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BLACKSTONE MAY BE TOP BIDDER FOR PRESTIGE BIZ
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| BLACKSTONE MAY BE TOP BIDDER FOR PRESTIGE BIZ |
| 03.03.09 (4:02 am) [edit] |
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Blackstone has offered around Rs 230-240 crore to buy out southern realty major Prestige Group's serviced apartment business managed by the international luxury hospitality brand Oakwood.
The private equity giant's proposal, which is still in the early stages, falls below Prestige's asking valuation of Rs 300 crore, at least two people close to the development said. However, Blackstone may have merged as the top bidder for the 177 key serviced apartment asset located at UB City in Bangalore's central business district. ET could not confirm this independently. When contacted, a senior Blackstone official said the firm will not comment on any specific deals.
Oakwood Premier Prestige, a full service five star one-to-three bedroom property, became operational in the last quarter of 2008. Oakwood has three properties in India currently, Pune and Mumbai are the other locations. Sources said a Hong Kong based fund as well as domestic financial investors like Kotak have also looked into the potential deal. An official with Kotak private equity said the firm did show early interest but has decided not to proceed with it. Senior officials at Prestige Group could not be reached at the time of going to press. Earlier media reports had indicated that the Bangalore headquartered realty player has put a few of its projects on the block to unlock liquidity. Prestige is a joint venture partner with UB Group in the 1.5 million sqft mixed use development in UB City where Oakwood is located.
One banking source said a deal looked uncertain as most potential buyers were looking at bargain valuation given the market conditions. It is believed that Prestige was looking at Rs 350 crore valuation in the beginning, but has now decided to settle for at least Rs 300 crore still higher than all the offers on the table at present. The 50 year-old Oakwood Worldwide has 23,000 residences at over 4000 locations offering complete housing solutions to mainly corporate travelers globally.
Courtesy:- ET Dtd:- 20-02-09
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