Prestige Group: A name synonymous with innovation

Witnessing the exponential demand of high-rise buildings in India, the Prestige Group, the second largest developer in India with a strong portfolio across the Residential, Commercial, Retail, Leisure and Hospitality segment, has built some landmark vertical buildings, strictly adhering to all norms related to safety and sustainability. Irfan Razack – CMD, Prestige Group in an interview with Maria R shares his views about the Indian real estate market, prospects & challenges of high-rise construction, innovative technologies adopted for quality and timely project completion and many more things.

Prestige Group has come a long way since its inception. How has the journey been so far?
It has been a very exciting journey, filled with many learnings and different experiences, each of which has taught me an invaluable lesson about some aspects of life. I am satisfied with my journey so far but I have a long way to go. If there are no more goals, then there is nothing left to motivate a person. I feel like life has just begun as there is still so much I want to do.

The Prestige Group is currently the second largest developer besides the only CRISIL DA1 rated Developer in India and has received the financial rating of 'A' by ICRA. Headquartered in Bangalore, we have in recent years taken our expertise to other cities across South India, including Chennai, Hyderabad, Kochi, Mangalore, Mysore, and Goa. This year is a milestone year for us as we are looking at launching an IT Park in Pune.

Combined-UB City

The turning point of my career was the day I realised that I am creating value for people. I believe that real estate is the only commodity that continues to be safe to invest in, unlike shares or stocks. Real estate offers no short-term bets but it pays multifold over the long-term. This fact is evident when one compares any property that was bought about ten years ago with its current value. Such customers have seen a minimum growth of 3 times their investment in returns. As developers, we have the privilege of giving people one of their most precious assets - a Home. At Prestige, we have been trying to create quality homes for people for over 3 decades now and my biggest satisfaction comes from happy customers who tell us that they have earned significant returns on their investment in Prestige homes. Over the years, we have also created assets for cities via Tech Parks, Malls, Hotels etc. and contributed to the overall economic growth of South India, in particular, Bangalore. People live in our homes, work in our offices, visit our malls, hotels and spas for recreation. In some way or the other, we have managed to touch people's lives.

Please tell us about some landmark projects the Group has executed so far and the new projects planned for 2016?
The Prestige Group has become a name that is synonymous with innovation. The company has pioneered many landmark developments and introduced many firsts in South India such as Prestige Acropolis, Prestige Ozone, the Forum Mall, Forum Value Mall, the Collection, UB City, Prestige Golfshire, Prestige Shantiniketan, etc.

Our noteworthy projects under construction include:
Kingfisher Towers, Prestige Lakeside Habitat, Prestige Edwardian, Prestige Hermitage, Prestige Summer Fields, Prestige Silver Springs in Chennai, Prestige Leela Residences, Prestige Kenilworth, etc.

Apart from these, we also have two more Disney themed residences coming up – Prestige Hillside Gateway in Kochi and Prestige High Fields in Hyderabad. Another significant property coming up in Hyderabad is Prestige Ivy League – located in the Kondapur Village, between the Google and TCS E-park building. This project is a premium high-rise residential development that offers a combination of 2, 3, and 4 BHK apartments in a cluster of 3 towers with 366 flats.

In addition, 6 more 'Forum' malls are coming up in Bangalore, Kochi, and Mysore. Covering around 3mn sq.ft. overall, they will be completed over the next 3 years.

What are the new technologies employed in your projects to create the landmark structures?
Technological advancements used by the Prestige Group include:

a) Aluminium Shuttering Systems / Concrete Wall Technology
This is being employed in a number of our large residential developments since it allows for a faster method of construction. Although this system requires a more comprehensive approach at the planning stage, it results in quicker casting cycle time as the walls and slabs are cast at the same time. It also brings about a significant reduction in the required labour as well as man-hours. Moreover, the quality of construction is much better as a result of better planning and accuracy on-site.

b) Unitised Glazing and Curtain Wall Systems
Prestige is one of the first in the city to adopt this technology in one of our hospitality projects. This system allows for a superior quality of construction of the external facade, and is used effectively in tall buildings where facade design is a key highlight.

c) Diaphragm Wall Technology
This technology is being used in some of the projects that are located in city centres, where deep excavations are required. However, while doing this, the safety of existing structures in the vicinity have to be kept in mind. Diaphragm walls are constructed to help in the ease of excavation and construction.

