Prestige Estates goes “Black!”

On Saturday, Prestige Estates announced to the stock exchanges that it has signed a non-binding letter of intent with bigwig PE, Blackstone group to sell a few of its commercial offices, retail and hotel properties.

The news is that the Blackstone is in advanced talks to acquire the company’s  16 to 20 million square feet rent-yielding assets for an estimated value of around Rs.12,000 crore.

Prestige group will utilise the fund raised through this monetisation to partly retire its debt and future expansion.

The company’s consolidated net debt at end of Q1FY21 stood at Rs.8406 crore.

The stock had closed in the green on Friday at Rs.260.50 and today morning, it opened over 3.5% up at Rs.269.80, which was also its intraday high; profit taking at this level has now pushed the stock into the red, trading at Rs.259 levels.