Prestige plans ten Forum Malls in south

Bangalore-based Prestige Group's retail push through the 'Forum Mall' brand is getting bigger.

The company is planning to build 10 malls for Rs 2,000 crore in Hyderabad, Chennai, Kochi, Mangalore and two in Bangalore. These would come up with shopping, entertainment, multiplex and parking complexes and would be fully functional by 2010.

"Once we execute these 10 malls, we will be in a position to expand into other tier II cities in south India with another 30 malls by 2015," said Irfan Razack, chairman and managing director, Prestige Group.

To fund this retail expansion, the company plans to fund 40 per cent from internal accruals and the balance through a mix of bank borrowings and private equity (PE). "We have been approached by a lot of PE funds, but we are yet to firm up plans," he added.

The Hyderabad project is worth Rs 300 crore and will have 8 lakh sft of leasable area; Chennai (Rs 300 crore) and 6 lakh sft of leasable area; Kochi (Rs 350 crore) and 7 lakh sft of leasable area and Mangalore (Rs 200 crore) and 4 lakh sft of leasable area.

In Bangalore, the company is planning to build two malls with a budget of over Rs 500 crore - one with Forum Mall format and the other will be a 'value format' mainly to house factory's seconds or one season old clothing and accessories.

UB City Forum Mall on Vittal Mallya road in Bangalore will be a one-lakh sft high-end shopping area, which will house top retail brands like Louis Vuitton, Gucci and Cartier in addition to a few Indian brands. The mall will be ready by early 2008.

Razack, without disclosing the revenue targets this fiscal, said the group, in 2006-07, had revenues of Rs 550 crore. It is planning to invest around Rs 3,000 crore in 2007-08 and is expecting bulk of the revenues to come from a mix of retail (mall), residential and hospitality projects.