Prestige Group plans to set up $500 million investment funds

The Prestige Group plans to set up and manage two real estate-focused alternative investment funds (AIF) worth $500 million to purchase land to fuel its residential business.

The funds will be targeted at institutional investors and high net worth individuals (HNIs). The investors will review the stressed residential projects and those that have gone to the National Company Law Tribunal (NCLT).

For the proposed AIF funds, Prestige Estates will be the sponsor, while the institutional investors will be the co-sponsors.

The proposed funds will invest in real estate projects in the top six markets, including Mumbai Metropolitan Region (MMR), Pune, Bengaluru, Chennai, National Capital Region (NCR) and Ahmedabad.

The funds will help in business growth and build land banks across cities.

Prestige Estates witnessed residential sales of nearly Rs 7,300 crore for the third quarter (Q3) of FY22 and expected Rs 10,000 crore at the end of the year, despite the challenges faced during the Covid-19 pandemic.

The company has about 83 million sq ft of residential projects under construction or in the pipeline. The company's net debt stood at Rs 4,171.50 crore, having an average borrowing cost of 9.38%.

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