GIC to increase stake in Bengaluru developer Prestige Estates
Photo Credit: Reuters

Singapore sovereign wealth fund GIC Pte Ltd will increase its stake in Bengaluru developer Prestige Estates Projects Ltd for Rs 430 crore ($60.41 million).

GIC, through unit Gamnat Pte Ltd, will buy 13.4 million shares at Rs 323 apiece through a preferential allotment, Prestige said in a stock market notification.

GIC already owns about 16.33 million shares, or a 4.36% stake, in the company. This stake is worth Rs 565 crore based on Prestige’s closing share price of Rs 345.60 apiece on Monday.

The Singapore firm has been an investor in Prestige since 2010 when the developer went public. It had previously increased its stake in 2015.

The fresh purchase comes a year after GIC's proposed deal with Prestige for a stake in its rental arm fell through.

Prestige has been working on bringing an investor on board for its rental arm for the last few years. It has streamlined its assets over the last few years and given exit to many investors including Red Fort Capital and CapitaLand. 

In the second quarter of the current financial year, the company clocked revenue of Rs 1,962 crore and profit after tax of Rs 157 crore, registering a growth of 8% quarter on quarter. 

The company has a presence across commercial, residential, retail and hospitality segments. It also offers property management services.

Prestige has completed 236 projects with a developable area of 123 mn sq ft and has 48 ongoing projects across segments with total area of 48 mn sq ft.

GIC has been a long-term investor in the real estate market of India. It has investments worth over $4.5 billion in the country across residential, commercial and retail assets. Its portfolio includes developers such as Godrej Properties Ltd and Anant Raj. Last year, GIC struck a $1.4 billion deal with DLF Ltd for a stake in its rental arm. 

Recently, it sold its stake in office project WaveRock in Hyderabad to a platform of Allianz Real estate and Shapoorji Pallonji Group for $250 million. 

Also read: Realty Scan: How GIC is aiming for a bullseye in India by spreading its bets around

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