Prestige Estates Projects Limited has made two major acquisitions, increasing its equity stakes in its subsidiary companies.
Acquisition of Prestige Falcon Mumbai Realty Private Limited:
- Prestige Estates Projects Limited has acquired an additional 39% equity stake in its subsidiary, Prestige Falcon Mumbai Realty Private Limited.
- This acquisition raises the company’s total stake in Prestige Falcon Mumbai Realty Private Limited to 90%.
- The acquisition is being made from M/s. Pinnacle Investments, a related party to the promoters of Prestige Estates.
- The transaction is conducted on an arm’s length basis.
- The total consideration for the 39% stake is Rs. 1,890 million, payable in cash.
- Prestige Falcon Mumbai Realty Private Limited, incorporated in 2022, is involved in real estate construction and related activities.
- For the year ending March 31, 2024, the company’s turnover was Rs. 29.768 million.
- The company is currently developing a 2.92 million sq ft residential project.
- The acquisition is expected to be completed by February 28, 2025.
- Shareholder approval for the acquisition was previously obtained.
Acquisition of Prestige Leisure Resorts Private Limited:
- Prestige Hospitality Ventures Limited, a wholly-owned subsidiary of Prestige Estates Projects Limited, has acquired an additional 42.55% equity stake in Prestige Leisure Resorts Private Limited.
- Following this acquisition, Prestige Leisure Resorts Private Limited will become a wholly-owned step-down subsidiary of Prestige Estates Projects Limited.
- The additional stake is being acquired from the promoters and their relatives.
- The transaction is conducted on an arm’s length basis.
- The consideration for the 42.55% stake is Rs. 982.990 million, payable in cash.
- Prestige Leisure Resorts Private Limited, incorporated in 1998, specializes in real estate development for hospitality projects.
- For the year ending March 31, 2024, the company recorded a turnover of Rs. 461.279 million.
- The company currently operates the Angsana Oasis Resort & Spa.
- The acquisition is also expected to be completed by February 28, 2025.
In summary, Prestige Estates Projects Limited is increasing its control over two subsidiary companies through these acquisitions, strengthening their position within the corporate structure. Both acquisitions are expected to conclude by February 2025, with cash consideration for each.