Prestige Group to pump at least Rs 7,500 cr to gain foothold in Mumbai

The Bengaluru-based Prestige Group, which is entering the financial capital, has drawn plans of investing at least Rs 7,500 crore over the next four-five years to get a foothold in the foremost realty markets in the country, a top official has said.

The listed company, which has a presence in the southern market and has delivered over 250 projects, will develop both residential and commercial projects in the financial capital, its managing director Irfan Razack told PTI.

He said the group envisages developing at least 16 million square feet of space in six projects spread across the city and will be conservative in its approach in the market, which has seen quite a few developers facing troubles.

"We want to be a responsible developer who delivers whatever we have signed up for. We are not in any hurry and will be conservative," he said, detailing the projects.

The projects include developing one commercial property each in the Bandra Kurla Complex business district and one in central Mumbai's Mahalaxmi as well, along with a 6 million square feet integrated development project in the northeastern suburb of Mulund.

Other projects include another development at Mahalaxmi which will be focused on the residential segment, and a project each in Bandra's upmarket Pali Hill, south Mumbai's Marine Lines which will be developed jointly with a Balwa group entity and a redevelopment project in central Mumbai's Worli, he said.

Razack said some of the projects that it is developing were stuck due to various reasons in the past and the group will be completing the same, and added that they also include projects taken over from the National Company Law Tribunal, and added that this should be seen as part of consolidation in the market.

When asked about the Group's investment plans for the market, its chief executive Venkat K Narayana said it will invest at least Rs 7,500 crore in the market across projects.

It has already invested Rs 4,500 crore in acquiring land parcels or paying premiums while taking over a stuck project, he said, adding that Rs 3,000 crore more will be invested in the commercial properties that it is developing.

The group will be raising resources from internal accruals and also from banks and financial institutions to fund the capex, he said, stressing that there is no difficulty on this front.

The overall investment will be higher than the Rs 7,500 crore, he said, pointing out that the additional part of resources will be collected from bookings from projects and ploughed back in.

Replying to a question on the inventory that developers are already saddled with in Mumbai and how will the group manoeuver through it, Razack said there is ready property which is stuck in the city and exuded confidence that the group will be able to get sufficient demand through its offerings.

He said there is a demand for larger homes after the pandemic and the lockdowns that it induced, adding that people want more space because of the time they spend at home working or for education.

He said the demand for real estate is spurred by jobs and urbanisation, and the Mumbai market is no exception for the same which makes the group more confident about the play.

A senior group official said at present it is getting an annuity income of over Rs 3,000 crore per year from the commercial real estate assets, and will be looking at floating a real estate investment trust in the next four to five years.