Prestige Real Estate unveils massive mall expansion across India
Real Estate

Prestige Real Estate unveils massive mall expansion across India

Prestige Real Estate Projects has been on a rapid expansion spree, with the inauguration of three new malls within the last nine months. However, this is just the beginning of their ambitious plans, as they have approximately 7-8 more malls currently in various stages of construction. These new developments are expected to materialise over the coming years, starting from 2025 onwards.

Based in Bengaluru, this real estate developer has an impressive lineup of around 11 malls, collectively encompassing a staggering 9 million square feet of gross leasable area. V Muhammad Ali, the CEO of Forum Malls at Prestige Group, shared this information during an interview at the MAPIC India retail summit.

In 2021, Prestige Real Estate Projects took a strategic step by divesting a majority interest and rights in eight retail properties to the private equity firm Blackstone. This move allowed them to significantly reduce their debt burden. While they retained small stakes in these malls, Blackstone initiated a real estate investment trust (REIT) for the mall portfolio. As a result, Prestige Estates' holdings were converted into units, currently accounting for approximately 4.5% of the overall REIT known as Nexus Select Trust.

The upcoming malls from the Prestige Group are all entirely owned by the company, although some are being developed in collaboration with partners. The land for these malls has primarily been acquired by Prestige Real Estate Projects.

The new malls under construction are notably larger, with each boasting over 1 million square feet of space. As stated by Ali, the company has chosen to operate on a larger scale in response to changing trends and demands. These forthcoming malls are spread across various locations throughout the country, including Goa, Kochi, Chennai, Hyderabad, Mumbai, and Bengaluru, where the company already manages four malls.

These malls are designed with a focus on providing visitors and customers with a comprehensive entertainment and cultural experience. In Bengaluru, Prestige has even inaugurated a centre for performing arts, complete with seating for 3000-4000 people, an auditorium, and space for live music concerts.

Approximately 25% of the mall space is dedicated to food and beverage brands, while the fashion segment has been proportionately reduced compared to previous designs.

Ali noted that the malls that have already opened are experiencing "phenomenal" foot traffic. While he did not disclose the exact capital expenditure figures, the management had mentioned a total capex of Rs 170 billion for the entire company in an earnings call held in August. The company plans to fund a portion of this capex using cash flows from residential projects and annuity flows from its commercial assets, while also considering lease rental discounting.

The malls boast a diverse mix of luxury and value brands, catering to a wide spectrum of customers, according to Ali.

Prestige Real Estate Projects has been on a rapid expansion spree, with the inauguration of three new malls within the last nine months. However, this is just the beginning of their ambitious plans, as they have approximately 7-8 more malls currently in various stages of construction. These new developments are expected to materialise over the coming years, starting from 2025 onwards. Based in Bengaluru, this real estate developer has an impressive lineup of around 11 malls, collectively encompassing a staggering 9 million square feet of gross leasable area. V Muhammad Ali, the CEO of Forum Malls at Prestige Group, shared this information during an interview at the MAPIC India retail summit. In 2021, Prestige Real Estate Projects took a strategic step by divesting a majority interest and rights in eight retail properties to the private equity firm Blackstone. This move allowed them to significantly reduce their debt burden. While they retained small stakes in these malls, Blackstone initiated a real estate investment trust (REIT) for the mall portfolio. As a result, Prestige Estates' holdings were converted into units, currently accounting for approximately 4.5% of the overall REIT known as Nexus Select Trust. The upcoming malls from the Prestige Group are all entirely owned by the company, although some are being developed in collaboration with partners. The land for these malls has primarily been acquired by Prestige Real Estate Projects. The new malls under construction are notably larger, with each boasting over 1 million square feet of space. As stated by Ali, the company has chosen to operate on a larger scale in response to changing trends and demands. These forthcoming malls are spread across various locations throughout the country, including Goa, Kochi, Chennai, Hyderabad, Mumbai, and Bengaluru, where the company already manages four malls. These malls are designed with a focus on providing visitors and customers with a comprehensive entertainment and cultural experience. In Bengaluru, Prestige has even inaugurated a centre for performing arts, complete with seating for 3000-4000 people, an auditorium, and space for live music concerts. Approximately 25% of the mall space is dedicated to food and beverage brands, while the fashion segment has been proportionately reduced compared to previous designs. Ali noted that the malls that have already opened are experiencing phenomenal foot traffic. While he did not disclose the exact capital expenditure figures, the management had mentioned a total capex of Rs 170 billion for the entire company in an earnings call held in August. The company plans to fund a portion of this capex using cash flows from residential projects and annuity flows from its commercial assets, while also considering lease rental discounting. The malls boast a diverse mix of luxury and value brands, catering to a wide spectrum of customers, according to Ali.

Next Story
Building Material

Ambuja Cements Drags JSW Cement to Court Over ‘Kawach’ Brand

Ambuja Cements, part of the Adani Group, has filed a trademark infringement case against JSW Cement in the Delhi High Court, alleging that its rival copied the ‘Kawach’ brand with its new product ‘Jal Kavach’.Justice Manmeet Pritam Singh Arora issued summons to JSW Cement and its subsidiary, JSW IP Holdings Pvt Ltd, while referring the matter to mediation. Hearings are scheduled to resume on October 15 if no settlement is reached.Ambuja, which registered the ‘Kawach’ trademark in 2019, argues that the term ‘Kavach’—meaning shield—is the distinctive feature of its branding. ..

Next Story
Technology

Bentley Systems Named Innovation Partner of the Year 2025 by Afcons

Bentley Systems, the infrastructure engineering software company, has been recognised by Afcons Infrastructure Limited as its Innovation Partner of the Year 2025 at the Innovation Partners 2025 Felicitation Ceremony in Mumbai. The award acknowledges Bentley’s contribution to Afcons’ engineering digitalisation journey through an enterprise agreement providing access to over 250 Bentley engineering software tools. This adoption has enabled Afcons to accelerate project delivery, standardise digital workflows, and strengthen innovation across its infrastructure portfolio. Among key i..

Next Story
Infrastructure Urban

SBI Sells 13.18% Stake in Yes Bank to Japan’s SMBC

State Bank of India (SBI) has completed the sale of a 13.18 per cent stake in Yes Bank to Japan’s Sumitomo Mitsui Banking Corporation (SMBC) for over Rs 8,889 crore. The divestment is part of a Rs 13,482 crore deal finalised in May with SMBC and seven private banks.Following the transaction, SBI’s shareholding in Yes Bank stands at 10.8 per cent. The deal, involving 4,134.4 million shares at Rs 21.50 each, is the largest cross-border transaction in the Indian banking sector.SBI Chairman C S Setty described the 2020 RBI-led rescue of Yes Bank as a pioneering public-private partnership, addi..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?