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Bangalore-based real estate developer Prestige Group is in the final stages of securing INR 1,050 crore from multiple lenders, led by Kotak Mahindra Bank, at an interest rate of 10.81% to refinance expensive borrowing from Yes Bank. The funding will be raised at Bamboo Hotel and Global Centre (Delhi) (BHGCPL), a joint venture between Prestige Group and DB Realty, which is currently developing a large-scale mixed-use project in New Delhi's Aerocity. BHGCPL has been experiencing financial constraints, with only INR 51 crore in unencumbered cash against pending costs of INR 2,074 crore. The shortfall is expected to be covered through new debt, receivables, tenant security deposits, and promoter contributions.
Prestige Group, a Bangalore-based real estate developer, is in the final stages of securing INR 1,050 crore from a consortium of lenders, led by Kotak Mahindra Bank, at an interest rate of 10.81%. The funds will be utilised to refinance existing high-cost borrowings from Yes Bank. The company is currently engaged in developing a project in New Delhi's Aerocity. Advertisement
The secured debt facility, with a three-year tenure maturing in early 2028, is being raised for Bamboo Hotel and Global Centre (Delhi) (BHGCPL), a joint venture between Prestige Group and DB Realty. This venture is responsible for developing a large-scale mixed-use project in Aerocity, New Delhi.
BHGCPL has encountered financial challenges in completing the Aerocity project. As of late 2024, the company held just INR 51 crore in unencumbered cash, while it required INR 2,074 crore to cover outstanding expenses, according to an ICRA report.
To bridge this funding gap, the company plans to secure INR 1,020 crore in fresh debt, INR 57 crore from receivables due from Delhi International Airport Ltd. (DIAL), INR 25 crore in tenant security deposits, and contributions from promoters.
Originally established by DB Realty in 2008 as Heaven Star Realty, the company is now known as DB Hotels (India). Prestige Group acquired a 50% stake in the venture during the 2020 financial year.
The Aerocity project comprises two luxury hotels-St. Regis with 189 rooms and Marriott Marquis with 590 rooms-alongside a 0.3 million sq. ft. conference centre and 0.61 million sq. ft. of office space under the Prestige Trade Centre brand. The total project cost is estimated at INR 5,400 crore, financed through 46% debt, 51% promoter equity, and 3% from receivables and tenant security deposits.
Prestige Estates is among the country's leading real estate developers. According to its latest investor presentation, the company sold 8.09 million sq. ft. (80.9 lakh sq. ft.) at an average sales realisation of INR 13,128 per sq. ft. during the first nine months of the 2024-25 fiscal year. The total number of units sold was 3,618, with sales valued at INR 10,065.7 crore and customer collections amounting to INR 8,910.9 crore.
Despite a decline in total sales bookings in the first nine months of FY25, Prestige Estates remains optimistic about achieving INR 24,000 crore in pre-sales for the entire fiscal year. In the 2023-24 financial year, the company recorded a 63% year-on-year increase in sales bookings, reaching a record INR 21,040 crore compared to INR 12,931 crore in the previous year.
Prestige Group operates across multiple real estate segments, including residential, commercial, retail, hospitality, property management, and warehousing, with a presence in over 13 major locations across India.
To date, the group has completed 302 projects covering a developable area of 193 million sq. ft. Additionally, Prestige Group has 59 ongoing projects spanning 101 million sq. ft. and 65 planned projects across 96 million sq. ft.
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