CPP Investments buys 27% stake in Prestige Hospitality for Rs 3,000 crore

Canada Pension Plan Investment Board (CPP Investments) has invested Rs 3,000 crore (C$441 million) in Prestige Hospitality Ventures Ltd (PHVL), acquiring approximately a 27% stake, the companies announced on Tuesday, 29 September. The Economic Times and Mint report that the investment marks CPP Investments' first direct entry into India's hospitality sector. The capital will be deployed in two ways: The Economic Times reports that Prestige Estates will receive Rs 950 crore from a secondary sale of shares, while PHVL will receive Rs 2,050 crore through primary capital infusion across three tranches of compulsory convertible preference shares.

The deal follows Prestige Hospitality's withdrawal of its Rs 2,700 crore draft IPO prospectus on Saturday, 26 September, citing 'strategic considerations and uncertain market conditions'. Mint reports the IPO withdrawal as context, The Economic Times's first story omits it, but its later story notes exit rights granted to CPP Investments, including a put option after five years or an IPO. Irfan Razack, chairman of Prestige Group, said CPP's long-term approach complements the developer's capabilities. Hari Krishna, head of Real Estate India at CPP Investments, cited rising travel demand and India's accommodation needs as growth drivers.

Update, 2 October 2026: A new Economic Times report on Wednesday, 30 September, adds that the investment will be made in three tranches, with Prestige Estates receiving Rs 950 crore and PHVL receiving Rs 2,050 crore of fresh capital. It also details exit rights for CPP Investments, including a put option after five years, and a separate Rs 400 crore corporate guarantee for a PHVL loan from Axis Bank.