Prestige Estates is considering a major restructuring of its business that could result in four separately listed entities covering hospitality, office, retail, and residential assets, Chairman and Managing Director Irfan Razack said.
The Bengaluru-based real estate company is also targeting a significant expansion of its hospitality portfolio, with hotel inventory expected to rise from around 1,450 keys currently to nearly 5,500.
Razack said the proposed structure could allow each business vertical to operate and be valued independently. He said, “If we list the office business and 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 highlighted that Prestige is more than a residential developer, suggesting that its individual businesses could command higher valuations if separated into distinct listed entities.
The hospitality business is a key component of the proposed restructuring. Prestige Hospitality Ventures recently secured a Rs 3,000 crore investment from Canada’s CPP Investment Board (CPPIB) for a 28% stake in the business.
Razack described hospitality as “capital guzzler number one,” while noting that the new investment would provide the company with “bigger bandwidth” to accelerate expansion without requiring further dilution.
Prestige currently operates around 1,450 hotel keys across its operating assets. However, the company is developing a pipeline that could increase its total portfolio to nearly 5,500 keys, supported by strong demand across its hotel properties.
The broader business roadmap also points to FY30 as an important milestone. According to Razack, the group’s office and retail projects currently under construction are expected to mature by then.
Prestige’s office portfolio is projected to achieve an annual rental exit run rate of about Rs 2,800 crore by FY30, while its retail malls are expected to contribute close to Rs 2,000 crore.
The hospitality arm, meanwhile, is expected to be spun off and listed after its asset base matures further. An investor from CPPIB is also expected to join the Prestige Hospitality board once the transaction concludes.
Razack indicated that the nearly 5,500-key target could continue to evolve as new opportunities emerge. “I’m not saying that number will be stagnant. There will be opportunities that will keep coming all the time,” he said.
The proposed restructuring comes as Prestige awaits CCI approval for its CPPIB transaction before proceeding with definitive agreements. The company believes separate listings could enable investors to value each business independently while unlocking capital currently embedded within its diversified corporate structure.
If executed, the proposed restructuring would mark a significant shift in Prestige Estates’ corporate strategy, separating its residential, office, retail, and hospitality businesses while allowing each vertical to pursue its own growth and capital strategy.
