Prestige Group, Real Estate firm has bought land of 14 acres in Hyderabad’s Kokapet area for Rs 200 crore that will be built as a mixed-use development project, said a top company executive. The Bengaluru-based developer will build around 1.6 million sq ft of mid-income homes as part of the residential project and another 1.8 million sq ft of commercial office space.
“The company already has a strong presence in Hyderabad and we plan to strengthen that,” said Prestige chief executive Venkat K. Narayana.
Hyderabad comprises around 16 per cent of Prestige’s ongoing project portfolio, second only to Bengaluru, which is at 66 per cent. The Hyderabad property market has been performing well, despite the slowdown and the liquidity challenges. The southern city has the least unsold inventory among the top seven cities at around 23,890 units as of September 2019, compared to 27,000 units a year ago, as per data by Anarock Property Consultants.
“Prestige’s net debt rose by around Rs 350 crore quarter-on-quarter to Rs 8470 crore mainly owing to the land acquisition in Hyderabad for Rs 200 crore and other balance payments towards stake acquisitions in projects. While the rise in debt levels is a cause for concern, it is cushioned by operational annuity assets and which will have exit rental income of Rs 960-1000 crore by March 2020 and Rs 3000 crore of completed inventory in its residential projects,” said Adhidev Chattopadhyay, ICICI Securities Ltd.