Prestige & Brigade JV for Mall-Cum-Hotel

Bengaluru-based developers Prestige Estates and Brigade group have partnered to develop a shopping mall and a hotel in Chennai at a cost of around Rs 500 crore. The two leading developers have jointly taken 7.5 acre land on 99 year lease in Chennai. "Prestige and Brigade group have joined together to develop one million sq ft area in this project. It will have a shopping mall and a small hotel of around 125 keys in this project," Prestige group Chairman and Managing Director Irfan Razack told. He said Prestige group will have 70 percent shareholding in the project while Brigade will have 30 percent stake. On Tuesday, Prestige Estates informed exchanges that it has entered into a Limited Liability Partnership agreement (LLP) with Mysore Projects Pvt Ltd, a wholly owned subsidiary of Brigade Enterprises Ltd in Prestige OMR Ventures LLP. Razack said the construction work will start after taking all the necessary approvals. Both the partners will make equity investments as well as raise debt to develop this premium commercial project. The deal is expected to be closed by end of the next month after all the necessary approvals including that of the Competition Commission of India (CCI), sources said. The total office, retail and hotel assets to be monetised through this deal could be 15-20 million sq ft both completed and under construction.