Prestige to convert mall into IT Park to meet rising demand

BANGALORE: Prestige Estates Projects that recently bought back Singapore headquarters fund CapitaLands stake in a mall project in Bangalore, is converting it into a IT business park due to lower supply in this segment.

The Bangalore based company now plans to set up 1 Mn sft IT park on the 4 acre property in The city. “There is short supply of IT space in Bangalore whereas demand is high,” said Irfan Razack CMD prestige group.

The company had earlier planned to build a retail mall on the property that it bought from Graphite India in 2008. It had formed joint venture with CapitaLands for the same.

“We bought back CapitaLands stake earlier this year,” said Razack. Prestige paid around 57 crore for the stake and now owns 80% stake in the project.

According to JLL India, office space vacancy in Bengaluru has reached its all time low due to strong demand from corporates and lower supply. The IT capital of India has mere 3% vacancy as compared to top seven cities in the country.

“The markets of NCR, Mumbai and Bangalore continue to lead the demand for corporate office space.Space utilization and innovative workplace strategies will play a large role in the expansion plans for occupiers,” said Ram Chandnani, MD – Advisory and Transaction Services, CBRE South Asia

CBRE South Asia said in a latest report that Bangalore office market saw a substantial improvement in leasing activity with more than 2 mn sft of corporate real estate absorbed in Q2 2016. The city accounted for almost 50% of country’s office leasing, primarily driven by BFSI and IT/ ITes sectors.

Prestige Group has over 24 mn sft of leased, under construction and upcoming office and retail properties currently, of this 4.36 million sq ft of office and retail properties are under construction. Additionally, it has residential projects totaling to 40 mn sft under constructions.

Credits ET Realty

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