Prestige Group plans to sell plotted projects

Wednesday 20th February, 2019

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Publication  Mint
Source  Madhurima Nandy
CCM  42.92
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Prestige Group plans to sell plotted projects
Madhurima Nandy madhuri man BENGALURU
eal estate firm Prestige R group-plans to develop housing plots and sell individual office units to investors, a top company executive said. Both the st tate gies are expected to generate quicker cash flows and attract investors. The bengal uruk kk based developer is revisiting the plotted development strategy after nearly two decades. InHyderabad, Prestige has a 4l-acre plotted project, which was acquired in an auction Prestige Group CEO Venkat K. Narayana.
launch two commercial office projects in Bengaluru, where it will sell portions in so-called
some time ago, CEO VenkatK. strata sales. both projects are a Narayana said in an interview. little over 3 million sq. ft each. It will also sell a sizeable num- Strata sales in our office ber of plots, across projects will 40 acres or so, at Prestige Group ensure some cash its 180-acre inte-plans to launch 2 flows. Also, we grated township commercial office dont need to own off Sarjapur Road projects in everything we in Bengaluru. develop. Thereis Bengaluru, where ted devel -. i a lot of investor opment projects it will sell portions interest in buying costing 25-80 to investors office space
lakh per plot have seen robust demand, even as apartments struggled to find takers. Mumbai's Godrej Properties Ltd also launched its first plotted project in Bengaluru recently. Investors are buying plots from established developers, who have recently entered this segment, prompted by the swift sales and easy exit from a sales point of view.
Prestige, which has over 6 million sq. ft of office space across nine projects under development, according to its investor presentation, plans to today. Going forward, we plan to own around 75 % of our office portfolio and sell the remaining 25 % ,'' Narayana added. Ultra-rich individuals are seeking a larger pie in India's booming commercial office real estate, as the sector gets more organized. They are not only buying office space directly from developers, but also investing through fund houses that buy rental assets, besides eyeing real estate investment trusts (REITS), which make such investments secure and yield better returns.