Prestige Estates plans to build, own and operate its own shopping centres and there are more malls in the pipeline, according to the group’s CMD Irfan Razack. Last month, Prestige Estates opened its first large mall after the Blackstone Group transaction and it got the company good footfalls.
Prestige Estates (PEPL) plans to launch 25msf of residential projects over the next 12 months (including 12msf in non-Bengaluru markets), which will not only help PEPL sustain its pre-sales in Bengaluru but also boost contribution from Mumbai, NCR, and Hyderabad, thereby, maintaining its pre-sales growth trajectory.
Motilal Oswal Financial Services expects PEPL to meet its FY23 pre-sales guidance of Rs 120 billion, and the same is expected to grow to Rs 126 billion in FY24. Launches from new project additions over the next 6-12m will lead to upward revisions in their estimates.
PEPL reported sales bookings of Rs 104 billion in FY22 and became the first company to breach Rs 100 billion pre-sales mark. In FY23, the company has guided for Rs 120 billion of pre-sales, of which, it has already clocked Rs 65 billion in 1HFY23.
Its residential segment did well, largely driven by Rs 70b of pre-sales by Prestige City (TPC), Bengaluru, in the last 18 months. With inventory in TPC, Bengaluru, largely exhausted, the company would have to rely on its upcoming 23msf of pipeline to sustain its pre-sales in Bengaluru.
Prestige Estates has Rs 6,500 crore of inventory in ongoing projects and Motilal Oswal has raised their FY24 pre-sales growth estimates by 16%.
The inventory coming in from Bengaluru, large projects coming in from Hyderabad, Mumbai and the contribution from smaller cities such as Kochi, Calicut put together, 2023 will be a defining year for the company.
Bengaluru-based Prestige Estates, which made its entry into the Mumbai market just a couple of years back, was among the top sellers at its project in the central suburb of Mulund with sales worth Rs 883 crore in 2022.
