Prestige Estates jumps 3% on CapitaLand's acquisition

NEW DELHI: Shares of Prestige Estates climbed over 3 per cent in Tuesday's trade after the realty developer, through its subsidiary, concluded acquisition of CapitaLand's stake in its various special purpose vehicles for around Rs 342 crore.

With these properties located in key growth markets across India, the acquisition will boost Prestige's annuity portfolio with an estimated incremental rental income of Rs 75 crore per annum, the developer informed stock exchanges.

Following the announcement, the stock rose 3.04 per cent to hit a high of Rs 328.10 on BSE.


The acquisition includes a 143-key operating Oakwood serviced residences at Whitefield in Bangalore with a revenue of around Rs 19 crore and a residential project with a potential developable area of 0.6 million sq ft at Kochi.

"This move fits well with our strategy of expanding rental income base. Our current estimated exit rental income for FY18 is around Rs 700 crore annualised," Venkat K Narayana - CEO, Prestige Group was reported by ET as saying.

Last week, the company announced acquiring balance 66.7% stake in group company Prestige Projects for Rs 324 crore from private equity partner Red Fort India Real Estate and landowners.