- PHVL secures $313 million from CPP.
- It marks first India hospitality investment.
- Its pipeline spans six major cities.
The investment combines fresh capital for PHVL with a secondary purchase of existing shares from Prestige Estates Projects. It will receive $99.1 million from the share sale, while PHVL will receive $213.8 million in capital, the company said in a statement.
The capital will be issued through three series of compulsorily convertible preference shares: $57.4 million through Series A, followed by $78.2 million each through Series B and Series C.
“We see compelling opportunities in India’s hospitality sector, driven by rising travel and a demand for quality accommodation,” said Hari Krishna, head of Real Estate India & Mumbai office head at CPP. “This investment offers an opportunity to participate in the sector’s long-term growth through a well-positioned platform, while seeking to generate attractive risk-adjusted returns for CPP contributors and beneficiaries.”
CPP will also receive certain governance and voting rights after closing. It provides exit options through a potential PHVL initial public offering or a put option against Prestige Estates and PHVL after five years.
Irfan Razack, Prestige Group chairman and managing director, said hospitality is central to the company’s long-term growth and that CPP’s approach complements its development expertise and market knowledge.
PHVL owns luxury and premium hotels and has a development pipeline spanning Bengaluru, Chennai, Delhi, Goa, Hyderabad and Mumbai. The investment builds on CPP’s hospitality exposure in Asia Pacific, including recent investments in Japan and Korea.
Prestige’s move to pursue CPP follows its decision to withdraw the proposed PHVL IPO. The private deal is still subject to due diligence, final agreements and regulatory and lender approvals.
