HDFC Property Ventures and Temasek are in talks to invest about $130m in the Bangalore-headquartered Prestige Group, as cash-hungry real estate companies continue to tap private equity funds to meet critical funding needs.

People close to the transaction said HDFC’s real estate fund along with Singapore’s Temasek are in discussions with Prestige, which is seeking a valuation of $1bn for its business. But the deal could take some time to fructify as both sides need to iron out a number of issues, including pricing.

Times of India