HDFC PE-Temasek eyes Prestige
The Economic Times, September 9, 2009, Page 1
Deal May Be Delayed As Bangalore-Based Realtor Seeks $1-B Valuation
Boby Kurian & George Smith Alexander BANGALORE MUMBAI
HDFC Property Ventures and Temasek are in talks to invest about Rs 625 crore ($130 million) in Prestige Estates Projects, the holding entity of Bangalore-headquartered Prestige Group, as cash-hungry real estate companies continue to tap private equity funds to meet critical funding needs.
People close to the transaction said HDFC’s real estate fund, along with Singapore’s Temasek, is in discussions with Prestige, which is seeking a valuation of $1 billion for its business. But the deal could take some time to fructify as both sides need to iron out a number of issues, including pricing.
“Pricing of the deal remains a hiccup even as talks are very active,” one source added. Prestige Estates is seeking a valuation of about $1 billion. It is not clear if Temasek and HDFC are willing to do a deal at that price. They may look at something between $800 million and just under $1 billion.
The two funds may jointly pick up a little over 15% stake in Prestige Estates Projects, the people mentioned earlier said.
“Pricing is the only issue left between the company and these funds. The company is also keeping the option of hitting the IPO market for raising funds,” said one official close to the transaction.
Temasek and HDFC declined to comment. Repeated attempts to contact Prestige CMD Irfan Razack over the weekend did not fructify. Phone calls and messages left with another company official also failed to elicit any response. However, Mr Razack had denied talks with private equity funds when ETcontacted him a week ago.
The Economic Times, September 9, 2009, Page 1
Deal May Be Delayed As Bangalore-Based Realtor Seeks $1-B Valuation
Boby Kurian & George Smith Alexander BANGALORE MUMBAI
HDFC Property Ventures and Temasek are in talks to invest about Rs 625 crore ($130 million) in Prestige Estates Projects, the holding entity of Bangalore-headquartered Prestige Group, as cash-hungry real estate companies continue to tap private equity funds to meet critical funding needs.
People close to the transaction said HDFC’s real estate fund, along with Singapore’s Temasek, is in discussions with Prestige, which is seeking a valuation of $1 billion for its business. But the deal could take some time to fructify as both sides need to iron out a number of issues, including pricing.
“Pricing of the deal remains a hiccup even as talks are very active,” one source added. Prestige Estates is seeking a valuation of about $1 billion. It is not clear if Temasek and HDFC are willing to do a deal at that price. They may look at something between $800 million and just under $1 billion.
The two funds may jointly pick up a little over 15% stake in Prestige Estates Projects, the people mentioned earlier said.
“Pricing is the only issue left between the company and these funds. The company is also keeping the option of hitting the IPO market for raising funds,” said one official close to the transaction.
Temasek and HDFC declined to comment. Repeated attempts to contact Prestige CMD Irfan Razack over the weekend did not fructify. Phone calls and messages left with another company official also failed to elicit any response. However, Mr Razack had denied talks with private equity funds when ETcontacted him a week ago.
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