Prestige Estates Soars After Land Acquisition in NCR

22 Mar 2024 , 12:42 PM

Prestige Estates Projects witnessed a surge of over 5% in its share price during early trading on March 22, following its acquisition of 62.5 acres of land in Indirapuram Extension, NCR.

At the time of writing, Prestige Estates Projects’ stock was trading at ₹1,097.40 on the NSE, marking an increase of ₹48.75 or 4.65%.

The newly acquired land parcel is earmarked primarily for residential development and will be branded under the ‘The Prestige City’ format, adding to the company’s portfolio.

The acquisition cost, totalling ₹468 Crore, includes a revenue-sharing arrangement, reflecting the company’s strategic investment in expanding its real estate footprint.

In addition to this acquisition, Prestige Estates Projects recently unveiled plans for a luxury residential project named Prestige Somerville in Whitefield, Bangalore. Spanning across 6.5 acres, this project is estimated to generate revenue of ₹800 Crore.

Prestige Group, the parent company, established by Razack Sattar in 1986, is renowned for its real estate developments across South India, encompassing residential and commercial properties in major cities like Bangalore, Chennai, Kochi, and Hyderabad, among others.

Irfan Razack, Chairman, and Managing Director of Prestige Group, expressed excitement about the acquisition of prime land in NCR, noting it as an excellent opportunity for the Prestige Group to enhance its presence in the region. He highlighted the extension of ‘The Prestige City’ brand to NCR, following its successful implementation in Bengaluru, Mumbai, and Hyderabad, as a testament to the group’s dedication to providing large-scale integrated townships and developments. Razack expressed confidence that The Prestige City Indirapuram would establish new standards in this area, given the group’s track record of delivering iconic developments.

Venkat K Narayana, Group CEO of Prestige Group, emphasized the scale of the project, spanning over 10 million square feet of saleable area, with a projected Gross Development Value (GDV) exceeding ₹10,000 Crore. He underscored the group’s commitment to diversifying its sales portfolio and expanding its footprint. Narayana anticipates launching the project within the next two quarters and completing development within four years.

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