Bengaluru-based Prestige Group, a prominent real estate developer, is set to embark on a significant expansion of its mall portfolio, marking a strategic shift in its retail business. Nearly two years after selling a majority stake in its retail segment to Nexus Malls, a Blackstone-backed entity, Prestige Group is now aiming to rebuild its presence in the mall industry. According to a senior official, the company plans to develop eight new malls over the next four years, signalling its intent to reclaim its position as a key player in the retail space.
In 2021, Prestige Group successfully divested 4.4 million square feet of retail space, encompassing seven shopping malls with an estimated value of ₹9,000 crore. This transaction allowed the company to focus on its core competencies while leveraging the expertise and financial support of Nexus Malls. However, with a renewed vision and market opportunities in mind, Prestige Group has decided to embark on a growth trajectory, aiming to expand its current retail portfolio from 2 million square feet across four malls to an impressive 9 million square feet across twelve malls within the next four years.
The decision to rebuild its mall business aligns with Prestige Group’s strategic objectives and reflects the company’s confidence in the retail sector’s future prospects. Despite the challenges faced by the industry, including the rise of e-commerce and the impact of the COVID-19 pandemic, the company believes in the enduring value and importance of physical retail spaces. The expansion plans signify Prestige Group’s commitment to creating modern, experiential, and customer-centric destinations that cater to evolving consumer preferences.
Prestige Group’s forthcoming mall developments are expected to contribute significantly to the retail landscape in key cities across India. The company aims to create vibrant retail destinations that seamlessly integrate shopping, entertainment, dining, and leisure experiences. By leveraging its expertise in real estate development, Prestige Group intends to design and construct malls that offer a diverse mix of renowned national and international brands, innovative concepts, and immersive experiences to attract a broad spectrum of consumers.
The strategic expansion plan demonstrates Prestige Group’s confidence in the potential for growth and profitability in the retail sector. The company’s decision to increase its mall footprint comes at a time when the industry is witnessing a gradual recovery from the impacts of the pandemic. As consumer confidence returns and economic activities regain momentum, Prestige Group is positioning itself to capitalize on the evolving retail landscape and tap into the pent-up demand for immersive shopping experiences.
The successful execution of this ambitious mall expansion plan will require meticulous planning, efficient execution, and strong partnerships. Prestige Group intends to collaborate with renowned architects, designers, and consultants to ensure that each new mall is an architectural marvel that blends seamlessly with its surroundings. Moreover, the company aims to forge strategic alliances with leading retailers and brands to curate a compelling tenant mix that caters to the diverse preferences of shoppers.
By enhancing its mall portfolio, Prestige Group aims to not only create a thriving retail ecosystem but also contribute to job creation and economic growth in the regions where the malls are located. The development of new malls will generate employment opportunities across various sectors, including construction, operations, and retail. Additionally, the increased footfall and consumer spending within these malls will have a positive cascading effect on the local economy, benefiting ancillary businesses and service providers.
Prestige Group’s decision to rebuild its mall business underscores its long-term vision and commitment to delivering world-class retail destinations. The company’s track record in real estate development, combined with its understanding of consumer trends and preferences, positions it well for success in the evolving retail landscape.
