Prestige Group Retail

Retail is one of the four main business segments of Prestige Group, along with residential, commercial and hospitality. The retail business covers malls, multiplexes, F&B, luxury stores and performing arts spaces. Forum is the main retail name used across many of these developments.

This means Prestige has 13 million sq. ft. of retail space under ongoing and upcoming development, apart from its 10 million sq. ft. of completed retail projects.

Prestige lists 5 ongoing retail projects covering about 5 million sq. ft. These projects are spread across Bengaluru, Mumbai, Hyderabad and NCR. The list includes large Forum malls with different completion schedules.

Among these, Forum @ TPC Hyderabad is the largest by developable area at 1.71 million sq. ft. Forum TPC Bengaluru follows at 1.27 million sq. ft., while Forum North Bengaluru has 1.13 million sq. ft.

Prestige has another 8 retail projects in its upcoming pipeline, with a combined developable area of about 7.65 million sq. ft. The Prestige share in these projects is about 5.60 million sq. ft.

Rental income is an important part of the Prestige retail business. The company expects its retail annuity income to move from ₹3,698 million in FY27 to ₹6,237 million in FY28. It is then projected to reach ₹8,661 million in FY29 and ₹11,255 million in FY30. The FY31 figure remains at ₹11,255 million in the investor presentation.

Prestige states a 32% CAGR for this projected rise in retail income. The increase is linked to the growth of its retail portfolio as more Forum assets enter operation.

The FY27 rental table gives a closer look at the retail assets that produce income. It lists UB City Retail, Prestige Mysore Central, Forum Rex Walk, Forum Falcon City Mall and Forum Thomsun, along with income from REIT assets.

The listed assets have a combined 1.88 million sq. ft. of leasable area and a Prestige economic-interest share of 1.39 million sq. ft. Their annualised rental income is ₹2,775 million.

Two more assets are included as incremental FY27 rentals:

• Forum Walk @ Mulund: 0.11 million sq. ft. and ₹272 million annualised rent.
• Forum North Bengaluru: 0.72 million sq. ft. and ₹651 million annualised rent.

After adding these assets, the FY27 retail portfolio reaches 2.71 million sq. ft. of total leasable area, a 2.23 million sq. ft. economic-interest share and ₹3,698 million in annualised rent.

Forum Falcon City Mall is one of the major income-producing retail assets listed by Prestige. The Q1 FY27 presentation gives it a total leasable area of 0.96 million sq. ft. Prestige has 100% economic interest in the asset.

The mall generates ₹1,490 million in annualised rental income, or about ₹149 crore a year. Among the individual retail properties shown in this FY27 rental table, Forum Falcon City Mall has the highest annualised rental figure.

This is especially relevant to the wider Falcon City location. However, the investor presentation lists Forum Falcon City Mall as an existing retail asset and The Falcon City Reserve as a separate upcoming residential project. The two should not be presented as the same project.

Prestige has a large amount of capital planned for its retail pipeline. The total balance cost to complete for ongoing and upcoming retail projects is ₹61,863 million. Prestige's share of that balance is ₹45,600 million, or about ₹4,560 crore.

For ongoing retail projects, the Prestige share of the balance to spend is ₹12,165 million. For upcoming retail projects, it is much larger at ₹33,435 million. This shows that a major part of the future retail spending is linked to projects that are still in the upcoming pipeline.

Muhammed Ali is the CEO - Retail at Prestige Group, according to the Q1 FY27 leadership list. Prestige has separate senior leaders for its residential, office, retail and hospitality businesses.

This separate retail leadership fits the size of the business. Prestige already has 13 completed retail projects and is working on another 13 ongoing and upcoming projects.

Prestige's retail plan has three clear parts: finish its 5 ongoing projects, launch or develop the 8 upcoming projects, and grow rental income as these malls become operational. The company expects retail annuity income to rise to ₹11,255 million from FY30 onwards.

The pipeline is also spread across several large markets. Bengaluru, Mumbai, Hyderabad, Chennai, Goa and NCR all appear in the ongoing or upcoming retail list. This gives the Forum business a wider market base rather than depending on one city.

Prestige Group has a large retail business built around the Forum brand. Its Q1 FY27 presentation lists 13 completed retail projects covering 10 million sq. ft., 5 ongoing projects covering 5 million sq. ft. and 8 upcoming projects covering 8 million sq. ft.

Retail income is projected to grow from ₹3,698 million in FY27 to ₹11,255 million from FY30 onwards, with a stated CAGR of 32%. Forum Falcon City Mall is one of the key existing rental assets, with 0.96 million sq. ft. of leasable area and ₹1,490 million in annualised rent.