Prestige Group buys 2.3 acres of land in Mumbai for Rs 704 crore

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New Delhi: Prestige Group has bought 2.3 acres of land from DB Realty firm for Rs 704 crore. This land has been bought in Mumbai. Flats will be made here by the company. According to experts, when the land has been bought at such a high cost, then the cost of the flats built on it can be in crores. According to registration documents provided by real estate data analytics firm CRE Matrix, the subsidiary of DB Realty had started developing a residential project on the land, but it was yet to be approved by the Mumbai Municipal Corporation. The company had taken loans on the property from lenders such as Edelweiss Asset Construction, Rare Asset Construction and Edelweiss Finvest. In such a situation, the company has sold the land to repay the loan and reduce its dues. The money thus raised is being used to repay the loan.

Let us tell you that around 20 flats were sold in this project, but the purchase has been canceled and the amount collected has been returned to the flat holders. DB Realty has delayed repayment of bank loans. In a filing to the exchanges last week, the company had listed its total outstanding loans at Rs 1,000 crore.

Last May, Prestige Estates bought DB Realty’s stake in two joint commercial projects in Mumbai for Rs 1,176.5 crore. These projects are in the commercial district of Bandra Kurla Complex and Mahalaxmi.

Prestige Estates entered Mumbai in 2021. Around 21 per cent of the Rs 13,000 crore sales reported in FY23 were from Mumbai. The group is hopeful of more sales going forward in Mumbai. Due to this, Prestige Estates is coming up with two of its projects for launch in Mumbai. It is the next phase of an existing project in Mulund.

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