Prestige Eyes Four Separate Listings As It Scales Hospitality To 5,500 Keys: CMD Razack

Prestige Estates is working on a plan to split into four listed firms. Each one would cover a different line of work. These are hospitality, office, retail, and homes. Chairman and Managing Director Irfan Razack shared this plan in a recent talk.

Razack said the group is more than a home builder. He believes each arm could earn a higher price once it stands on its own. "If we list the office business, retail business, and hospitality business, we get four firms," Razack said. He added that each one could hold its own value.

If you follow Prestige Group, this marks a big shift. The firm built its name on homes. But its office, retail, and hotel arms have grown big enough to stand alone now.

Hospitality Is the Fastest-Growing Arm

The hospitality business sits at the heart of this plan. Prestige Hospitality Ventures recently got a Rs 3,000 crore investment. Canada's CPP Investment Board, or CPPIB, put in this sum. In return, it holds a 28% stake.

Razack called hospitality "capital guzzler number one." Hotels need heavy spend upfront. They take time to turn a profit. Still, he said the new capital gives the firm more room. This will let Prestige Group grow the segment fast. It can do this without more dilution.

The firm runs around 1,450 hotel keys today. It plans to grow this to close to 5,500 keys. Strong demand across its hotels backs this plan.

Razack made one thing clear. This number is not fixed. "I'm not saying that number will be stagnant," he said. "There will be opportunities that will keep coming all the time." He meant the 5,500-key target could grow further.

The hospitality arm will not list right away, though. Razack said Prestige Group will spin it off later. It will list only once the asset base grows more. A CPPIB investor will join the Prestige Hospitality board once the deal closes.

Office and Retail Set to Mature by FY30

Razack named FY30 as a key year for the group. By then, office and retail projects now under work should mature.

He expects the office arm to earn about Rs 2,800 crore a year in rent by FY30. He expects retail malls to add close to Rs 2,000 crore more. Together, these two arms could bring in near Rs 4,800 crore a year.

This scale shows why Prestige Group sees worth in listing each arm alone. A pure office or retail firm often trades at a different price than a mixed builder does. Investors can price rent and growth more clearly when each business stands apart.

Where Homes Still Fit In

Homes remain the base of Prestige Group's work. This holds true even as it builds out these other arms. The firm keeps launching large townships across South India and beyond. Projects like Prestige Parklane in Devanahalli show this scale well. Prestige Parklane spans over 32 acres. It forms part of the group's bigger push into North Bengaluru.

Prestige Parklane sits inside the KIADB Aerospace Park in Devanahalli. It offers 1,788 homes across nine towers, with prices starting from Rs 65 lakh. This scale shows how Prestige Group builds large, planned communities. It does this even as its non-residential arms grow just as fast.

If this four-way split goes ahead, homes would likely get their own listed firm too. That would let investors back Prestige Group's housing pipeline on its own. They could do this apart from its hotels, offices, and malls.

What Comes Next

The firm is now working through CCI approval for the CPPIB deal. Once cleared, Prestige Group will move to sign final agreements for the hospitality stake sale.

Razack said the goal behind these future listings is simple. Each unit gets priced on its own merit. This should unlock value that sits buried inside one big group today.

For investors who track Prestige Group's stock, this plan matters over the next few years. A pure hospitality listing could draw investors who track India's rising travel demand. A pure office listing could suit those who want steady rent income. A separate retail listing could draw investors who track mall footfall and spending trends. A standalone home-building firm would let investors back projects like Prestige Parklane directly.

None of these listings will happen fast. Razack himself said hospitality will list only once its base matures. The office and retail arms target FY30 as their key point. Investors should treat these timelines as goals, not fixed dates. Still, the path is clear. Prestige Group is moving from one big, mixed firm toward four focused firms, each priced on its own.

This firm started out building homes in Bengaluru. Now it plans a major shift in how it grows. Its home-building roots stay strong, as seen in projects like Prestige Parklane. Even so, hospitality, office, and retail now carve their own paths toward public markets.

FAQs