Prestige Estates Projects Ltd , a leading real estate developer, has announced the launch of 620 residential units in the second phase of its Ghaziabad township project. This new phase, named 'Mayflower', is part of 'The Prestige City, Indirapuram' township and is expected to generate revenue of Rs 2,200.00 crore for the company.

Expansion in Delhi-NCR Market

Prestige Estates entered the Delhi-NCR market in April with the launch of 'The Prestige City, Indirapuram' township. The project, spread across 62.5 acres, has seen significant success:

• First phase: 3,421 units
• Sales value: Rs 9,000.00 crore
• Status: Almost all units sold

Q2 FY2024 Performance Highlights

The company has reported robust performance in the second quarter of the fiscal year 2024:

The H1 FY2024 sales have already surpassed the total sales bookings from the previous fiscal year, indicating strong market demand and the company's solid performance.

Project Portfolio

Prestige Estates has a significant presence in the real estate market:

• Completed projects: 307
• Total area delivered: 199 million sq ft
• Ongoing projects: 132
• Pipeline area: 200 million sq ft

The launch of the 'Mayflower' phase in Ghaziabad and the strong quarterly results demonstrate Prestige Estates' continued growth and expansion strategy in the Indian real estate market, particularly in the Delhi-NCR region.

As the real estate sector in India continues to show resilience and growth, Prestige Estates' performance and expansion plans position it as a key player to watch in the coming quarters.

Prestige Estates Projects Limited , a prominent player in the real estate sector, has taken a significant financial step by issuing a corporate guarantee for its subsidiary, Dollars Hotel and Resorts Private Limited. This move, aimed at securing a substantial loan facility, underscores the company's commitment to supporting its subsidiaries' growth and expansion plans.

Key Details of the Corporate Guarantee

Impact and Implications

The issuance of this corporate guarantee represents a strategic financial decision by Prestige Estates Projects Limited. Here are the key points to consider:

1. Contingent Liability: The company has clarified that this guarantee constitutes a contingent liability. This means that while it doesn't immediately impact the company's financial statements, it represents a potential obligation that may arise in the future.

2. Subsidiary Support: By providing this guarantee, Prestige Estates is demonstrating its commitment to supporting its subsidiary's financial needs, potentially facilitating growth or operational improvements for Dollars Hotel and Resorts Private Limited.

3. Arm's Length Transaction: The company has emphasized that this guarantee was provided on an arm's length basis, in compliance with the applicable provisions of the Companies Act, 2013 and SEBI Listing Regulations. This ensures transparency and fairness in the transaction.

4. No Promoter Interest: Prestige Estates has explicitly stated that the promoter/promoter group has no interest in this transaction, further underlining the professional nature of this financial arrangement.

Regulatory Compliance

The disclosure of this corporate guarantee aligns with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This transparency ensures that shareholders and potential investors are kept informed about significant financial commitments made by the company.

While the immediate financial impact on Prestige Estates Projects Limited is stated to be minimal, stakeholders should monitor future developments related to this guarantee. The performance of Dollars Hotel and Resorts Private Limited and its ability to service the loan will be crucial factors in determining any long-term implications for Prestige Estates.