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    Prestige Estates plans to expand retail presence to 15 malls

    Synopsis

    With consolidation of its stake in malls across the country almost over, Prestige Estates is now eyeing a rental income of Rs 400 crore annually from its retail ventures.

    real-estateeeGetty Images
    The domestic retail real estate sector is expanding, driven by consumerism across the urban spectrum.
    BENGALURU: Prestige Estates Projects is planning to expand its retail presence to 15 operational malls, totalling 10 million sq ft, over the next three years. Currently, it has eight operational malls, totalling 4 million sq ft, mainly in the southern cities.

    With consolidation of its stake in malls across the country almost over, Prestige Estates is now eyeing a rental income of Rs 400 crore annually from its retail ventures.

    “The plan was to acquire stake across malls. With the latest acquisition in Hyderabad, the consolidation is more or less over,” said people aware of the plans. “The net operating income from the Hyderabad mall (alone) is over Rs 95 crore.”

    The Prestige Group could not be reached for comment.

    ON AN EXPANSION SPREE
    Earlier this week, the Bengalurubased company through its wholly-owned subsidiary Prestige Retail Ventures acquired 100% stake in Hyderabad’s Forum Sujana Mall in a Rs 364-crore deal. “The company earlier owned 49% stake in the 7,00,000-sq-ft mall, owned by the Sujana Group of Hyderabad,” said two people aware of the deal.

    In 2018, Prestige Estates bought CapitaLand’s stake across mall projects for around Rs 342 crore. The acquisition included five operational retail malls in Bengaluru, Hyderabad, Mangaluru, Mysuru and Udaipur, and a mall management company. It also included a residential project in Kochi and serviced residences in Bengaluru.

    BOOM TIME
    The domestic retail real estate sector is expanding, driven by consumerism across the urban spectrum.

    Recently, Abu Dhabi Investment Authority (ADIA)-backed Lake Shore India Advisory bought a majority stake in a retail mall project in Hyderabad from the Phoenix Group for about Rs 1,000 crore. Last year, Island Star Mall Developers bought a land parcel in Hebbal, north Bengaluru, for Rs 650 crore. Real estate developer Nitesh Estates also sold its 1 million sq ft shopping mall in Pune’s Koregaon Park. Xander-backed Virtuous Retail is in advanced talks with Tata Realty and Infrastructure (TRIL) to buy two mall projects in a Rs 700-crore deal. Between 2015 and 2018, the retail sector attracted cumulative investments of over Rs 5,500 crore, of which close to Rs 1,300 crore was in 2018 alone, said Anarock Property Consultants.


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