Exora Business Park Final Talks
Prestige Estate Project has had its talks to get Red Fort Capital of 62% investment in Exora Business Park in Bangalore. This 62% may be about Rs.1,300 crore to Rs.1,500 crore. This real estate dealing will be the biggest in commercial business.
Prestige Estate Project reported in Bombay Stock Exchange that it has entered into the final talks with Red Fort and deciding the terms and conditions. If everything works out well there may be a final agreement between them. A letter of the same has been submitted to Red Fort Capital to get into this deal. The talks may reach the final deal and if so Prestige Estate Project may own the business park.
A report from Economic Times said that the dealing would be on June 5th.The prime office was made by both Red fort Capital and Prestige Estate Project. The later has put 38% stake in the property already. The business park is located in Marathhalli and is of area of about 22 acres. There is lot of amenities nearby and the area is developed in the recent years.There are many companies also giving the competition in buying the stakes like Xander Group, Canada Pension Fund, GIC Singapore, Morgan Stanley, Brookefield Asset Management and many others.
The business park is having three buildings. The built up area is about 3 million square feet. The leasable area is about 2.12 million sq.ft. In the building there are companies like JP Morgan Chase, Juniper Networks, Schneider Electric, Misys, Price water house coopers, Verizon and Xerox.
Red Fort Capital is a company which is a private equity fund. This fund is on Indian real estate and is about $ 1 billion. The company was looking for all types of investments so that it can bring the whole investment into one trust, in Singapore. But there was delay in the move and the company wanted to en- cash the investment from the project. Red Fort Capital also has stake in Red Fort Towers in New Delhi other than Exora. So it is trying to get into a deal with Prestige.
The Indian Real Estate agents are leveraged due to the sudden cash flow but there is more demand for foreign investments in India. Hindustan Construction Company sold the stake of about 26% in Corporate Park to Blackstone. This deal was said to be of a value of Rs.1,000 crore. There are many other companies also putting their investment into many states in the country. The rules of the country are relaxed for the foreign investors to start companies in India.
In 2014 there was rush of companies trying to invest in India. India was one of the 20 top destinations in that year. Cushman& wakefield, real estate consultants say that the investments was about 5 billion. When compared to 2013 the total investment raised to 140% which was the third highest growth in economy of the country record. The foreign investors find India for lesser investments with good profit. The labour is also less and thus they can reap good profit.