Prestige Estates Projects Ltd, acting through its subsidiary Valdel Xtent Outsourcing Solutions, has proposed to buy out foreign investors in Exora Business Park for ₹600 crore.
Exora Business Park, situated on the outer ring road in Bengaluru, is a technology park developed by Prestige. It has been completely developed and leased to reputed multinationals such as JPMorgan, Juniper Networks, LinkedIn, PriceWaterhouse Coopers, Schneider Electric and Bosch.
BANGALORE, 12/02/2013: Irfan Razack Chairman and Managing Director, Prestige Group addressing at a press conference in Bangalore on February 12, 2013.Photo: G.R N. Somashekar
The transaction is expected to result in one of the largest exits in real estate private equity space.
“Exora Business Park buy will add ready stock of 2.13 million square feet of commercial space and gives 99 per cent control of the asset. The deal is expected to enhance rental income for Prestige Estates. Currently, the park yields around ₹135 crore rental income per year,” said Venkat K Narayana, Executive Director & CFO, Prestige Estates.
Commenting on the development, Irfan Razack, Chairman and Managing Director, Prestige Group, said: “We have, over the years, worked towards developing this project, deploying investment and expertise. The asset has matured and is completely leased out to marquee clients. This acquisition is a strategic decision and will result in increased asset base and contribute to the company’s annuity stream of income.”
Subhash Bedi, Chairman, Rising Straits Capital, said: “We have been equity partners in this project for more than eight years, and have supported it through the complete development and leasing lifecycle. The transaction is an excellent example of value creation through a long-term association with a trusted development partner.”