Bengaluru-based Prestige Group plans to develop 9 million sq ft of retail space across Mumbai and Delhi-NCR, expanding its mall business. In 2021, they sold 4.4 million sq ft of retail space valued at Rs 9,000 crore. Rebranding their malls aims to attract international brands and enhance customer experiences. Ali emphasised the rarity of malls generating Rs 100 crore monthly revenue, highlighting their Forum mall's success. Upcoming malls will feature destination retail, live music, cinemas, and technology-enabled experiences. With strong retail portfolio growth, including 102% YoY sales increase in Q2FY24, Prestige Group aims to join India's elite mall league.
Bengaluru-based Prestige Group aims to expand in the retail sector, with plans to develop 9 million square feet of retail space over the next three years. Muhammad Ali, CEO of Retail, revealed that the company's expansion will extend to Mumbai and Delhi-NCR initially, with negotiations already underway for a deal in Delhi-NCR. The move follows the sale of two-thirds of Prestige Group's retail business to Blackstone-backed Nexus Malls in June 2023.
This expansion has a diverse range of projects, including six malls in Bengaluru, two in Kochi, and one each in Chennai and Hyderabad. Prestige Group aims to revamp its mall business to attract more international brands and enhance the overall customer experience. Ali emphasised the competitive landscape of the shopping centre industry, noting that only a fraction of malls in India achieve monthly revenues exceeding Rs 100 crore, an elite group referred to as the "Big Billion League."
To position themselves within this exclusive league, Prestige Group's upcoming malls will feature not only destination retail segments but also live music areas, cinemas, and technology-enabled experiences. Ali highlighted the success of Forum mall in South Bengaluru, which achieved Rs 100 crore in revenue within 11 months of its launch. He pointed to Forum Rexwalk on Bengaluru's Brigade Road as an example, showcasing its diverse offerings with 14 restaurants and a theatre. The company looks forward to replicating this success with another mixed-space development in Whitefield, featuring 40 restaurants and a cinema within 1.5 lakh square feet of space.
Prestige Group's strong retail portfolio is shown by its ongoing retail capital expenditure of Rs 307.2 crore and a projected annual income of Rs 280.5 crore from the retail segment in FY25. In Q2FY24, the group reported a significant year-on-year sales increase of 102%, reaching Rs 7,092.6 crore. Furthermore, sales for the first half of calendar year 2023 amounted to Rs 11,007.3 crore, marking a 69% increase over the previous year. Customer collections also experienced a notable rise, reaching Rs 5,380.6 million, a 13% increase year-on-year.
Ali attributed this growth to a 40% average increase in retail demand post-2022, with corresponding rises in rental rates since the onset of the pandemic. He expressed confidence that Prestige Group's reimagined malls will sustain this momentum, propelling them into the esteemed ranks of India's premier shopping destinations.
In summary, Prestige Group's ambitious expansion plans encompass the development of 9 million square feet of retail space across key cities, alongside a strategic focus on enhancing the customer experience and attracting international brands. With a strong retail portfolio and high growth projections, the company aims to solidify its position among India's top-tier shopping centres.
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