Prestige to buyout partners in Bengaluru proj for Rs 600 cr

Realty firm Prestige Estates will buy-back the securities held by Red Fort and Varidge Ventures in its project Exora Business Park at Bengaluru for about Rs 600 crore, thereby allowing the foreign investors to exit.
In a regulatory filing, Prestige Estates Projects Ltd today said its subsidiary Valdel is proposing to purchase about 100 per cent of the securities held by Red Fort India Real Estate and Varidge Ventures Ltd in Exora Business Park.
The acquisition of the securities would be completed in one or more tranches by June 30.
The company did not disclose the amount to be invested for acquisition of these shares.

However, sources said Bengaluru-based Prestige Estates has given the exit to Red Fort and Varidge Ventures for about Rs 600 crore.
The two foreign investors had invested Rs 290 crore in the Exora Business Park in various tranches from 2008 onwards, they added.

The transaction will result in one of the largest exits in real estate private equity space.
Exora Business Park comprises of over two million sq ft of fully-leased commercial space and 90 villas, to be sold at an estimated realisation of about Rs 250 crore.
"We have, over the years, worked towards developing this project, deploying investment and expertise. The asset has matured and is completely leased out to marque clients. This acquisition is a strategic decision and will result in increase in asset base and contribute to the company's annuity stream of income," Prestige group CMD Irfan Razack said.

Subhash Bedi Chairman Rising Straits Capital said: "We have been equity partners in this project for more than eight years, and have supported it through the complete development and leasing lifecycle.
"The transaction is an excellent example of value creation through a long term association with a trusted development partner," he said in a statement.
Rising Straits Capital is an investment and asset management firm focusing on investments in Indian real estate and infrastructure.
Bedi, the founder of Rising Straits Capital, also owns the investment manager of the two funds raised by Red Fort Capital which own USD 1 billion of assets across 26 transactions.

The business park has been completely developed and leased to reputed MNC's like JP Morgan, Juniper Networks, LinkedIn, PriceWaterhouse Coopers, Schneider Electric and Bosch.