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Prestige Group is planning to collaborate with Kotak Realty Fund to create a joint platform for investing in residential projects. The platform will have a total fund of $500 million (equivalent to Rs 4,100 crore). Kotak Realty Fund will provide the investment, while Prestige Estate Projects will oversee developing the projects. This joint platform is expected to be the largest in the residential sector in recent years.
Prestige has set a sales booking target of Rs 25,000 crore within the next three years and a target of Rs 12,000 crore for FY23. The platform has already identified four projects to start with, three of which are in Bengaluru and Chennai.
Prestige Group has another platform with HDFC Capital for affordable housing, which has a fund of Rs 2,500 crore. So far, they have drawn Rs 300 crore from this platform. In 2021, Prestige sold a portfolio of commercial assets, including office properties and malls, to Blackstone for over Rs 9,000 crore in two phases.
Kotak Realty Fund has been making headlines recently for various developments. In late 2020, Kotak Investment Advisors (KIAL), the parent company of KRF, secured an anchor investment of $500 million from a subsidiary of the Abu Dhabi Investment Authority (ADIA) for its 13th real estate fund, which has a total size of $1 billion. Recently, KRF invested Rs 1,100 crore in Bharat Hotels, the owner of LaLiT Hotels. In 2021, Kotak Realty Fund partnered with Guardians of Real Estate to create a joint platform for development management.
Prestige has announced that it recorded sales bookings of Rs 9,000 crore in the first nine months of the current fiscal year. They anticipate that by the end of the year, they will have pre-sales of over Rs 12,000 crore due to the launch of 10 million sq ft of new projects in Q4FY23. Prestige aims to double new bookings in the residential segment to Rs 25,000 crore by FY26, with Rs 15,000 crore coming from non-Bengaluru markets.
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