ICRA

Bengaluru-based developer Prestige Projects Pvt Ltd has purchased a prime piece of land parcel spread over 2.3 acres next to SK Patil Park on Maharshi Karve Road in Marine Lines for ₹704 crore. The listed developer purchased the 9,309 sq m plot, which housed an old petrol pump, a municipal office, and a parking lot from Marine Drive Hospitality and Realty Pvt Ltd (MDHRPL), a subsidiary of DB Realty.

Prestige Group buys 2.3-acre land for ₹704 crore

Prestige Estates Projects Ltd, a leading real estate development company, completes 2 strategic acquisitions to attain full ownership of Prestige (BKC) Realtors Private Limited and Turf Estate Joint Venture LLP by acquiring balance stake from DB Group.

Prestige Group acquires Prestige (BKC) and Turf Estate Joint Venture for ₹1176 cr

Prestige Estates Projects Ltd has posted 70 per cent decline in consolidated net profit at Rs 140 crore for the quarter ended March 2024 on lower income. Its net profit stood at Rs 468.4 crore in the year-ago period. During 2023-24 fiscal year, net profit rose to Rs 1,374.1 crore from Rs 941.8 crore in the preceding year. Total income increased to Rs 9,425.3 crore from Rs 8,772 crore. Prestige Estates is one of the leading real estate developers in the country. It has a significant presence in South India. The company has entered into Mumbai and Delhi-NCR markets.Last month, Prestige Estates reported 63 per cent annual increase in sales booking for the last financial year at record Rs 21,040 crore on strong demand for its residential properties and higher average sales realisation. The company's sales bookings stood at Rs 12,931 crore in 2022-23. Prestige Estates attained the highest-ever annual collections of Rs 11,954 crore in FY24, a growth of 22 percent year-on-year (YoY).

Prestige Estates Q4 Results: Profit plunges 70% YoY to Rs 140 crore

PPPL has a significant launch pipeline of 9.71 msf (PPPL’s share) for FY2024, which exposes it to execution and market risks.s. It is further exposed to the residual execution risk for the ongoing projects.


The company remains vulnerable to the inherent risks of the real estate sector, such as susceptibility to declining property prices, a slowdown in economy and reduction in housing demand. 


The issuer has made timely interest payments.

 Venkat K. Narayana, Chief Executive Officer

With an established track record in real estate business PPPL is a subsidiary of PEPL which is a part the Prestige Group.The parent to provide timely financial support to PPPL, for funding shortfall, if any, given PPPL’s strategic importance and PEPL’s reputation sensitivity to default.

The sales response for the project has been healthy. Also, one of the recently launched projects, Prestige Park Grove with a saleable area of 5.78 msf in Bengaluru, has received strong response from the market with 5.25 msf (91% sold) within 6 months of launch. As on December 31, 2023, it sold 87% of the saleable area of the ongoing projects, i.e., 17 msf. PPPL’s cash flow adequacy cover remained healthy with committed receivables/ (pending construction cost + debt outstanding) of 78% as on December 31, 2023. 


11.75%Prestige Projects Private Limited 05 Mar 2027

ISIN:

INE757O07049

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Recent News

Prestige Group buys 2.3-acre land for ₹704 crore

Prestige Group acquires Prestige (BKC) and Turf Estate Joint Venture for ₹1176 cr

Prestige Estates Q4 Results: Profit plunges 70% YoY to Rs 140 crore

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