Prestige Estates Launches ₹5,000-Cr QIP for Debt Reduction and Asset Acquisition
Prestige Estates' Strategic Financial Moves
Prestige Estates Projects has announced plans to harness ₹5,000 crore raised via qualified institutional placement (QIP) primarily for debt reduction and funding land acquisitions. Chairman and Managing Director Irfan Razack revealed that around ₹1,500 crore will be directed towards minimizing debt obligations while approximately ₹1,750 crore will focus on enhancing their land bank.
Future Growth and Financial Goals
The remaining funds will facilitate equity contributions towards capital expenditure projects and general corporate purposes. The firm is positioning itself for significant growth, aiming to invest ₹16,000 crore and achieve sales of ₹50,000 crore in residential assets over the next five years. With high projections, the firm anticipates exit rental income from its office and retail segments to grow over fourfold by FY28.
- QIP Plans: ₹5,000 crore raised for strategic use.
- Debt Management: Targeting ₹900 crore debt reduction.
- Expansion Goals: Over 50 million square feet of projects annually planned.
Hospitality and Future Endeavors
With aspirations of enhancing their hospitality portfolio, Prestige aims to double its current holdings, currently involving 1,489 keys under brands like Hilton and Marriott. Furthermore, plans for a potential initial public offering (IPO) for their hospitality segment and consideration of a REIT listing are in progress, contingent upon board approvals.
- Revenue target from hotel segment: ₹2,000 crore.
- Key hospitality markets: Srinagar, Ayodhya, Goa, and Mumbai.
- Real estate development: 140 million sq ft residential projects.
Prestige Estates is committed to leveraging the opportunities arising from its recent financial maneuvers, ensuring robust growth and strategic expansion.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.