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Renowned real estate developer Prestige Group intends to build nine million square feet of mall space over the next three years. The CEO of retail segment, Muhammad Ali announced the upcoming retail developments in the next few years.
He stated that Prestige Group is first intending to expand its malls in Delhi-NCR (National Capital Region) and Mumbai. He also mentioned that the firm is almost done finalizing a contract in Delhi-NCR, but he did not provide any specifics.
With a projected value of Rs 9,000 crore, the business sold 4.4 million square feet of retail space in seven shopping complexes in 2021. According to Ali, the group presently owns 15% of the malls. The firm sold Blackstone-backed Nexus Malls two thirds of its retail division in June 2023.
Prestige Group Rebranding The Mall Company Is On Pace
The next developments include six malls in home city Bengaluru, two in Kochi, and one each in Chennai and Hyderabad, in addition to one each in the national and commercial capitals.
Prestige stated that it is on schedule to rename its mall business in order to draw in more foreign businesses and provide customers an unforgettable experience while visiting the new malls.
Ali emphasized that the retail industry is not an equal-opportunity game. “Of the more than 500 malls in India, just 38 generate more than Rs 100 crore in sales each month—less than 10 percent—and hence fall short of the Big Billion League of Indian malls. After opening in South Bengaluru last year, our Forum mall brought in Rs 100 crore in sales in just 11 months,” stated Ali.
According to Ali, in order to join this group, Prestige’s future malls will provide technology-enabled experiences in addition to a destination shop section, live music venues, and movie theatres.
Ali used the example of the Forum Rexwalk, a theater and fourteen eateries located on Brigade Road in Bengaluru. Even though there aren’t any big retailers here, foot traffic has increased. And we’re excited to open a second, 1.5 lakh square foot mixed-use complex in Whitefield with 40 eateries and a movie theater,” he said.
Prestige Group Strong Portfolio For Retail
The business has an ongoing retail expenditure of Rs 307.2 crore, and the annual income from the retail sector in FY25 is forecast at Rs 280.5 crore, according to the investor presentation in Q2FY24, the latest accessible numbers.
The business recorded revenues of Rs 7,092.6 crore in Q2FY24, a 102 percent increase over the previous year. During the first half of 2023, the firm had revenues of Rs 11,007.3 crore, which was 69% greater than the previous year. Additionally, customer collections were Rs 5,380.6 million, 13% higher than the previous year.
After 2022, there was an average 40% increase in retail demand, which led to a considerable increase in rentals following the pandemic. We think that our renovated new malls will keep growing and eventually join India’s Big Billion League of malls,” Ali stated.
38 Years Of Excellence For Prestige Group With 300 Completed Projects
By completing 300 projects totaling 188 million square feet over the course of 38 years in cities including Bangalore, Hyderabad, Chennai, Mumbai, Kochi, Mangalore, Calicut, and Goa, Prestige Group has accomplished a significant milestone.
Prestige Group has finished 150 residential projects totaling 127 million square feet, 125 commercial properties totaling 48 million square feet, and 13 retail projects totaling 10 million square feet out of 300 projects. In total, it has completed 12 hospitality projects with over 4 million square feet and 1500 keys.
The 300 projects show off Prestige Group’s adaptability and capacity to satisfy the changing demands of its clients by including a wide spectrum of residential, commercial, and hotel developments.
Source-ET
