HDFC Property Ventures and Temasek are in talks to invest about Rs 625 crore in the Bangalore-headquartered Prestige Group, as cash-hungry real estate companies continue to tap private equity funds to meet critical funding needs.

HDFC’s real estate fund along with Singapore’s Temasek is in discussions with Prestige, which is seeking a valuation of $1 billion 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.

Prestige Estates is seeking a valuation of about $1 billion. It is not clear if Temasek and HDFC are willing to do a deal at that price. They may look at something between $800 million and just under $1 billion.

The two funds may jointly pick up a little over 15% stake in Prestige Estates Projects, valuing the holding entity of the southern real estate major anywhere between $800 million and $1 billion.