Prestige Estates to invest about Rs 7,000 cr to develop 62.5 acre township in Ghaziabad

New Delhi: Realty firm Prestige Estates Projects Ltd will invest around Rs 7,000 crore to develop a township in Ghaziabad as it looks to expand business in Delhi-NCR property market.

Bengaluru-based Prestige Estates is building a commercial project at Aerocity in the national capital. It has also forayed into Delhi-NCR housing market by acquiring three land parcels in Delhi, Noida and Siddharth Vihar, Ghaziabad.

Prestige Group Chairman and Managing Director Irfan Razack is bullish on Delhi-NCR residential market and said there is a potential to achieve Rs 10,000 crore worth of housing sales annually if the company is able to acquire land parcels consistently.

In March, Prestige Estates Projects acquired 62.5 acres at Siddharth Vihar, Indirapuram Extension, Ghaziabad to develop a township.

The township project 'Prestige City' is expected to be launched this quarter after getting all the necessary approvals.

"We bought this land parcel for more than Rs 450 crore. We will be developing 10 million square feet of residential space in this large format project. There will be some component of retail and education as well," Razack said.

Asked about project cost, he said it should be around Rs 6,000-7,000 crore.

Razack said the land has already been purchased and the construction cost will be met through collection of funds from customers against sales bookings.

He said the company would be targeting end users primarily, offering two, three and four bed room apartments in this township project.

At the time of land acquisition, Prestige Estates had said that the company expects revenue of more than Rs 10,000 crore from this project.

Asked about other housing projects in Delhi-NCR, Razack said the company has bought one acre land parcel in central Delhi to develop an ultra-luxury housing project. The company is waiting for approvals.

That apart, he said the company few years ago tied up with a landowner for a housing project at Sector 150, Noida.

He said the Noida project has not been launched yet in the absence of approvals, but hoped that the Noida authority would soon start giving approvals in Sector 150 Noida.

On the commercial project at Aerocity, Delhi, Razack said the hotel would be completed by end of the next year.

He said the 7 lakh square feet office space in the Aerocity commercial project has been fully leased to marquee corporate clients.

Razack said the company is evaluating more land parcels in Delhi-NCR to create pipeline for future development.

"There is a huge business potential in Delhi-NCR. We can easily do sales of around Rs 10,000 crore every year in Delhi-NCR," he said.

Asked about challenges in entering a new market, Razack said the company studies local market dynamics and customers preference before foraying into new geographies.

Prestige Group, one of the leading real estate developers in the country, has a legacy of over three decades in real estate development.

It has diversified business model across various segments -- residential, office, retail, hospitality, property management and warehouses with operations in more than 13 major locations in India.

The Prestige Group has completed 300 projects spanning a developable area of 190 million square feet as of June 2024.

During 2023-24 fiscal, Prestige Estates clocks a record sales booking of Rs 21,040 crore and has given a guidance of Rs 24,000 crore for the current financial year.

Prestige Estates recorded sales of Rs 4,022.6 crore during July-September as against Rs 7,092.6 crore in the year-ago period.

During April-September, the company's sales bookings fell to Rs 7,052.2 crore as against Rs 11,007.3 crore in the corresponding period of the preceding year.