The joint venture entity will develop a mixed-use project with total 200 hotel rooms, while the rest will be office space.
BENGALURU | MUMBAI: Realty developer Prestige Group has picked up 28.99% stake in commercial development of a DB Realty project. The commercial property in Mumbai’s Bandra locality has a development potential of over 7 lakh sq ft and is valued at about Rs 2,100 crore, said two persons familiar with the development.
The joint venture entity will develop a mixed-use project with total 200 hotel rooms, while the rest will be office space. The deal marks Bangaluru-based Prestige Estates Projects’ entry into the Mumbai commercial market.
“DB Realty has already bought out the stake held by foreign fund Trinity Capital. This was a precursor to the deal between Prestige and DB Realty,” said one of the persons mentioned above.
The transaction is yet to be completed including the final development potential.
This is the second transaction between Prestige and DB Realty. Earlier in October 2019, the Bengaluru- headquartered firm had entered in to a joint venture with DB Realty to develop a hospitality-led mixed use project spread over 7.7 acres land parcel in Delhi’s Aerocity.
Prestige Group is planning to build India’s largest hotel and convention centre on the same land parcel.
In a stock exchange announcement, Prestige Group stated that Prestige Falcon Realty Ventures, wholly-owned subsidiary of Prestige Estates Projects, has acquired 1,32,854 equity shares representing 28.99% (without considering other convertible instruments in the entity) of the equity share capital of DB (BKC) Realtors from Trinity Capital (Ten) as per the terms and conditions agreed.
“The investment by Prestige in DB BKC Realtors is strategic. No plans have been firmed up for development yet, as several approvals and regulatory issues need to be resolved before the development can take place. As stated above, the plans are still at a very nascent stage and hence any comment on the above is speculative,” said a DB Realty spokesperson.