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Bengaluru-based Prestige Estates Projects Ltd, along with DB Group, plans to build a ₹2,000-crore hotel and convention centre at the Aero City in Delhi.
The project will require an investment of about ₹2,000 crore. Prestige is expected to bring in ₹355 crore for a 50 per cent equity stake in the joint venture.
DB Group had acquired the development rights on the 7.7-acre land parcel in 2009 from Delhi International Airport Ltd (DIAL). The excavation work has been completed and the project is scheduled to be completed by 2022.
Commenting on the alliance, Irfan Razack, Chairman, Prestige Group, said: “This strategic collaborative model will help us make an impactful entry into the NCR region. We will continue to invest and leverage our expertise to build a wide range of real estate developments across key locations in India.”
NCR market entry
“This transaction is in line with our strategy of steady, focused acquisition, and capitalising on consolidation opportunities. Having recently set our foot into the NCR market with a mid-income housing project, we are now growing with this mixed use development, which is the next in line. We look forward to bringing our brand and culture of care to this city,” he added.
The joint venture will develop a hotel with about 932 keys, a convention facility of over 2 lakh sq ft and 20,000 seat capacity, and office spaces with a business centre of about 6.5 lakh sq feet. The development will have a total built-up area of about 35 lakh sq feet in the hospitality district of Indira Gandhi International Airport. The companies executed the agreement on Tuesday. The transaction was brokered by JLL India’s Executive MD, Juggy Marwaha.
Venkat K Narayana, Chief Executive Officer, Prestige Group, said: “This transaction retains a great deal of upside potential for all the stakeholders. Once operational and stabilised, the hotel and the convention centre are expected to register NOI (net operating income) of ₹300 crore and the office space to register NOI of ₹170 crore. Currently, the group has eight operating luxury hotels with 1,262 keys and 297 keys under construction. The addition of this new asset with 932 keys will further strengthen our hospitality business, making it a 2,491 keys portfolio.”
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