Prestige Group Eyes Rs 60,000-Crore In Revenue After Completion Of Pending Projects

Real estate player Prestige Group expects its top line to touch Rs 60,000 crore after completion of all pending projects.

Currently, the company has an overall project pipeline of 60 million square feet under development, according to Irfan Razack, chairman and managing director of Prestige Group.

The project pipeline, which spans both commercial and residential segments, includes office spaces, residential lands and hospitality projects.

“We have (projects) in the pipeline where the lands are tied up, plans have been locked in for approvals to the extent of almost 60 million square feet, which will eventually land us with Rs 60,000 crore of top line. This is not something of the future. This is what we already have in our pocket and what we can bring to the market,” Razack told NDTV Profit, adding that the pipeline can even increase to 70–80 million square feet at some point.

However, the company will not use the Rs 5,000-crore that it recently raised via the qualified institutional placement route to accelerate the ongoing projects. “This QIP money is for the future to invest into more properties so that the pipeline increases, as we can't just sit back and will have to keep fueling it,” he said.

Prestige Group launched its QIP on Aug. 29, after its board approved the allocation of 2.99 crore equity shares at an issue price of Rs 1,674 apiece to the qualified institutional buyers.  

“One-third of the money will be used for clearing debt. Another third of it will be used for acquiring new properties and business development. The rest of it will go towards our contribution to various SPBs (sale of buyer's property) where we are doing capex projects like office, retail and hospitality,” Razack said.

A portion of the funds will be used for land acquisition in locations like Bengaluru, Chennai, Mumbai, and Delhi-NCR, the top executive added.

The company is developing several office spaces across cities. More than 20-million square feet of office space is being developed in Mumbai, Bengaluru, and Chennai, Razack said.

“All these should fructify and get completed in the year 2028 and that’s when the top line revenues will shoot up tremendously. Currently, it's a work in progress,” he added.

Prestige Group should end up with top line revenue of about Rs 3,800 crore by FY28, if everything gets leased out on the office real estate side, the top executive said.

Elaborating on the company’s revenue growth for FY28, Razack said that its retail and hospitality space projects too will contribute to it. 

“Retail is also about 11 million square feet of retail space getting built over various assets. Even that should contribute around Rs 1,100 crore. In the hospitality business, we are looking at an NOI (net operating income) of about Rs 1,000 crore on all the assets that are getting built,” he said.