Prestige Group eyeing on Adding 10 million sqft Office Space in Bengaluru

Bengaluru based Real estate Giant Prestige Group is planning to develop 28 million sq ft (msf) of office space in Bengaluru within the next five years. All-together, they have chalked down to invest in developing 40 msf, garnering annual revenues to the tune of Rs. 3,000 crore, across multiple cities, after selling off some of its office, retail and hotel assets to Blackstone Group Lp.

Presently in Bengaluru, the company’s under construction inventories measurs about 15 msf, and in two financial years, they are planning to add 10msf more.  He said, that, last year the office sector as an asset class had crossed pre-Covid leasing of 56 msf, with the GCC (global capacity centre) sector bouncing back strongly.

CEO of Prestige Office Ventures, Juggy Marwaha, said, “In the 40 msf pipeline, about 7 msf will be in Mumbai, 1 msf in Pune, 0.5 msf in Delhi, and 2 msf in Hyderabad and Chennai each.”

Marwaha further added, “Specifically, we are looking at locations such as Hebbal, Bellandur, Whitefield and Varthur. The 40 msf pipeline will have about 60-70 percent of large business parks, while the rest will be standalone office spaces in CBD areas.”

This time, the company is eyeing on specific locations like north Bengaluru, Outer Ring Road, east Bengaluru and the central business district (CBD). Last year, the company leased about 2 msf in Bengaluru, 1 msf in Pune and 0.5 msf in Chennai.

Marwaha explained that, around October, the company had signed a Rs. 400-crore deal in north Bengaluru to develop a data centre with 100 mw capacity and they are hoping to complete the development by the end of this month. Handful of challenges, such as traffic issues and infrastructural failures in parts of Bengaluru continue to affect the office space sector, especially in places like Outer Ring Road. Though it is difficult to acquire a good amount of land parcel in the CBD area, but after the commencement of metro operation in eastern IT corridor Whitefield area, a good deal of investment opportunities started booming.