Prestige Estates is in talks with the US-based agency Blackstone to promote an enormous portion of its business workplace portfolio and a few malls for at the very least $1.5 billion as half of efforts to cut back debt, a number of folks aware of the matter stated.
The deal, if concluded, could be one of the largest this 12 months in the true property area, which has been struggling on account of the pandemic. Discussions are stated to be at a sophisticated stage and the deal might be price $1.5-1.Eight billion.
Blackstone stated it had no feedback to supply whereas messages despatched to Prestige didn’t elicit a response until the time of going to press. Prestige’s web debt was Rs 8,174 crore for the fiscal ended March 31, up 10% from the 12 months-in the past interval, in accordance with the corporate’s final investor presentation.
Sources stated Prestige is placing on the block 15 million sqft of workplace and malls. 8-10 properties are anticipated to be half of the deal. Prestige has 111 accomplished tasks of 36 million sqft, which yield annual leases of Rs 714 crore. Another 12 tasks unfold throughout 15 million sqft are underneath building.
The deal will improve Blackstone’s place as the most important actual property investor within the nation. It may even have a much bigger mall presence. Prestige has 10 working malls unfold throughout 7 million sqft and yielding annual rents of Rs 335 crore.
Blackstone’s retail arm, Nexus Malls, has 9 malls, together with the Seawoods Grand Central Mall in Navi Mumbai and Elante Mall in Chandigarh.
Last 12 months, Blackstone and Prestige have been in talks to merge their mall companies however the deal didn’t materialise. TOI had reported earlier this 12 months that Prestige was in talks with Singapore’s sovereign wealth fund GIC, Qatar Investment Authority (QIA) and Abu Dhabi Investment Authority (ADIA) for an funding of about $400 million. Those talks seem to have stalled.
Malls and accommodations have been hit the toughest by Covid-19 as a result of of low footfalls and nil journey. According to Crisil, malls in India have debt of Rs 4,200 crore however their revenues are set to halve this fiscal. Bulge bracket funds like Blackstone and Brookfield are actively trying to purchase into malls in each tier-1 and -2 cities, which could be later bundled into an REIT.