Indian property development company Prestige Estates Projects Ltd. will be taking over a Mumbai housing project from the bankrupt Ariisto Developers Pvt. following a court decision on Tuesday. The Bangalore-based firm already plans to launch the first phase of the housing project by May this year, while the second phase is expected to commence during the latter stages of 2021. This project will see the development of 7.5 million square feet of property.
According to Prestige’s Chief Executive Officer Venkat K. Narayana, estimated earnings for the project exceed 100 billion rupees ($1.4 billion). “This will be our largest project in Mumbai,” Narayana claimed during a telephone conversation on Wednesday.
Following the announcement of its acquisition of the housing project, Prestige’s shares have risen by 3.8% to offset previous losses. Prestige was trading up 1.8% in Mumbai on Wednesday while the benchmark index had slipped by 1.2%.
The property development company first decided to make a move for the Mumbai-based housing project in November 2019, quickly emerging as a top bidder before the proceedings were dismissed in court. After this, the outbreak of the coronavirus pandemic brought delays to any further proceedings.
