Prestige Estates have ambitious expansion plans
Prestige Estates Projects Ltd now is the second largest real estate developer by market capitalization after DLF Ltd and they have great expansion plans. They are considering expanding beyond southern India. Post the budget which was unveiled by the Finance Minister Arun Jaitley, the real estate sector is showing a lot of activities.
There is a positive market sentiment and the sector hopes that it will revive soon. After the REITs (Real Estate Investment Trusts) were launched in the budget and SEBI chalked out the guidelines for it, the developers are hoping to raise funds through this route.
Prestige Estates Projects Ltd aims to get Rs 20,000 crore of sales a year across its asset classes which include residential, commercial office and retail spaces. The chairman of this plush real estate developer Irfan Razack stated in an interview that in the next five years or so they are planning to accomplish this.
Prestige Estates is promoted by the Razack family in Bangalore and is one of the most respected builders in the southern part of India. Razack also mentioned that this expansion plan is ambitious but doable if the company adopts the right strategy. In 2013-14, this Bangalore-based real estate firm clocked around Rs 4,435 crore of residential sales. They also made Rs.300-350 crore of rental income during that period mainly from their office assets.
Source- Mint
DLF Ltd, finance minister Arun Jaitley, Prestige Estates Projects Ltd, Real Estate Investment Trusts, Real Estate Sector, REITS
