Prestige earmarks Rs 7,000 crore to launch new projects

February 05, 2010

Priyanka Kapoor

Bangalore-based Prestige Group has plans to invest Rs 7,000 crore to launch new projects across residential, commercial, retail and hospitality segments in south India within the next two quarters. Of the total investment, over Rs 2,000 crore each will be spend on both residential and commercial projects, Rs 1,500-1,600 crore for retail development and Rs 1,000 crore in hospitality segment.

Meanwhile, the company launched its high-end residential project -- Prestige White Meadows -- at Whitefield, Bangalore on Thursday. Sprawled over 28 acres, the project comprises 214 sky villas in four high rise towers and 66 villas set in scenic grounds.

Speaking on the occasion, Irfan Razack, chairman and managing director, Prestige Group, said, “We are launching several projects within the next two quarters this year across sectors including residential, commercial, retail and hospitality. We are targeting cities in south India like Chennai, Mysore, Mangalore, Cochin, Hyderabad and Bangalore. Total investment of about Rs 7,000 crore will be made for these projects and the funds will be generated through internal accruals (almost 50-60 per cent), bank debt and IPO.”

In the residential domain the group has seven projects in the pipeline with a total investment of about Rs 2,000 crore. These projects will be a mix of luxury, mid-segment and affordable housing.

“Currently we have seven residential projects in the pipeline. Besides Prestige White Meadows, that was launched, there are three more luxury housing projects in the pipeline. In addition, there are a few mid-segment projects within the price range of Rs 25-35 lakh. There are also a couple of affordable housing projects which will be priced anywhere between Rs 12-30 lakh,” Razack added.

Furthermore, in the IT space the group has few projects including Prestige Tech Park Phase 3, Cessna Business Park, IT Park at Prestige Shantiniketan and another project for Cisco. For all these developments an investment of over Rs 2,000 crore will be made.

The company plans to invest anywhere between Rs 1,500-1,600 crore on retail developments. There are seven malls coming up in different cities like Mangalore, Bangalore, Cochin, Chennai, Mysore and Hyderabad.

“We will be developing over 5 million sq ft of retail space in the coming year. There are 7 more Forum Malls in the pipeline in different cities in south India. Further, on the hospitality front we have about four projects in the pipeline with an investment of over Rs 1,000 crore,” Razack told Property Pulse.