The investment will be made through multiple tranches and will comprise a combination of primary and secondary investment, as mutually agreed between the parties under the definitive documents, according to a regulatory filing by Prestige Estates.
The binding framework agreement was executed on Monday. The proposed transaction is subject to completion of due diligence, finalisation and execution of definitive documents, and receipt of all necessary regulatory and lender approvals.
PHVL is currently a wholly owned subsidiary of Prestige Estates, with its shares held entirely by the company and its nominees. The completion of the sale of shares to CPP Investments or subscription of shares by CPP Investments will depend on fulfilment of the conditions precedent under the framework agreement.
PHVL reported standalone turnover of Rs 345.89 crore in the last financial year, while Prestige Estates reported consolidated turnover of Rs 13,195.5 crore.
The transaction will be completed only after the parties finalise the definitive documents and fulfil the applicable conditions precedent, including due diligence and receipt of necessary regulatory and lender approvals. The definitive documents will determine the detailed terms of the transaction.
CPP Investments is a global investment management organisation that manages the Canada Pension Plan Fund for over 22 million contributors and beneficiaries.