Prestige Group plans to build and operate its own shopping centres, says more malls in the pipeline

Prestige Estates plans to build, own and operate its own shopping centres and there are more malls in the pipeline, the group's CMD Irfan Razack said. Last month, Prestige Estates opened its first large mall after the Blackstone Group transaction and it got the company good footfalls.

“Footfalls of around 100,000 people on a weekend is unheard of and that is Prestige Falcon City at Kanakapura Road and that mall is trading very nicely,” he told CNBC-TV18.

In terms of office rentals, the demand has come back. With this no-COVID situation, there is a push from all companies that everybody should start working from office, he said.  “The demand for office is back, the inventory is minimal, the vacancies are very minimal and the rentals have firmed up,” he added.

Prestige Group is one of the leading real estate developers in the country, with a track record of over three decades in real estate development. It has a diversified business model across residential, office, retail and hospitality segments with operations in 12 key locations in India.

The company has a very strong pipeline, which is making the management very confident. “First two quarters of this financial year did Rs 6,500 crore bookings and our target is around Rs 12,000 crore for the year which is Rs 2,000 crore plus from the previous year. We can beat that,” he said.

The company has lack of inventory in Bengaluru. “The inventory is less in Bengaluru and that is the reason why we are working hard to see that we get all our approvals and our RERA numbers are in place, so that the final quarter should be the best quarter that we have ever had,” he explained.

Motilal Oswal is bullish on Prestige Estates and the brokerage expects the 2023 calendar year to be a defining year for the company.

Prestige Estates has Rs 6,500 crore of inventory in ongoing projects and Motilal Oswal has raised their FY24 pre-sales growth estimates by 16 percent.

“The inventory coming in from Bengaluru, large projects coming in from Hyderabad, Mumbai and the contribution from smaller cities such as Kochi, Calicut put together, 2023 will be a defining year for the company,” he said.

Motilal Oswal in its recent note mentioned that Prestige Estates could see Rs 15,000-17,000 crore of pre-sales in FY24. When asked if this is a reasonable assumption, he replied, “Rs 15,000 crore is a very reasonable assumption considering that we have a lot of stock in the pipeline and considering the market as well as there is a lot of dealer’s confidence in the company that we will deliver. Rs 15,000 crore for 2023-2024 is pretty easy.”

The stock was up 4.22 percent in last one week and down 6.03 percent in the past month.

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