South India realty giant Prestige Group is looking for major expansion. Apart from foraying into NCR residential real estate market, the company is now also looking to acquire malls across major cities to expand its rental income base.
The Bengaluru-based company reportedly is in talks to buy out malls in Pune and Mumbai. If the things go well, these acquirements will mark the firm’s entry into these cities’ real estate market.
“We have an aggressive mall development pipeline and are in discussion to either buy out or reposition malls,” Suresh Singaravelu, executive director for retail, hospitality and business development at Prestige Group, told ET. “There is a good demand from brands.”
Singaravelu further added that the group will look to acquire malls ranging from 800,000 sq ft to 1 million sq ft. The company is definitely planning an aggressive plan as it expects to have 13 malls, totaling 7.5 million sq ft of leasable retail space across seven cities by 2020.
It was reported earlier this year that the Prestige Group has acquired Singapore-based CapitaLand’s stake across five mall projects in Hyderabad, Mangaluru, Mysore, and Udaipur. These buyouts include a mall management company, operating Oakwood serviced residences in Bengaluru and under-construction properties in Kochi.
The company has upcoming projects totaling 48 million sq ft across assets class. It also holds a land bank of 424 acres with the potentially developable area of over 42 million sq ft.
The announcement comes just a week after it was reported that Prestige Group is planning to foray into NCR residential market. The group reportedly is planning to launch a middle-income housing project in Noida that will be spread across 22-acres.
Apart from the middle-income housing project in Noida, the company is also planning to launch a commercial project in Gurugram. Both the projects are planned to be executed through partnerships and joint ventures.