One of the biggest real estate developers in South India, Prestige Estates, is looking to venture into the Mumbai real estate market soon. As per reports, the company has chosen a land parcel located in a prime Mumbai location for its first project. Prestige Estates is helmed by its Chairman Irfan Razack and is based in Bangalore. The company has several landmark residential and commercial projects under its belt along with projects in the hospitality category in addition to golf courses and shopping malls.
Prestige Estates has already completed more than 200 buildings and approximately 70% of these are situated in Bangalore. It also possesses a Crisil DA1 rating. The company is expected to finalize the deal for the land parcel within the next month or two. The company is planning this project in Byculla and will target a 500, 000 sq. ft. residential venture which could be worth approximately Rs. 12 billion. The company is expecting to charge anywhere between Rs. 25-30, 000 per sq. ft. at this project.
Prestige Estates was previously engaged in a deal for an IT venture at Airoli although this has not materialized yet. The Byculla project is certainly going to happen as per reports. The partner at the project is the NCCCL (New Consolidated Construction Company Limited) and the deal terms will have Prestige Estates paying around half of the value of the land which is more than Rs. 2 billion as per estimates. NCCCL will be offering on-ground project management as part of this deal.
Mumbai is a difficult market to leverage for several real estate developers. In the past, DLF debuted in the market by shelling out $160 million for 17 acres of prime mill land in the city. However, this land was sold to Lodha Developers at four times of the price around 6 years later. DLF chose not to take up project construction. However, Prestige is optimistic about Byculla and its potential for development. Additionally, experts feel that domination of regional developers is a thing of the past since Godrej Properties dominates the NCR realty market and DLF is the biggest developer of commercial spaces in Chennai.
Prestige Estates is looking to offer competitive pricing to customers along with timely project delivery. Prestige Estates has a consistent track record and pan-Indian presence, something that should work well for the brand when it finally forays into the Mumbai real estate market.
