According to reports from NDTV Profit, Prestige Estates is planning to split its business into four separately listed entities covering hospitality, office, retail and residential assets. Chairman and Managing Director Irfan Razack explained that listing these businesses separately would allow them to operate independently and potentially command higher valuations as standalone entities. As Razack told NDTV Profit, "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." The company currently operates as more than just a residential developer, with different business segments having the potential to achieve higher valuations when separated.
The hospitality arm is central to the company's expansion strategy, with plans to expand the hotel portfolio from around 1,450 keys to nearly 5,500 keys. The hospitality segment recently secured a ₹3,000 crore investment from Canada's CPPIB for a 28% stake in Prestige Hospitality Ventures. Razack described the hospitality segment as "capital guzzler number one," but noted that the fresh capital would provide the company with "bigger bandwidth" to expand rapidly without further dilution. The company 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.
According to NDTV Profit, Razack indicated that FY30 could be a key milestone when the group's office and retail projects currently under construction are expected to mature. The office portfolio alone is projected to generate an annual rental exit run-rate of about ₹2,800 crore by then, while retail malls are expected to contribute close to ₹2,000 crore. Razack emphasized that "I'm not saying that number will be stagnant. There will be opportunities that will keep coming all the time," referring to the target of 5,500 keys. 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.
The eventual listings across business verticals would allow each unit to be valued independently, unlocking capital currently embedded within the diversified group structure. Razack emphasized that the company's hospitality business would be spun off and listed only once its asset base matures further, with opportunities expected to keep coming to reach the target of 5,500 keys. The comments come as Prestige works through CCI approval for the CPPIB transaction before moving to definitive agreements. The strategic restructuring aims to maximize value across all business segments while maintaining the company's diversified portfolio approach.