Prestige Neptune's Courtyard

"Our residential segment has always fared well, even when markets were fluctuating. We have performed very well in the commercial segment as well and are also earning very significant rentals through our malls and offices. Hence, it is a mix of elements that is driving business volumes for us."

How do you see the prospect of high-rise construction in India? What are the major challenges of such construction?
India still needs to go a long way before sustainable high-rise buildings can be seen more as a norm than as an exception to the rule. The FAR norms also play a crucial role in affecting the construction of these buildings. Within Bangalore, the city infrastructure needs to be upgraded to support such buildings.

Also unfortunately, India still faces certain basic challenges like enforcing strict norms with regard to fire safety, disaster management, structural safety, environment etc.

With regard to Bangalore, in the past several years, the city has witnessed rapid development as a result of the IT boom. The city has witnessed migration of people from other parts of the country, which has resulted in its exponential growth. With the city centre getting increasingly saturated, vacant land has become a scarcity. Hence, there is an increasing need to make most of the limited space available. And, the most logical solution is high-rises as they can accommodate maximum space under the given circumstances while providing the option of maintaining open spaces around the development.

Given the need for high-rise buildings in today's scenario, we, at Prestige, have attempted to create some landmark high-rise developments while keeping in mind and strictly enforcing all norms related to safety and sustainability.

Among our prominent skyscrapers is Prestige White Meadows. Launched in 2010, this development redefined the concept of premium living. Located in Whitefield, the IT hub of the city, Prestige White Meadows comprises 214 Sky Villas in four high rise towers of up to 27 floors and 66 Villas set in scenic grounds. The Independent Bungalows with areas ranging from 5576 sq ft. - 6219 sq ft. are 3 storied edifices set in scenic streetscapes. The Residential Towers offer a choice of Single Level units, Duplex, Triplexes and Penthouses, with areas ranging between 6652 - 12066 sq.ft. Homes in the Residential Towers are designed as 'Villas in the Sky', thus marrying the twin benefits of undisturbed privacy and high rise splendor. This ethereal experience is enhanced in the Triplex homes, located on the upper 3 levels of the towers, which have 'floating' swimming pools.

Prestige's crowning glory in this segment is UB City. This is the single largest mixed-use development in the Bangalore CBD area. UB City has several unique features, be it its architecture, engineering, space management or illumination techniques. Comprising four medium and high-rise buildings, it is one of the first developments in Bangalore to combine commercial offices, a luxury mall, serviced residences, restaurants, food courts and cafes in one secure and well articulated composition. The Collection at UB City is home to luxury brand names that span the entire spectrum. The Piazza with al-fresco dining options and the amphitheater have redefined entertainment in Bangalore. UB City's eye-catching pinnacle makes it one of the tallest structures in the city.

Piazza Pan

Another noteworthy high-rise from the Prestige Group is Prestige Sunrise Park. Located at Electronic City, Gollahalli Village and spread across 25 acres of land, the development offers a combination of 1, 2, 2.5 and 3 BHK apartments in a cluster of 15 towers. These towers range from G+16 to G+24 structures. All amenities that are an integral part of luxury developments have been included here such as a swimming pool and Club House with a cafeteria, gymnasium, super market, banquet halls, health spas, indoor game activities etc.

