Prestige Estates is planning to split its business into four separately listed entities covering hospitality, office, retail and residential assets. The company is also looking to expand its hotel portfolio from around 1,450 keys to nearly 5,500.
Speaking to NDTV Profit, Chairman and Managing Director Irfan Razack said "If we list the office business, list the retail business as well as the hospitality business, then it becomes four separate companies that will be doing business, and then maybe they'll have the same value in their own right."
He also said that the company is more than just a residential developer and that its different businesses could command higher valuations as separate listed entities.
The hospitality arm, which recently secured a Rs 3,000 crore investment from Canada's CPP Investment Board (CPPIB) for a 28% stake in Prestige Hospitality Ventures, is central to this plan.
Razack described the segment as "capital guzzler number one," but said the fresh capital would give the company "bigger bandwidth" to expand rapidly without further dilution.
Prestige currently operates around 1,450 hotel keys across its operating assets and is building a pipeline that could take the portfolio to nearly 5,500 keys, supported by strong demand across its hotel properties.
While speaking about the broader roadmap, Razack said FY30 could be a key milestone, when the group's office and retail projects currently under construction are expected to mature.
ALSO READ: Prestige Estates Plans Rs 60,000-Crore Launches, Holds Rs 90,000-Crore Land Pipeline
He said Prestige's office portfolio alone is projected to generate an annual rental exit run-rate of about Rs 2,800 crore by then, with retail malls expected to contribute close to Rs 2,000 crore.
Razack said the hospitality business would be spun off and listed only once its asset base matures further, with an investor from CPPIB expected to join the Prestige Hospitality board once the transaction concludes. "I'm not saying that number will be stagnant.
There will be opportunities that will keep coming all the time," he said, referring to the target of 5,500 keys.
The comments come as Prestige works through CCI approval for the CPPIB transaction, before moving to definitive agreements.
Razack said the eventual listings across business verticals would allow each unit to be valued independently, unlocking capital currently embedded within the diversified group structure.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
