Prestige group to enter retail sector

Real estate developer, Prestige Group, is entering the retail space in the next three months by floating a special purpose vehicle, which will set up department stores across the country, said its chairman and managing director Irfan Razack.

“We will invest around Rs 300 crore and the target would be mid-income group,” he said after launching Prestige Bella Vista, its first residential project for the Chennai market.

“It is (retail) a cash cow business. If you know how to do it, you will make money,” said Razack. It has set a target of Rs 1,500-2,000 crore over the next five years and would invest around Rs 300 crore through this new subsidiary.

Similarly, it has set up a subsidiary K2K, to take contracts of property and infrastructure developments. “The company has orders worth around Rs 300 crore and plans to increase it to Rs 1,000 crore next year,” he said.

It is also planning to invest around Rs 2,500 crore in developing malls, special economic zones and to set up four five-star hotels. “These will be funded through debt and internal accurals,” he said.

The Bella Vista at Porur, a gated project, is spread over 25 acres and is expected to see investment and construction cost of Rs 800-850 crore. It will be 60:40 joint venture, the partner city-based Rattha Group will get 40 per cent of the built-up area, which will be equal to the cost of land. The company would start construction work by March and expects to complete it in three years. The built-up area would range from 600 sft to 2,621 sft.