One of Prestige's recent landmark high-rise developments is Prestige Falcon City. Located on Kanakapura Main Road and spread across 48.6 acres, Prestige Falcon City is slated to be one of the best developments in South Bangalore. A planned community conceived and designed to provide a vital mix-use urban centre for Bangalore's emerging twenty first century economy, this state-of-the-art development of high-rise towers comprises a conglomeration of 2,520 world-class apartments. Added to that is a massive retail area and the largest Forum Mall in Bangalore… all conceptualized by the Prestige Group. Home to a sprawling Clubhouse, an entertainment zone and a huge cultural and convention centre; every feature is benchmarked with the global best, to offer a life that is rarely obtainable elsewhere.

What are the vital aspects to be considered while planning tall buildings?
Owing to large-scale construction in urban India, there is a dearth of skilled workmen. This, in turn, has led to builders taking steps to make construction easier while also sticking to quality and timely delivery. A fine example of this is the number of shear walls and dry partition walls used wherever possible. Prestige has taken several steps to adapt to this change.

One of the biggest things to consider while sourcing building materials is the fact that natural resources are depleting on a massive scale. The Prestige Group takes a number of actions to minimize the wastage of natural resources; for instance, wood is being replaced by engineered wood and artificial sand is replacing river sand.

Some of the other things to be considered are ready-mixed concrete and plaster, application of paint using spray guns (partly for wood and internal walls), etc. In urban cities, the volume of tall buildings construction is increasingly large, so incorporating these initiatives in the planning process makes a huge difference.

What are the areas of focus that are driving business volumes?
The Prestige Group is the only developer from South India to have a strong product portfolio across the Residential, Commercial, Retail, Leisure, and Hospitality segments. Our residential segment has always fared well, even when markets were fluctuating. We are also focusing on mid-income housing, where the demand is substantial. We have performed very well in the commercial segment as well, with high volumes of leasing taking place throughout last year. We are earning very significant rentals through our malls and offices. Hence, it is a mix of elements that is driving business volumes for us. Having said that, the residential segment continues to be the primary driver of business within the Prestige Group.

Prestige Neptune's Courtyard

"At Prestige, growth and expansion is constant. We're always on the lookout for fresh opportunities and hence, we think creatively all the time to see how new initiatives can be taken up."

There is a huge inventory pile-up across cities and yet reports state that there is a housing shortage in the country. What factors do you think will help builders clear their inventory overhang and bridge the gap between supply and demand?
The huge inventory pile-up is a perception and when research reports talk about the inventory, they take into account projects which are launched and which will take 3-5 years to complete. The stock of ready inventory is less than 5 percent of the overall inventory that is under production.

When we talk about the housing shortage in the country, it is more in the low-income and mid-income groups and the builders need to address this segment to boost their business.

What will be the effect of recently passed Real Estate (Regulation & Development) Bill 2016 in the real estate market?
The RERA Act, which protects the interests of both the consumer and the developer, has been implemented and will bring in a lot more transparency and discipline amongst the developers. Especially the provision to register the project after all approvals are in place and begin sales only post that will greatly benefit customers. It will also bring about financial discipline. Keeping aside money required for construction in a separate account, will give an impetus to complete projects on time and create a safety net for the buyers of the apartments/plots. The Bill is set to change the way we do business and only serious players who are in it for the long-term will survive.

What are the investments that Prestige Group plans to make in the new fiscal (FY16-17)?
New investments are a continuous trend because the current assets in the retail, hospitality, and IT Parks segment need to get completed. We, at Prestige Group, are always on the lookout for fresh opportunities. However, we would like to consolidate our position and complete what is on hand.

What are the Company's future plans?
At Prestige, growth and expansion is constant, as change is constant. So, we have to think creatively all the time to see how new initiatives can be taken up. Last year, we actively got into the warehousing market and will be pursuing this asset class more aggressively this year. We will also be focusing on several new launches in different parts of Bangalore as well as in Chennai and Mangalore. We are launching 2-3 large-scale IT developments in Bangalore. Simultaneously, we are also in the process of finalizing a piece of land in Pune for an IT Park.