Prestige Estates Projects Ltd, a real estate firm, has acquired 62.5 acres of land in Indirapuram Extension, Ghaziabad, to develop a township, with a revenue potential of ₹10,000 crore on this land. The acquisition, costing ₹468 crore, along with a revenue share, will result in a large-scale project covering 10 million sq ft of saleable area.
The company plans to launch the project in the next two quarters and complete it in four years. The acquired land will be utilised primarily for residential purposes, with additional amenities such as education and retail, the filing states.
The project will be branded as 'The Prestige City,' following the successful model implemented in Bengaluru, Mumbai, and Hyderabad, offering residents a holistic lifestyle within a large township comprising residential, retail, educational, and recreational spaces, it adds.
Irfan Razack, chairman and managing director of Prestige Group, says, “Extending 'The Prestige City' brand to NCR following its resounding success in Bengaluru, Mumbai, and Hyderabad underscores our group's commitment to offering large-format integrated townships and developments.”
CEO Venkat K Narayana says that the company looks forward to launching the project in the next two quarters and completing the development in 4 years.
Prestige Group, with over three decades in real estate development, operates across various segments such as residential, office, retail, hospitality, property management, and warehouses in more than 12 major Indian locations. The group has completed 300 projects covering a developable area of 188 million sq ft.
In February, Prestige Estates Projects Ltd. (PEPL) released its Q3 results, revealing a 23% year-on-year (YoY) decline in revenue due to project completion delays. As a result, Profit After Tax (PAT) decreased by 9% YoY. The company reported total pre-sales of ₹5,326 crore, marking a 111% YoY increase in booking value, with an average realisation of ₹9,762 (up 13% YoY).
Prestige Estates Projects Ltd. (PEPL) is India's leading real estate developer in terms of booking value. Its expansion is driven by a diverse portfolio spanning tier 1 and tier 2 cities with a diversified portfolio.
Amid this development shares of PEPL rose 6.7% to ₹1,097 apiece on BSE today. Brokerage firm Geojit, in its February report on Prestige Estates, says given the substantial presale volume and favourable performance in all segments, the outlook on the stock appears promising.
The brokerage has downgrade its rating on PEPL to "HOLD", with a revised target price of ₹1,295 based on 3.7x FY26E BVPS.
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