Realty developer PrestigeNSE 2.34 % Estates Projects is looking to acquire malls across major cities to expand its rental income base.
The Bengaluru-based company is in talks to buy out malls in Pune and Mumbai, according to Suresh Singaravelu, executive director for retail, hospitality and business development at Prestige Group. The move will mark its foray into these cities. “We have aggressive mall development pipeline and are in discussion to either buyout or reposition malls,” Singaravelu said, adding that the group will acquire malls ranging from 800,000 sq ft to 1 million sq ft. “There is a good demand from brands.”
By 2020, the group will have 13 malls, totalling 7.5 million sq ft of leasable retail space across seven cities, Singaravelu told ET. Earlier this year, the group acquired Singapore-based CapitaLand’s stake across five mall projects in Hyderabad, Mangaluru, Mysuru and Udaipur.
It includes a mall management company, operating Oakwood serviced residences in Bengaluru and under-construction properties in Kochi.
The company has upcoming projects aggregating 48 million sq ft across assets class, and holds a land bank of 424 acres with potential developable area of over 42 million sq ft. “We foresee addition of close to 4-5 million sq ft of supply during H2 2018 across most major cities such as NCR, Mumbai, Bengaluru, Chennai and Hyderabad,” said Anshuman Magazine, chairman, India & Southeast Asia, CBRE.
Source: Economic Times