BENGALURU: Prestige Estates Projects and DB Realty Group will build a hotel-cum-office space at DIAL (Delhi International Airport Ltd) Aero City by investing Rs 2,000 crore.
The two realtors have set up a joint venture, with Prestige bringing in Rs 355 crore as equity stake and DB the balance. The venture will develop the hotel on a 7.7 acre land parcel over 2 million sqft. The hotel will have 932 keys, 0.6 million sqft of office space, and a 0.2 million sqft convention centre.
The deal, structured by JLL India’s Juggy Marwaha, marks the presence of the Bengaluru-based developer in all segments of the Delhi-NCR property market. It has tied up with Ace Group to launch its first housing project in Noida with an investment of around Rs 500 crore on construction.
“This strategic collaborative model will help us make an impactful entry into 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,” Irfan Razack, chairman, Prestige Group, said. The hotel and convention centre are expected to accrue operating income of Rs 300 crore and office space another Rs 170 crore. Prestige has eight operating luxury hotels with 1,262 keys and 297 keys under construction. Two other Bengaluru-based developers, Sobha and Embassy, have also lined up plans to enter the Delhi-NCR market. While Sobha has a residential project in Gurgaon, it targets to have another three in the next four years. Embassy wants to be present both in the residential and commercial spaces and may take its affordable housing brand, Embassy Edge, to the capital by the end of the year. The Rs 2,000-crore deal marks the presence of the Bengaluru-based developer in all segments of the Delhi-NCR market.
February 27, 2020
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