Prestige Estates Projects rose 1.79% to Rs 289.95 after the company said its subsidiary will invest in DB Group's hotel project in Delhi.
Prestige Estates Projects (Prestige) will invest alongside DB Group into building India's one of the largest Hotel and Convention Centre at DIAL Aero City in Delhi. The total investment is to the tune of Rs 2,000 crore, which is the balance required to complete the project and Prestige will bring in Rs 355 crore for 50% equity stake in the joint venture.DB Group had acquired the development rights on the 7.70 acre land parcel in 2009 from Delhi International Airport. The excavation work on the project land has been completed and the proposed time to complete this project is by 2022.
The project spread across 7.70 acres land, abutting the existing JW Marriot Hotel. It will be India's one of the largest hotel with about 932 keys, a convention facility of over 2,00,000 sqft (20,000 seat capacity) and office spaces with business centre of about 650,000 sqft. The development will have a total built-up area of about 3.5 million sqft in the Hospitality District of Indira Gandhi International Airport, New Delhi. The companies have executed the agreement on 1 October 2019. The announcement was made after market hours on Tuesday, 1 October 2019.
Shares of Prestige Estates Projects declined 2.74% in the past three trading sessions to settle at Rs 284.85 on Tuesday, 1 October 2019, from its close of Rs 292.90 on 26 September 2019.
Meanwhile, the S&P BSE Sensex was down 144 points or 0.38% to 38,160.93.
On the BSE, 3,721 shares were traded in the counter so far compared with average daily volumes of 5,643 shares in the past two weeks. The stock hit an intraday high of Rs 290.70 and an intraday low of Rs 284.40 so far during the day.
The stock hit a 52-week high of Rs 317.05 on 13 September 2019. The stock hit a 52-week low of Rs 163.75 on 11 October 2018.
Prestige Estates Projects' consolidated net profit soared 74.6% to Rs 91.15 crore on 83.8% surge in net sales to Rs 1,538.70 crore in Q1 June 2019 compared with Q1 June 2018.
Prestige Estates Projects is engaged in the business of real estate development which includes development and construction of properties, leasing of commercial properties and share of profit /loss from partnership firm.
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