Prestige Acquires 50% Stake in Andheri East Hospitality Project

Prestige Estates Projects Ltd has made a decisive move into Mumbai's high-value Sahar micro-market. Bengaluru-based Prestige Estates has entered into an investment agreement to acquire 50 per cent stake in Advent Convention and Hotels International Ltd (ACHIL), which is undertaking development of a commercial project in Mumbai, according to a regulatory filing on July 3. The deal marks one of the largest hospitality-led real estate transactions in the city this year.

The transaction was disclosed through a stock exchange filing, with the terms clearly laid out. Prestige and ACHIL would develop a commercial project on lands admeasuring to 21,978.22 square metre at Andheri East, Mumbai. The project entails a total leasable area of 1.50 million sq ft and has a gross development value of ₹4,500 crore. Prestige Estates will infuse an amount of up to ₹504 crore for the acquisition of the 50 per cent stake in ACHIL, the filing said.

The project sits in a specific and strategic pocket of the eastern suburbs. The project itself spans approximately 5.4 acres (21,978.22 square metres) of prime land in Sahar, Andheri East, near Mumbai's International Airport. This proximity to the airport, combined with Sahar's existing cluster of business hotels and corporate offices, makes the location one of the more sought-after commercial addresses in the eastern suburbs.

The partner on the other side of the table brings established hospitality credentials. ACHIL, led by CEO Rahul Pandit, is a Mumbai-based hospitality company operating luxury and upper-upscale hotels, including Grand Hyatt Goa and Hilton Mumbai International Airport. Following the transaction, ownership of the SPV will be evenly split. Consequent to this transaction, ACHIL shall cease to be a wholly-owned subsidiary of the Company, and the Company will continue to hold the remaining 50% economic and voting interest as a joint venture entity.

Industry trackers note the significance of the pricing implied by this deal. By divesting a 50% stake for ₹504 crore, Advent has effectively valued the single project SPV at over ₹1,000 crore, which significantly exceeds the current total market capitalization of the parent company. The transaction also builds on recent groundwork at the site itself. Earlier in June 2026, the SPV ACHIL purchased the Sahar land parcel from the parent company for ₹275 crore, setting the stage for this JV.

The development itself is being positioned as a hybrid asset rather than a pure hotel play. The development is positioned as a hospitality-led mixed-use complex, combining premium hotel operations with complementary commercial and office components. Analysts tracking the deal expect a phased rollout. Prestige and Advent are likely to announce groundbreaking and formal project branding by Q4 2026 or Q1 2027. Investors and occupiers should monitor quarterly updates on project commencement, construction timelines, and early-stage tenant leasing interest.

This Mumbai push comes against the backdrop of strong financial performance at the group level. Recently, the company reported a two-fold jump in net profit to ₹1,195.5 crore for the last fiscal year from ₹467.5 crore in 2024-25. The Andheri East acquisition adds to an already sizeable pipeline. Since its inception, the group has delivered 313 projects spanning 206 million sq ft. It has a pipeline of 128 projects across 195 million sq ft.

For homebuyers and commercial occupiers watching Mumbai's eastern suburbs, this deal reinforces Sahar and Andheri East as an increasingly institutional-grade micro-market. Andheri East & Sahar Micro-Market is an emerging secondary commercial hub attracting mid-size IT, logistics, and e-commerce tenants; increasingly popular for affordable Grade-A office alternatives to BKC. With a Tier-1 developer like Prestige now co-owning a marquee project here, expect faster infrastructure upgrades and rising interest from both residential and commercial buyers in the surrounding pockets.