Page 29 - Construction Vision Sep-Oct 2017 issue

P restige Group , one of the largest ways to grow the portfolio. One way is to do definitely be absorbed. Bengaluru has been
absorbing something like 30 million sq ft
it on your own and the other way is, at some
listed real estate companies in the
every year. So if the 30 drops to 11or to 12,
point of time, if you want to get somebody to
country, is gearing up for greater
things given that the uncertainty caused by partner you, you can. So, that way, there is it's not going to be a big change. You have
the Real Estate Regulatory Act (RERA) and less reliance on debt and you get earnings cycles in every business. And I don't think
the Goods and Services Tax (GST) is behind quickly. Prestige Estate Projects' income that much supply is coming in. So we have
us. The company recently concluded a from retail and commercial properties is to have our ear to the ground and build not
corporate restructuring to take the business expected to reach. 1,700 crore in the next in secondary areas, build in the prime areas.
to the next level. three-four years from Rs 750 crore at
present. The company has 65 ongoing Do we expect industry to go on the
commercial projects, comprising around recovery front right now?
What is the status of corporate
56.94 million sq ft.
restructuring at Prestige Group?
In the last two quarters there were a lot of
The IT industry is going through a uncertainty due to RERA and GST. With that
The restructuring got completed this March
slowdown. Can we expect absorption to what happens is customers also try to hold
31.Now we have got separate verticals
pick up? back. But I believe going forward, there is no
office, retail, hospitality and residential.
more suspense.
Prestige Estate Projects is the holding
Today, commercial space vacancy is less
company for all these special purpose
than 5% and there is not too much supply
vehicles. So, there is no dilution in
coming in.Whatever supply that comes in will
ownership, there is no change in
ownership, it's all the same.
Why was the business vertical
separated?
As far as we are concerned, there is no
major shift in what we will be doing, except
that we have segregated the businesses
more for reporting and proper monitoring
and management. There will be people
heading each of these verticals, with more
power, not only to manage but also to grow.

Do we see Prestige raising capital
against these new business verticals?

At the moment, there is nothing. But then
it's business; it could happen anytime. It's
not that it's imminent or it's not that we
have to do it or we are going to do it.
Sometimes some offers do convenience,
then we evaluate it, and we may or may not
do it. Now there are so many opportunities.
But it is not necessary that I have to
monetize immediately. It all depends on the
timing and the type of deal that you could
get.
Would you look at REIT listing?

My strategy will be to grow the office
portfolio, to get a big critical mass. We have
a substantially good portfolio. There are two

SEPTEMBER - OCTOBER CONSTRUCTION VISION 27