Prestige Estates Transfers Assets, Shares Worth Rs 313 Crore To Hospitality Subsidiary

Prestige Estates Projects Ltd. has signed a business transfer agreement with a wholly owned subsidiary for assets and shares worth Rs 313 crore, according to an exchange filing on Friday.

The transfer to Prestige Hospitality Ventures Ltd. is to be completed within 90 days. Through the transfer agreement, the company is consolidating the hospitality assets under a single vertical, it said.

The company is transferring Mulberry Shades Bengaluru Nandi Hills and an underlying land along with all rights at Moxy Outer Ring Road. The transfer agreement also includes 57.45% shares of Prestige Leisure Resorts Pvt., the company added.

In this financial year, the company expects to achieve its sales guidance of Rs 24,000 crore on the back of new project launches and rising customer demand, Irfan Razack, chairperson of Prestige Group, had told NDTV Profit.

Razack said that while the first half of the ongoing fiscal had been muted against the guided numbers, the second half will look a lot better. He added that there is demand from customers in the retail real estate market.

Shares of Prestige Estates Projects fell as much as 1.23% during the day to Rs 1,730.30 apiece on the National Stock Exchange. The stock closed 0.04% higher at Rs 1,752.50 per share, compared to a 0.27% advance in the benchmark Nifty. The share price has risen 47.43% on a year-to-date basis.

Sixteen out of the 20 analysts tracking the company have a 'buy' rating on the stock and four suggest 'sell', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 9.5%.