Prestige Hospitality Arm Raises ₹3,000 Cr from CPPIB

Realty firm Prestige Estates Projects Ltd on Tuesday said its hospitality arm has raised Rs 3,000 crore from Canada Pension Plan Investment Board (CPPIB) by diluting a 27 per cent stake.

In August this year, Prestige Estates had announced that Canada-based investment firm CPPIB will invest up to Rs 3,000 crore in its hospitality arm. The company, CPPIB, and Prestige Hospitality Ventures Ltd (PHVL) executed a binding framework agreement.

In a regulatory filing on Tuesday, Prestige Estates informed that the CPPIB has invested Rs 3,000 crore (Canadian dollars 441 million) in PHVL. Through the investment, the CPPIB would acquire about a 27 per cent stake in PHVL.

Recently, Prestige Estates shelved plans to launch an initial public offering of PHVL because of uncertain market conditions and some other factors.

The majority of the capital would support the platform's continued expansion, Prestige Estates said. This marks CPP Investments' first direct investment in India's hospitality sector.

PHVL owns a portfolio of luxury and premium hotels in key cities across India. It is developing many hotels in Bengaluru, Chennai, Delhi, Goa, Hyderabad, and Mumbai.

By Rediff Money Desk, New Delhi