– Prestige Estates Projects in India finalizes a significant deal worth USD 240 million with the Abu Dhabi Investment Authority and Kotak Alternate Investment Fund to develop residential projects in key Indian cities.

– The agreement covers projects in Bengaluru, Mumbai, Goa, and the National Capital Region, with a total gross development value exceeding 180 billion rupees ($2.16 billion), according to Prestige.

– The deal involves quasi-equity, primarily comprising optionally convertible debentures and non-convertible debentures.

Prestige Estates Projects, an Indian real estate company, has announced a significant deal valued at USD 240 million with the Abu Dhabi Investment Authority and Kotak Alternate Investment Fund.

The agreement aims to facilitate the development of residential projects across several key regions in India, including Bengaluru, Mumbai, Goa, and the National Capital Region.

These projects collectively boast a gross development value exceeding 180 billion rupees ($2.16 billion), according to Prestige.

Venkat K Narayana, CEO of Prestige Group, informed Reuters that the deal primarily involves quasi-equity, featuring predominantly optionally convertible debentures and non-convertible debentures.

The company currently manages 41 ongoing and 26 upcoming residential projects. India’s burgeoning economy, coupled with favorable policy reforms and infrastructure advancements, has made real estate, particularly in the office sector, an attractive destination for foreign investments.

In 2023 alone, the sector witnessed over $5.8 billion in institutional investments across 53 deals, as reported by real estate management firm JLL.

Furthermore, the residential segment is poised to witness robust investment momentum, fueled by rising disposable incomes and the growing demand for spacious homes, as highlighted in a report by real estate firm Colliers earlier this year.

Shobhit Agarwal, CEO of the capital markets division at real estate consultancy ANAROCK Group, commented that such deals are likely to pave the way for more private investments, beyond traditional qualified institutional placements (QIPs).

In a similar vein, last year saw real estate developer Embassy Group securing 12.50 billion rupees from Bain Capital, while Valor Estate (formerly D B Realty) raised 9.20 billion rupees from investors including Morgan Stanley and BNP Paribas in March.

Prestige Estates Projects operates across more than 12 major locations in India, with approximately half of its completed projects falling under the residential category and around 42% in the commercial sector.