Prestige Estates Projects plans 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 the 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.
The net operating income from the Hyderabad mall is over Rs 95 crore. Earlier this week, the Bengaluru-based company through its wholly-owned subsidiary Prestige Retail Ventures acquired a 100% stake in Hyderabad’s Forum Sujana Mall in an Rs 364-crore 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. 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.
