Prestige Company signs an agreement with the Abu Dhabi Investment Authority and the Kotak Alternative Fund to develop real estate in India.
Company signed Indian Prestige For real estate development, an agreement worth $240 million with Abu Dhabi Investment Authority(Adia), and Kotak Alternative Investment Fund (Kotak AIF), to develop residential properties in India.
The estimated development value of the projects is $2.16 billion.
Indian Prestige Real Estate Development Bonds
Shobhit Agarwal, CEO of the Capital Markets Department at Anarock Real Estate Consulting Group, said that investors (Abu Dhabi Investment Authority, and Kotak Alternative Investment Fund) will have optionally convertible bonds and non-convertible bonds as part of the agreement, with Indian real estate developer Prestige.
Debt securities are long-term debt instruments that are not backed by any form of collateral.
The “non-convertible” part means that the bonds cannot be converted into equity shares.
The four new projects are in Mumbai, Bengaluru, Goa and the National Capital Region of Delhi, Prestige Group said in a statement to the Bombay Stock Exchange, where its shares are traded.
The company did not reveal the timetable for the projects, but said that the deal aims to “stimulate the development of residential projects in the early stages,” to help them expand and drive growth.
Abu Dhabi Investment Authority investments in India
And longer Abu Dhabi Investment Authority (Adia), the largest sovereign wealth fund in the Gulf, and the fourth largest fund in the world, with assets estimated at approximately $993 billion (equivalent to 320% of the gross domestic product of the Emirate of Abu Dhabi), according to the credit rating agency “DBRS Morningstar” in the year. Past citing data from SWF Global Fund.
Abu Dhabi Investment Authority’s (Adia) other investments in India include $500 million in Lenskart, an online eyewear retailer, as well as investments in Reliance Industries’ Digital Fiber Infrastructure Trust and Reliance Retail Ventures.
Housing demand in India
Irfan Razzaq, Chairman and Managing Director of Prestige Group, said: “We are pleased to partner with Abu Dhabi Investment Authority (Adia) and Kotak Alternative Investment Fund (Kotak AIF), two world-renowned sovereign investors with a proven track record of promoting sustainable growth across diverse industries.”
Demand for housing in India, Asia’s third-largest economy, remains strong, with prices in the eight largest cities rising by about 20% in the past two years, according to a recent report by Crediti, Colliers, and Liaison Foras.
The report said that Bengaluru, Delhi NCR and Kolkata recorded the highest rise in average house prices of about 30% in 2023 compared to 2021 levels, supported by “a notable rise in demand for housing, especially in the mid-range and luxury segments.”
Other cities including Ahmedabad, Chennai, Mumbai Metropolitan Region, Pune and Hyderabad also recorded strong price growth amid continued demand from buyers.
“Looking to 2024, the market is well positioned to maintain its current trajectory, with the mid-range and luxury segments expected to thrive further, offering lucrative opportunities for investors and homebuyers alike,” said Badal Yagnik, CEO, Colliers (India).
