Credit: Special Arrangement
Bengaluru: Bengaluru-headquartered real estate major, the Prestige Group is positive about closing FY24 with Rs 18,000-20,000 crore in total sales, company chief executive Venkat K Narayana told DH on Tuesday. This would mark at least a 39% year-on-year growth over the Rs 12,931 crore clocked in FY23.
The Group is slated to launch six residential projects, including two joint venture undertakings, before the end of the ongoing fiscal year. They will collectively span 12 million square feet (msf) across Bengaluru, Mumbai, Chennai and Noida.
The six projects, upon completion in a three year timeframe, are expected to fetch the realty player Rs 20,000 crore in sales revenue. Of this, 25% or Rs 5,000 crore is expected to land in the company’s coffers this fiscal year itself.
So far this year, the company has launched six residential projects spanning 16 msf across Bengaluru and Hyderabad.
On the hospitality front, the company is making long strides. “We have 9 hotels running - 1,361 keys, and we have almost 1,600 keys - seven more hotels, either under construction or planning,” Narayana elaborated. The upcoming projects include Edition O in Mumbai, Moxy in Chennai and JW Marriot in Sakleshpur.
Going by numbers in the current portfolio, JW Marriott Bengaluru Prestige Golfshire Resort & Spa is the company’s star performer, followed by Sheraton Grand Bengaluru Whitefield Hotel & Convention Center.
Moving forward, the company will channel efforts into deepening and widening its presence in the Pune and Mumbai markets, besides making inroads in the National Capital Region, Narayana underscored.
With the Indian real estate industry on a bull run this year, Narayana attested to negligible unsold inventory levels. “Our completed project inventory is around Rs 300 crore in comparison with Rs 13,000 crore sales that happened last year. So, it is 2-2.5%,” Narayana said.
Prestige is currently engaged in 24 msf of office space construction, with another 15 msf of projects under design, planning or approval stages.
“On an average we will be delivering around 8-10 msf of office space across 7-8 cities. That will also take our rental income to Rs 3,000-plus crore in 4-5 years’ time,” Narayana elaborated.
“Our retail income will also grow from Rs 220 crore to about Rs 600 crore in 3-4 years time,” he added.
While the group sees potential in alternate asset classes such as warehousing and data centres, with one project active in each category, it will be some time before Prestige diverts serious focus to these segments, Narayan said.