Bangalore-based real estate developer Prestige Group is eyeing the mid segment this fiscal with 90 per cent of its planned projects in this space. The company is planning to launch 12-15 projects this year.
“We had delivered 17 million sq ft last fiscal, which saw net sales of Rs 1,300 crore. Of these, revenues from the residential segment amounted to Rs 1,000 crore,” Venkat K. Narayana, chief financial officer, Prestige Group, said. The rest came from hospitality and commercial projects, reports Business Line.
According to Narayana, this year the company plans to develop 13-15 million sq ft.
The company has four residential projects in the pipeline in Bangalore and a large development planned in Chennai. Most of these projects would be in the Rs 20-60 lakh segment, depending on the unit size. This is in contrast to the company’s launches last fiscal, which included Kingfisher Towers and The White Meadows, which were in the upscale and luxury villa segments.
“We are targeting net sales of Rs 1,600 crore this year, of which 75 per cent would come from the residential segment,” he said. The construction cost for these projects would be around Rs 850-900 crore.
On funding for these projects, Irfan Razack, chairman and managing director, Prestige Group, said the company would raise funds either through equity infusion at the project level or project financing for the non-residential segment. For the residential segment, funding would be met through internal accruals.
Around 70 per cent of the company’s hospitality, special economic zone projects and capital expenditure would be met through this route, explained Narayana.
In 2010-11, Prestige Group raised Rs 1,200 crore through an initial public offer (IPO), of which, the company had unused proceeds of Rs 360 crore as on March 31, 2011. The company’s debt to equity ratio stood at 0.49 as of the same period. Prestige Group is exploring joint development of projects in Kochi, Chennai, Mangalore and Bangalore, said Razack.
“Our Forum Mall in Chennai, with a total space of one million sq ft, will be operational this year,” he added. According to him, the company has seen 30 per cent commitment for its upscale residential project — Kingfisher Towers — that offers 75 apartments in the Rs 16-25 crore range in Bangalore
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