Prestige forms JV with DB Group to invest Rs 2,000 cr on hotel, convention centre project in Delhi

Prestige Estates Projects Ltd on Tuesday announced a joint venture with DB Group to develop a large hotel and convention centre project at Aero City in the national capital with an investment of Rs 2,000 crore. DB Group had acquired the development rights on the 7.70 acre land parcel in 2009 from Delhi International Airport Ltd (DIAL).

"Prestige will invest alongside DB Group into building India's one of the largest hotel and convention centres at DIAL Aero City in Delhi. "The total investment is to the tune of Rs 2,000 crore, which is the balance required to complete the project and Prestige will bring in Rs 355 crore for 50 per cent equity stake in the joint venture," Prestige said in a statement.

The excavation work has been completed and the proposed time to complete this project is by 2022. The joint venture will develop a hotel with 932 keys, a convention facility of over 2 lakh sq ft (20,000 seat capacity) and office spaces with business centre of about 6.5 lakh sq ft.

The development will have a total built-up area of about 3.5 million sq ft. Property consultant JLL India facilitated the deal. Last month, Prestige announced foray into the Delhi-NCR market in tie-up with local developer Ace Group to launch its first housing project in Noida with an investment of around Rs 500 crore on construction.

Prestige group Chairman Irfan Razack said: "This strategic collaborative model will help us make an impactful entry into NCR region." "We will continue to invest and leverage our expertise to build a wide range of real estate developments across key locations in India. This transaction is in line with our strategy of steady, focused acquisition, and capitalize on consolidation opportunities," Razack added.

Prestige CEO Venkat K Narayana said: "This transaction retains a great deal of upside potential for all the stakeholders. Once operational and stabilized, the hotel and the convention centre is expected to register NOI (net operating income) of Rs 300 crore and office space to register NOI of Rs 170 crore." Currently, the Group has 8 operating luxury hotels with 1,262 keys and 297 keys under construction. The addition of this new asset with 932 keys will further strengthen our hospitality business, making it to 2,491 keys portfolio.

Prestige group, one of the leading real estate developers in the country, has legacy of over three decades in real estate development. It has diversified business model across residential, office, retail, and hospitality segments with operations in 12 key locations in India. The group has completed 236 projects with developable area of 123 million sq ft and has 48 ongoing projects across segments, with total developable area of 48 million sq ft.

Further, it has 55 million sq ft under planning and holds a land bank with potential developable area of over 29 million sq ft. The consolidated turnover of the company during 2018-19 was Rs 5,284 crore with operating income of Rs 1,566 crore.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)