Prestige Estates Issues ₹400 Crore Corporate Guarantee for JV Canopy Living LLP's Term Loan

Prestige Issues ₹400 Crore Guarantee for Canopy Living Loan

Prestige Estates Projects Limited issued a corporate guarantee of up to ₹400 crores to secure a term loan facility for its joint venture Canopy Living LLP from Aditya Birla Capital Limited. The transaction was disclosed on March 9, 2026, in compliance with SEBI Listing Regulations and has been conducted on an arm's length basis with no promoter group interest.

Nature of the Guarantee

The guarantee represents a contingent liability with no immediate impact on the company's operations. In corporate practice, a contingent guarantee allows a lender to have additional assurance that the borrower can meet its financial obligations. For Prestige Estates, the guarantee structure ensures that Canopy Living LLP has the financial backing to execute the Velachery residential development without adding debt directly to the parent company's balance sheet.

The Velachery Project

Prestige Estates Projects Limited and Arihant Foundations and Housing Limited jointly acquired a prime 3.48-acre land parcel in Velachery for ₹361 crore, purchased from Rane (Madras) Limited through their joint venture entity, Canopy Living LLP.

The 3.48 acres will support approximately 7.5 lakh square feet of premium residential space, with an estimated Gross Development Value exceeding ₹1,600 crore. Velachery is located in South Chennai, a major residential and commercial hub with connectivity to IT corridors along Old Mahabalipuram Road (OMR) and GST Road, and has witnessed significant infrastructure growth over the past decade.

Prestige Group's Expansion in Chennai

Prestige Group is a Bangalore-based top Indian Real Estate developer founded by Razack Sattar in 1986. Prestige Group has delivered 302 projects covering 193 million square feet and currently has 130 projects under various stages of construction and planning, amounting to an additional 203 million square feet. The Canopy Living guarantee reflects the group's continued investment in its Chennai pipeline, strengthening the financial framework for premium residential development in one of South India's key metropolitan markets.