Bengaluru-based real estate developer Prestige Group has ambitious plans to develop 9 million sq ft of malls within the next three years, revealed Muhammad Ali, CEO of Retail.
Initially focusing on Mumbai and Delhi-NCR (National Capital Region), Prestige Group aims to expand its mall footprint, with a deal close to finalization in Delhi-NCR. The company’s 2021 sales included 4.4 million square feet of retail space across seven shopping malls, valued at approximately Rs 9,000 crore. Currently holding a 15 percent stake in these malls, Prestige is strategically positioning itself for further growth.
In June 2023, Prestige sold a significant portion of its retail business to Blackstone-backed Nexus Malls. The upcoming developments include six malls in Bengaluru, two in Kochi, and one each in Chennai and Hyderabad.
Prestige is set to revamp its malls business to attract international brands and enhance the customer experience. Ali emphasized the importance of differentiation in the competitive mall industry, citing the success of Forum mall in South Bengaluru, which achieved Rs 100 crore revenue within 11 months of launch. The company aims to replicate this success by incorporating destination retail segments, live music areas, cinemas, and technology-enabled experiences in its upcoming malls.
With an ongoing retail capex of Rs 307.2 crore and a projected annual income of Rs 280.5 crore from the retail segment in FY25, Prestige Group demonstrates robust financial performance. In Q2FY24, the group recorded sales of Rs 7,092.6 crore, marking a 102 percent year-on-year increase. In the first half of calendar year 2023, sales amounted to Rs 11,007.3 crore, reflecting a 69 percent growth compared to the previous year.
Ali anticipates continued growth in retail demand post-2022, leading to a surge in rentals. He remains optimistic about Prestige’s repurposed malls’ ability to achieve significant milestones in India’s mall industry.
