Prestige Group ramps up investment plans

Last week, CNBC-TV18 reported how Bangalore-based Prestige Group is going against the grain and betting big on malls. But these malls are just the tip of the iceberg, reports CNBC-TV18's Vineetha Athrey.

The Prestige Group is not putting all its eggs in one basket. While it is betting on mall development and plans to open five news malls in southern India, it has also drawn up plans to invest over Rs 1,600 crore in other realty segments. Over the next three years, funds will be deployed on projects related to hospitality, affordable housing, a technology park, and even a special economic zone.

Of this Rs 1,600 crore, Rs 300 crore will go into a 300-room Hilton, Rs 200 crore will go into a 275-room Marriott, and around Rs 120 crore will go into a hotel under the Aloft banner. These projects will come up by 2012. Residential projects outside Bangalore are also on the radar.

Irfan Razack, CMD, Prestige Group, says, "We are looking seriously at a decent location and land so we are in the process of tying up something for residential in Chennai. We are doing work in Cochin, a mall and marina development. We are doing a villa project and mall in Hyderabad, Mangalore, and Mysore."

Prestige believes that while malls and hotels are good bets, the high-volume affordable housing space will offer strong support. On the drawing board are three projects in Bangalore, each spread over 300 acres. "The first one will be launched in the middle of next year near the new international airport. We have land with us. For the other two, we have aggregated large chunks of it, and are trying to put it together so we can get approvals to start off with it," Razack added.

An Rs 200 crore SEZ is also on the cards, as is a separate 2 million square foot township in Bangalore, at an investment of Rs 500 crore.

Prestige is also planning a residential wing with 75 units, within its luxury mall UB City, at an investment of Rs 300 crore. CNBC-TV18 learns that funds for these will be through a combination of debt, private equity, and the IPO that is expected to hit the market soon.