Prestige Estates Projects
Price band Rs 172- 183
South India pure play…
Prestige Estates is a real estate company based in South India with a
diversified portfolio of development across residential, commercial,
retail and hospitality segment. The company has completed 150
projects aggregating 34.2 million sq feet of development with majority
of the projects in Bangalore. The company currently holds the
development right for 57.4 million sq ft (including 28.4 million sq ft of
saleable area and 11 million sq ft of leasable area).
Strong brand and execution track record
Prestige is an established and recognised brand in South India’s
(especially Bangalore) real estate market and has so far completed
150 projects aggregating 34.2 million sq feet of development with
landmark projects such as Prestige Shantiniketan, one of the largest
integrated township development in Bangalore, UB City, one of the
largest mixed use development in Bangalore's central business
district and Forum Mall in Bangalore
Diversified portfolio of projects
Prestige currently has 32 ongoing projects comprising 11 residential
projects (10.9 million sq ft of development), 14 commercial projects
(developable area of 18.3 million sq ft), four hospitality projects (1.3
million sq ft of development) and three retail projects with a
developable area of 3.4 million sq ft. Apart from that, it also has 13
under development and nine forthcoming projects aggregating 23.5
million sq ft. of development.
Concerns
Prestige has disclosed in RHP contingent liability to the tune of Rs
52.4 crore, which has not been provided in the balance sheet. Its
subsidiaries and associate companies have contingent liabilities
totalling Rs 1422 crore. Materialisation of these contingent liabilities
can adversely affect its performance.
Valuations
At the IPO price band of Rs 172-183, Prestige is available at 2.9x Q1FY11
post issue P/BV at the lower price band and 3.0x P/BV Q1FY11 post issue
P/BV at the higher price band.
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