Prestige Group, one of the leading real estate firms has bought 14 acres of land for 200 crore in Hyderabad’s Kokapet area, to be built as a mixed-use development project, said a top company executive.
As part of the residential project, the Bengaluru-based developer will build around 1.6 million sq ft of mid-income homes, other than building another 1.8 million sq ft of commercial office space.
Talking about the development, the chief executive of Prestige Group, Venkat K. Narayana said, “The company already has strong presence in Hyderabad and we plan to strengthen that.”
Second only to Bengaluru, Hyderabad comprises around 16 percent of Prestige’s ongoing project portfolio. Despite the slowdown and the liquidity challenges, the Hyderabad property market has been performing well. Compared to 27,000 units a year ago, the southern city has the least unsold inventory among the top seven cities at around 23,890 units as of September, 2019, as per the data released by Anarock Property Consultants.
Adhidev Chattopadhyay, the research analyst of ICICI Securities Ltd said, “Prestige’s net debt rose by around 350 crore quarter-on-quarter to 8470 crore mainly owing to the land acquisition in Hyderabad for 200 crore and other balance payments towards stake acquisitions in projects. While the rise in debt levels is a cause for concern, it is cushioned by operational annuity assets and which will have exit rental income of 960-1000 crore by March, 2020 and 3000 crore of completed inventory in its residential projects.”
In a bid to develop a mixed-use project spread across 7.7 acres in Delhi’s Aerocity, Prestige and real estate firm DB Realty Ltd entered into a 50:50 joint venture in October. Prestige has already launched 7.88 million sq ft of residential, office and retail projects in 2019-20 and has a pipeline of 18.9 million sq ft of upcoming launches across cities such as Bengaluru, Noida, Mumbai, and Hyderabad.