[GAGA REALTY] [JOINT VENTURE] [GAGA HOMES]
Bengaluru-headquartered real estate developer Prestige Group is targeting Rs 10,000 crore in annual revenue from the National Capital Region from as early as next financial year as part of its aggressive expansion plans in the region, chairman and managing director Irfan Razack said. The company, which currently generates no revenue from the NCR, is expected to launch a mid-segment project in Ghaziabad, an uber-luxury project along Kasturba Gandhi Marg in Lutyens’ Delhi and has an under-construction hotel and office project at Aerocity near the capital’s airport.“I believe that the NCR market, if we approach it correctly, and with the type of projects we have along with properly growing the pipeline, has the potential to generate Rs 10,000 crore in sales annually,” Razack told ET.The Prestige Group earlier this year acquired 62.5 acres of prime land at Indirapuram in Ghaziabad for Rs 468 crore.Its project at Indirapuram spans more than 10 million square feet of saleable area, with a projected gross development value surpassing Rs 10,000 crore.Along Delhi’s KG Marg, the company acquired a 5,100-square-yard plot from TDI Infratech. “We are waiting for approval. This will be a very high-end project, with each of the 10-12 apartments sized between 5,000 and 6,000 square feet,” Razack said.The company has the potential to generate Rs 7,500 crore in annual sales from Hyderabad, Rs 15,000 crore from Bengaluru and another Rs 10,000 crore from Mumbai, he said. “In Mumbai, we can’t just focus on high-end luxury projects. We need to grow the pipeline with more projects in the suburbs where price points are slightly lower,” he said. “High-end luxury products don’t sell every day, and the buyers are very different. The demands of a luxury customer are nuanced, and having done luxury projects in Bangalore and other cities, we understand these needs.”The company is also awaiting government clearances for a project in Noida’s Sector 150.The group, which is active in the hospitality business, is also looking to add hotels in spiritual cities such as Varanasi, Tirupati and Ayodhya.Prestige recently raised Rs 5,000 crore by selling shares to institutional investors to primarily reduce debt and acquire assets to expand its portfolio nationwide.It plans to invest Rs 16,000 crore to fuel growth and aims to sell Rs 50,000 crore of residential assets over the next five years.The company plans to have at least 50 million square feet of projects in its pipeline annually over the next three to five years in cities such as Mumbai, Bengaluru, Pune, Chennai, NCR and Hyderabad. In the last six quarters, it has acquired land worth Rs 6,000 crore in NCR, Mumbai, Hyderabad and Bengaluru.It has completed more than 300 projects with a developable area of over 180 million square feet across segments including residential, office and retail.
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