Prestige Group acquires a joint venture deal for a Commercial property located in Bandra, Mumbai.

Prestige Group, the real estate company, has purchased 28.99% stake in the commercial development of a DB Realty project. This Commercial property is located in Mumbai’s Bandra area which is having over 7 lakh sq ft development potential and priced at approximately Rs 2,100 crore.

The joint venture will develop a project for mixed uses, with a total of 200 hotel rooms, while the rest will be office space. The transaction represents the entrance into the Mumbai commercial market for Prestige Real Estate headquartered in Bengaluru.

“DB Realty has already acquired the stake owned by the Trinity Capital foreign fund, a precursor to the Prestige and DB Realty deal.” The transaction, including the final development potential, is yet to be completed.

This is the Prestige second deal with DB Realty. Prestige had earlier entered in a joint venture with DB Realty to construct mixed-use hospitality spread across 7.7 acres of land in Delhi’s Aerocity. In the same land, the Prestige Group plans to build India’s largest hotel and convention centre.

Prestige Group reported in a stock exchange announcement that Prestige Falcon Realty Ventures, a wholly-owned subsidiary of Prestige Estates Projects, gained 1,32,854 equity shares representing 28.99% (without including any convertible instruments in the entity) of DB (BKC) Realtors’ equity share capital from Trinity Capital (Ten) under the terms and conditions agreed upon.

“Prestige’s investment in BKC Realtors at DB is strategic. No plans have yet been signed up for construction, as it is necessary to resolve several permits and regulatory issues before development can take place. The plans are still at a very nascent stage, as mentioned above, and therefore any comment on the above is hypothetical,” a spokesman for DB Realty said.

Prestige is also looking to monetise assets by listing Real Estate Investment Trust (REIT) of its income-generating assets. It is in talks with global funds to build a commercial platform of over $300 million with a development potential of 10-15 million sqft. The firm also seeks to expand its reach through asset classes in the NCR, Delhi and Pune region.