HDFC Property Ventures is currently in discussions with Temasek to invest around Rs 625 crore in Prestige Group, which is based in Bangalore, as real estate companies facing financial pressures continue to seek private equity funding to satisfy urgent capital needs.
The real estate fund from HDFC, together with Singapore’s Temasek, is negotiating with Prestige, which is aiming for a business valuation of approximately $1 billion. However, progress on the deal may be delayed as both parties must resolve numerous details, particularly regarding pricing agreements.
Prestige Estates is targeting a valuation in the vicinity of $1 billion. Yet, it remains uncertain whether Temasek and HDFC are prepared to close a deal at that figure; they may consider a range between $800 million and slightly less than $1 billion.
Both funds could potentially acquire just over a 15% stake in Prestige Estates Projects, thus appraising the parent entity of this southern real estate powerhouse at a value between $800 million and $1 billion.