Prestige Group in Advanced Talks for Joint Development in Lutyens’ Delhi

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    Prestige Group, a major player in the real estate industry based in Bengaluru, is currently engaged in advanced negotiations with TDI Infratech regarding a possible joint development agreement. The focus of this collaboration is a substantial 5,100 square-yard residential property situated in the prestigious Lutyens’ Delhi.

    Owned by TDI Infratech, this prime real estate asset commands a remarkable market value of ₹325-350 crore and is estimated to have a revenue potential of ₹700 crore, according to insiders. If successful, this project could mark Prestige Group’s entry into Delhi’s residential real estate market, signifying a significant strategic move.

    Prestige Group has taken the initial step by signing a term sheet with TDI Infratech, with the negotiation process now progressing towards the critical phase of legal due diligence before finalizing the joint development agreement.

    The current plan leans towards developing eight to nine boutique apartments on the property, though this presents challenges due to restrictions on high-rise construction in Lutyens’ Bungalow Zone. However, there are provisions for specific high-rise structures in the area, potentially favoring the project.

    Part of the financial arrangement includes Prestige Group taking responsibility for clearing an existing loan of approximately ₹225 crore associated with the property, which could significantly impact the project’s financial dynamics. The agreement would also entail revenue sharing between Prestige Group and TDI Infratech, with specific terms yet to be disclosed.

    Despite substantial progress in negotiations, both parties remain cautious and have refrained from making conclusive statements. Ravindra Taneja, Chairman of TDI Infratech, stated, “As of now, nothing conclusive has been done. We are still in talks.”

    Prestige Group has been actively expanding its presence in the residential real estate market. They are currently engaged in a significant 2.2 million-square-foot residential project in Noida Sector 150 and are actively seeking land parcels in Delhi and Gurgaon to strengthen their presence in these markets.

    Prestige Group is known for its commitment to quality and innovation, particularly in the luxury segment with properties valued at over ₹7 crore. Their extensive portfolio includes 285 successfully completed projects covering a vast developable area of 170 million square feet. Presently, they manage 54 ongoing projects spanning various segments, with a total developable area of 75 million square feet.

    The company has ambitious plans for the future, with preparations underway for 44 projects covering an impressive 99 million square feet. Additionally, Prestige Group holds a substantial land bank of approximately 680 acres as of July and operates in 13 cities across India.

    This potential joint venture between Prestige Group and TDI Infratech echoes a previous agreement. Godrej Properties previously partnered with TDI Infratech to develop an ultra-luxury residential project near Connaught Place, a prime location in central Delhi. This venture featured 46 ultra-luxury apartments and gained approval for a nine-story tower.

    Lutyens’ Delhi, located in the heart of the nation’s capital, is one of the most elite and sought-after areas in the country. It is synonymous with political prominence and is home to influential politicians and business leaders. Property transactions in this area are relatively rare, primarily because a significant portion of its 26 square-kilometer expanse is owned by the government.

    In summary, Prestige Group’s potential joint venture with TDI Infratech in Lutyens’ Delhi presents a significant development in the real estate landscape. Successful negotiations could mark a crucial milestone in Prestige Group’s expansion strategy and have a lasting impact on the Delhi residential market. Updates on this collaboration will be closely monitored as it has the potential to reshape the residential real estate scene in Lutyens’ Delhi.

    Also read: South India-Based Prestige Estate Set To Enter NCR Real Estate Market

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