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Chairman Of Prestige Estates Projects Confirms Plans To Launch Maiden REIT

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Irfan Razack, Chairman of Prestige Group reveals that either the company’s commercial or retail portfolio will be its first REIT 

Bengaluru-headquartered Prestige Estates Projects is considering REIT for its income generating assets as its looks to monetise assets.

Prestige Estates’ rental yielding assets are currently valued around Rs 10,000 crore at 8 percent cap rate. The company’s rental income from retail and commercial properties is expected to reach Rs 2,600 crore in the next three-four years from the Rs 927-crore exit rental income at present.

“One way to reduce dependency on debt is to look at REIT and we are working towards it,” said Irfan Razack Chairman Prestige Group. The company is also working towards India’s first retail REIT global investors bullish on developing countries such as India in the backdrop of success of India’s first REIT. “ It can either be office or retail portfolio that will go first for REIT,” said Razack.

Prestige Group has more than 36 million sq. ft. of under-construction and upcoming office properties. It also has six malls in the pipeline in addition to 10 operational retail assets.

“We are in talks with global funds to float over $300-million commercial platform with a development potential of 10-15 million sq. ft.,” said Razack. The fundraising will be a precursor to the REIT listing.

The firm is also looking to expand presence in NCR, Pune and Pune and has recently acquired a 50 percent stake to develop total 2 million sq. ft. project with total 932 hotel rooms, 6.45 lakh sq. ft. office space apart from a 2 lakh sq. ft. convention centre.

Source: ET Realty

(Note: The story has been published without modifications to the text. Only the headline and intro have been changed.)
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