Shares of Prestige Estates Projects Ltd surged 8% on 1 April after the company announced signing an agreement with Kotak AIF and Abu Dhabi Investment Authority for expansion prospects in the residential sector with a gross development value of Rs. 18,000 crore through its subsidiaries for Rs. 2,001 crore.

In its regulatory filing, the company said that the Rs 2,001-crore agreement is devoted to the building of residential projects in four cities throughout India.

The partnership with ADIA and Kotak AIF is a deliberate step toward Prestige Group’s adoption of robust and organic growth, the company said in the filing. “The deal, with its substantial size, upholds the company’s vision to sustain its leadership position in the industry. It is aimed at catalysing the development of early-stage residential projects, ensuring the company’s commitment to prudent expansion and diversified growth,” said Prestige Estates.

“Given the increasing demand and consolidation in the sector, this deal will help in accelerating growth and expansion,” said Venkat K Narayana, Group CEO of Prestige Group. These funds will fuel the development of greenfield residential projects across the cities of Bengaluru, Mumbai, Goa, and NCR with a combined GDV of over Rs 18,000 crore, contributing significantly to the top line,” he added.

Earlier on 31 March, the company announced acquiring 50% partnership interest in Prestige Realty Ventures for a total cash consideration of Rs 165 crore, taking its total stake to 99.90%.

The shares have increased by almost 100% over the last six months, but year-to-date gains have only been 3%.

At 3:30 pm, the shares of Prestige Estates closed 7.69% higher at Rs 1,260 on NSE.