buildings business.
The term sheet is to explore an investment by Reco Jade Ind Pvt Ltd, a subsidiary of GIC (Realty) Pte Ltd into Prestige Exora Business Parks Ltd, which owns office properties in India.
The two companies have “entered into a preliminary term sheet in relation to a possible significant minority investment by Reco in Exora,” Prestige Estates Projects said.
At present, 100% of the equity in Exora is held by the parent company.
Prestige Group is one of the most recognizable brands in the real estate market of Bangalore and Chennai. It operates many large office buildings that are home to big multinational companies.
The company also has projects in Pune, Goa and Ahmedabad. It has completed 212 real estate projects with developable area of over 81 mn sft.
Prestige Estates has 51 ongoing projects across segments, with total developable area of 53 mn sft. It also has 48 mn sff of upcoming projects and holds a land bank of 424 acres with potential developable area of over 42 mn sft, according to the company.
The real estate company, led by businessman Irfan Razack, recently entered into an agreement with HDFC to jointly develop affordable housing projects at a cost of Rs 2,500 cr.