Prestige Group Charts REIT Path, Seeks Strategic Capital for Grade-A Office Growth

Bengaluru-based Prestige Group is accelerating plans to scale up its Grade-A office portfolio as it engages with strategic investors, including large global funds, with a long-term goal of launching a real estate investment trust. The move reflects a broader shift among leading Indian developers to institutionalise commercial real estate assets and unlock long-term liquidity through stable annuity income.

Senior management at Prestige has indicated that discussions are underway with multiple potential partners who can provide growth capital while reducing reliance on promoter equity. While global private equity major Blackstone is seen as a natural fit given its deep exposure to India’s commercial real estate and sponsorship of multiple listed REITs, Prestige is understood to be evaluating a wider pool of strategic investors.

The group has prior experience partnering with institutional capital. In 2021, Prestige monetised a 17 million sq ft portfolio of office and retail assets through a large transaction with Blackstone, underlining its ability to execute and exit at scale. More recently, the two have jointly invested around ₹2,300 crore in the first phase of Prestige Lakeshore Drive at Bellandur, Bengaluru, a 32-acre office development with nearly 3 million sq ft of leasable space. The project is also aligned with global capability centre demand, with a GCC planned on campus.

Infrastructure-led placemaking has become a defining strategy for Prestige’s office developments. At Lakeshore Drive, the developer is integrating mass-transit connectivity through a dedicated flyover from the Outer Ring Road and a metro station acquisition, reflecting a growing trend where office campuses are designed around seamless urban mobility.

As demand from multinational occupiers and GCCs rises, office tenants are placing greater emphasis on institutional-grade assets, clear titles, sustainability, and employee experience. Prestige expects this trend to support steady leasing momentum across Bengaluru and Mumbai, where it is advancing large office projects in prime business districts with metro access.

Looking ahead, the group is targeting a sharp increase in rental income, supported by new deliveries and sustained leasing. Management estimates annual rental income additions of about ₹1,000 crore from assets under development, with total rental income projected to cross ₹3,250 crore over the next five years. This annuity-led growth is expected to strengthen Prestige’s balance sheet and lay the groundwork for a future REIT listing, positioning the company among India’s leading institutional office platform owners.