Prestige Group has picked up 28.99% stake in commercial development of a DB Realty project. The property in Mumbai’s Bandra locality has a development potential of over 7 lakh sq ft and is valued at about ₹2,100 crore, The Economic Times reported citing two persons familiar with the development.
The joint venture entity will develop a mixed-use project with total 200 hotel rooms, while the rest will be office space. The deal marks Bengaluru-based Prestige Estates Projects’ entry into the Mumbai commercial market. The transaction is yet to be completed, including the final development potential. This is the second transaction between Prestige and DB Realty. Last month, the Bengaluru-headquartered firm had entered in to a JV with DB Realty to develop a hospitality-led mixed use project spread over 7.7 acres land parcel in Delhi’s Aerocity. Prestige Group is planning to build India’s largest hotel and convention centre on the same land parcel. Following the acquisition of the shares by the developer, the total shareholding of the company in DB BKC will increase to 66.35% to total share capital of DB BKC. The company holds convertible instruments that it may convert in the course of time.