Prestige Group to invest Rs 10,000 crore for commercial development in Bengaluru

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Bengaluru-based Prestige Group plans to launch more than 12,000 residential units across India by March 2023 and invest Rs 10,000 crore for office space development in Bengaluru over the next five years.
It is eyeing Rs 2,800 crore of annual net operating revenue across the commercial segment over the next five years.

Among the launches in the residential segment, about 5,000 units will be in Bengaluru and Hyderabad each, 2,000 units in Pune and about 400-700 inventories in Mumbai.

Swaroop Anish, Executive Director, Business Development, Prestige Group, told Moneycontrol, "In Mumbai, we are only looking at fewer fresh launches of Rs 2.5 crore and above. We are also looking at 200 acre-plus township development in Hyderabad over the next year under our Prestige City wing."

The company said it plans to foray into National Capital Region (NCR) for residential projects but did not share any timeline for the launches.
For Bengaluru, Prestige is looking at major developments near Whitefield and in the southern parts of the city.

The company will also launch 50 acres of plotted development in the first quarter of next year.

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The office space portfolio

With 40 million square feet (msf) of launches in the pipeline over the next five years, Prestige Group is looking forward to 40-45 msf of absorption this year across Delhi, NCR, Hyderabad, Pune, Bengaluru, Chennai and Kolkata.

"We have already started working on an office space sprawling across 4 msf in Bandra Kurla Complex and are also in the process of constructing India's tallest office building in Mahalaxmi, Mumbai," Jagdeep Singh Marwaha, Chief Executive Officer, Prestige Office Ventures, told Moneycontrol.
The office space in Bandra Kurla Complex is managed by CBRE and is set to be launched by 2026. While in the office space managed by JLL in Mahalaxmi, the first stage of construction is underway and is set to complete within the next 3 months.

"At Mahalaxmi, one of the towers is almost 300 metres high, taller than Eiffel Tower. There will be 68 floors in one of the towers and 38 in others," Marwaha added.

Additionally, for the office portfolio, the company is planning 1 msf of launches in Pune and will hand over 2 msf of development by the first quarter of the next year.

The company is planning its largest developments of about 50 msf in Bengaluru. "We are developing two large office parks in the city — one sprawling 4.5 msf in partnership with Blackstone in the Outer Ring Road. The construction has started and we are set to launch by Q1 of 2024. Another one will be launched in Q1 of 2025 near Hebbal at about 2.5 msf," Marwaha said.

To foray into data centres, more warehouses

Prestige Group will launch one data centre in Bengaluru, which will be operational over the next 12-18 months. "Data centres require high capital expenditure, however, the market in India looks promising. The one in Bengaluru will have a capacity of about 100 megawatts," Marwaha said.

Recently, the company partnered with IndoSpace for opportunities in warehousing across Bengaluru. "We are looking at two large warehousing parks — of about 5-6 msf — in the city, one in Dobbaspet and another in East Bengaluru. While we will handle the local developments, the design, planning, execution and leasing will be done by IndoSpace," Marwaha added.

To double its retail portfolio in 3 years

Prestige is coming up with nine malls with sprawling 8 msf across Bengaluru, Chennai, Hyderabad, and Kochi by January 2026. Muhammad Ali, Chief Executive Officer, Retail, said the company is also considering to foray into Mumbai within the next few years.

"In 2020, we sold eight of our Forum malls to Blackstone and those were renamed Nexus. However, after the pandemic, we reimagined the multi-complex shopping malls in India with a digital boom that happened after Covid and an experiential design," Ali said. "We are hoping to double the retail portfolio over the next three years," he added.

Earlier this month, the company inaugurated Forum Falcon City, a sprawling 8 lakh sq ft retail space, in Bengaluru.