Prestige Estates Projects Ltd has collaborated with Mumbai-based DB Group for a mixed-development project comprising a large hotel and convention centre in Delhi at a total investment of around Rs2,000 crore.
The 3.5 million mixed-development project would be built over 7.70 acre at Aerocity in Delhi. It would house one of India’s largest hotels with around 932 keys, a convention facility of over 200,000 sqft, and an office space of around 650,000 sqft.
DB Group acquired the development rights of the land in 2009 from Delhi International Airport Limited (DIAL). The project is expected to be completed by 2022.
Both the companies would put in Rs355 crore in the 50:50 JV to develop the project. The rest of the development cost would be raised through bank loans.
The strategic collaborative model will help Prestige Group make an impactful entry into the NCR region. Prestige Group will continue to invest and leverage our expertise to build a wide range of real estate developments across key locations in India.
The company has recently set foot into the National Capital Region market with a mid- income housing project. They are now growing with the mixed-use development.
Property consultant JLL India was the transaction advisor to the deal. Once the project is operational and stabilized, the hotel and the convention centre is expected to register net operating income (NOI) of Rs.300 crore and the office space to register NOI of Rs. 170 crore.