Prestige Group to Expand Retail Real Estate With 9 Million Sq Ft of New Mall Space

Prestige Group, a leading real estate developer based in Bengaluru, is set to dramatically increase its footprint in the retail sector, with plans to develop 9 million square feet of mall space across key Indian cities within the next three years. Under the strategic direction of Muhammad Ali, CEO of Retail, the group is eyeing expansion into the bustling markets of Mumbai and Delhi-NCR, signaling a significant phase of growth for the company.

Strategic Developments Across India

The expansion blueprint includes an ambitious rollout of six new malls in Bengaluru, complemented by two in Kochi and one each in Chennai and Hyderabad. This move is not just about adding space but diversifying the retail experience in India's fast-evolving market.

Rebranding for a New Retail Era

As part of its strategy to attract more international brands and enhance the shopping experience, Prestige is on the verge of rebranding its mall business. This initiative aims to transform visits into experiential journeys for customers, setting a new standard for what malls can offer.

Elevating the Mall Experience

Ali sheds light on the competitive nature of the mall business, noting that only a fraction of India's malls achieve significant revenue milestones. Prestige aims to join this elite group by introducing destination retail segments, live music areas, cinemas, and technology-driven experiences in its upcoming projects. The Forum Rexwalk in Bengaluru, with its diverse mix of dining and entertainment options, exemplifies Prestige's vision for future developments.

A Portfolio Poised for Growth

With a robust retail capex of Rs 307.2 crore and a projected annual income of Rs 280.5 crore from the retail segment in FY25, Prestige Group is on a strong trajectory. The company's sales surged to Rs 7,092.6 crore in Q2FY24, marking a 102 percent increase year-on-year.

The first half of 2023 saw sales reaching Rs 11,007.3 crore, a 69 percent rise from the previous year, accompanied by a 13 percent increase in customer collections.

Ali remains optimistic about the future, anticipating continued growth in retail demand and rentals post-pandemic. He believes the newly repurposed malls will propel Prestige into the 'Big Billion League' of Indian malls, heralding a new era of retail prosperity.