Bengaluru-based Prestige Group is reportedly in the final stages of negotiations with TDI Infratech to establish a joint development agreement for a 5,100 square-yard residential property in Lutyens’ Delhi, according to sources familiar with the matter. TDI Infratech owns this property, which is estimated to have a market value ranging from Rs 325 crore to Rs 350 crore and a revenue potential of approximately Rs 700 crore.
Experts suggest that Prestige Group may consider constructing eight to nine boutique apartments, marking its entry into Delhi’s residential real estate market. While high-rise construction is typically restricted in Lutyens’ Bungalow Zone, this particular area boasts some exceptions, allowing for elevated structures.
An anonymous source with knowledge of the negotiations revealed, “The company has signed a term sheet with the owner and is conducting legal due diligence before signing the final agreement. The revenue from the project will also be shared with TDI Infratech.” It’s worth noting that this property has an outstanding loan of around Rs 225 crore, which Prestige Group is expected to clear as part of the arrangement.
Another source stated, “The joint development will see Prestige invest the money in the construction of a boutique luxury residential development in Lutyens’ Delhi.” However, Ravindra Taneja, Chairman of TDI Infratech, maintained a cautious stance, stating, “As of now, nothing conclusive has been done. We are still in talks.”
Prestige Group has opted to remain tight-lipped about the potential deal. Currently, the company is engaged in an upcoming 2.2 million-square-foot residential project in Noida Sector 150 and is actively searching for land parcels in Delhi and Gurgaon to further expand its residential footprint.
Prestige Group has been channeling its efforts into larger township projects to extend its presence across major Indian markets. Additionally, it maintains a significant presence in the luxury real estate segment, with properties priced at over Rs 7 crore. The group boasts a track record of completing 285 projects spanning a developable area of 170 million square feet and currently has 54 ongoing projects across various segments, with a total developable area of 75 million square feet. Looking ahead, the company is planning 44 projects encompassing 99 million square feet and holds a land bank of approximately 680 acres, as of July, with operations spanning across 13 cities.
This potential joint development venture with TDI Infratech aligns with Prestige Group’s strategy to establish a presence in Delhi’s prestigious real estate market. It’s noteworthy that TDI Infratech previously entered into a similar joint venture agreement with Godrej Properties to develop an ultra-luxury residential project near Connaught Place in central Delhi. The project, situated on Shaheed Bhagat Singh Marg, received approval for a nine-story tower and is expected to feature 46 ultra-luxury apartments.
Lutyens’ Delhi, being a sought-after location in the heart of the capital, is known for its opulence and is home to prominent political figures and business leaders. Property transactions in this area are relatively infrequent due to the significant portion of the locality owned by the government, making any such developments a matter of considerable interest in the real estate sector.
