Brokerage firm CLSA has a ‘buy’ rating for Prestige Estates, stating that it expects strong rental growth and a healthy yield on the company’s upcoming rental portfolio. It has a price target of Rs 360 for the stock.

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The brokerage states the real estate company has created a strong war chest for its next leg of growth, and, at current levels, the stock offers a very favourable risk-reward ratio.

Prestige Estates was incorporated in 1997. It’s a mid-cap company operating in the real estate sector. Last year, in October, Bengaluru-based Prestige Estates had signed a deal with global investment firm Blackstone Group for stake sale in the company’s assets.

Earlier this month, Prestige Estates completed phase one of the proposed transaction with the US-based private equity giant worth Rs 7,467 crore. The total enterprise value of this deal, as mentioned in the initial disclosure, is about Rs 9,160 crore, which includes phase two as well.

Phase one includes the sale of 12 assets or undertakings, which includes completed retail, office, and hotel assets, the company said. The second phase of the transaction is likely to be completed by the end of next quarter, said Prestige Estates.