Ladies and gentlemen, good day and welcome to the Prestige Estates Q4 FY25 earnings conference call hosted by Axis Capital Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and zero on your touch-tone phone. Please note that this conference is being recorded. And I'll hand the conference over to Mr. Pritesh Sheth from Axis Capital Limited. Thank you and over to you, sir.
Thank you, Rutuja. Good afternoon, everyone. Apologies for the delay, but welcome to the call. We have with us the management of Prestige Estates, represented by Mr. Irfan Razak, Chairman and Managing Director, Mr. Zaid Sadiq, Executive Director, and Mr. Amit Mor, the Chief Financial Officer. I'll now hand over the call to the management for their initial comments. Thank you, and over to you, sir.
Good afternoon, everyone. And as I said, Amit and Zaid and Mr. Nayak are with me. So I'd like Zaid to do the opening call and opening comments, and then we'll take questions and answers. Zaid?
Thank you, sir. A very good afternoon, everybody, and thank you for joining us today. FY25 was a year that tested us, but if we affirm the strength in our fundamentals, while we face a few external headwinds, particularly around approvals, we are pleased to tell that we closed the year with a strong fourth quarter, delivering a meaningful recovery across seven metrics. In Q4, we recorded new sales of INR 6,957 crores, which is a 48% year-on-year growth on the back of a robust launch pipeline and solid customer response, especially to our premium offering. We sold 4.49 million sq ft across 2,301 units during the quarter. It's also worth highlighting that in this quarter, our sales in Mumbai overtook Bangalore, a significant milestone that underlined the success of our geographic diversification strategy and the growing contribution of non-South markets to our top line.
For the full year, we clocked 17,023 crores of sales. This is 19% lower than last year, largely due to the deferred launches. However, this was offset by strong pricing power. Average realization for residential apartments, villas, and commercial products rose 36% year-on-year to ₹14,113 per sq ft, while plotted developments saw a 50% year-on-year increase. Our performance was underpinned by a balanced geographic mix. Bangalore contributed 45%, Mumbai 30%, Hyderabad 23%, and other cities made up the rest.
There's a clear shift, as you can see, from our earlier years and reflects our successful expansion across our home market. Collections remained steady at 12,084 crores per year, up slightly from FY24, and launch momentum picked up sharply in Q4 with 14 million sq ft launched across four cities. For FY25, total launches stood at 25.63 million sq ft with a GDV of 26,223 crores.
Our non-residential segments continued to perform well. Gross leasing in our office portfolio was 4.1 million sq ft, with occupancy holding firmly above 90%. In retail, we saw INR 2,264 crores of gross turnover across our malls with a strong 99% occupancy and 18 million sq ft. From a financial perspective, we reported revenues of INR 7,735 crores for this financial year, impacted by slightly lower handovers during the year. EBITDA stood at nearly INR 3,000 crores, while profit after tax was INR 617 crores.
Our EBITDA and PAT margins remained healthy at 38% and 8% respectively, reflecting robust operational efficiencies. Looking ahead, we're entering FY26 with renewed momentum. Q1 has already seen a strong start with the launch of the Prestige City Indirapuram, a marquee township development in NCR with a GDV of INR 9,000 crores, of which we have already sold over INR 6,500 crores.
We also marked our maiden inaugurations in Mumbai with handover of the Prestige Jasdan Classic, Prestige Siesta at The Prestige City, Mulund, and Prestige Turf Tower at Mahalakshmi, backed by a robust pipeline of projects with an overall GDV potential of approximately INR 42,000 crores across geographies such as Bangalore, Mumbai, Hyderabad, Chennai, Goa, and NCR. We're pleased to say that we are well-positioned to scale to new heights in the coming year. I thank you for being patient, and I look forward to addressing your questions.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two.
Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Parikshit Kandopal from HDFC Securities. Please.
Hi, it's Yorvak. Congratulations on our leasing quarter. So my first question is, what is the guidance of previous guidance for FY26 now?
You can say it to the target. We're seeing now what has happened is we had kept a target of INR 24,000 crores for fiscal 2025, which, of course, we fell short of on this thing. But I think this first quarter itself will give us some INR 12-13 crores. So I believe that we should cross 25. Maybe INR 27,000 crores should be the, if not more. But I think let's take 27,000 and go along with the year.
Do you think first quarter we will do or we strike at INR 17,000 crores?
Yes, please.
Oh, wow, so now the second question comes as the velocity is so high, and we only have this in this slide, I can only see INR 42,000 crores of gross development value left to be launched. So how are you thinking about new business development, and how do you see this pipeline growing? What is the business development done in FY25, and what is your target for FY26?
Thanks, Parikshit. Yes, we have moderated our GDV pipeline, the slide that you saw to INR 42,000 crores. But this is not only what we are going to launch. This is something with absolute certainty which we can say that will come in this year. Of course, apart from this, you can see that we have plenty of other projects, which if we feel will fall short, we'll bring that also to the market, because this is something with certainty we can say that we can launch. So we have the INR 42,000 crores worth of pipeline for the year. Plus, we have another INR 10,000-15,000 which, if we can push hard, we can launch it within this year at the end of the year.
What was the business?
We have a stock of INR 20,000 crores already.
Oh, yeah. Yeah. So I can see that you've spent just about INR 5,680 crores on land and other TDRs. So what was the pure land spend in this, and what was the business development done, in terms of GDV addition for FY25?
Out of the INR 5,500 crore that we have spent on the business development, close to INR 1,500 crore was on site acquisitions. We had done a couple of site acquisitions in Q3 and Q4, including TPL Acres, PGEPL, and Konkan, Mumbai. That contributed close to INR 1,400 crore. Apart from that, we have done acquisitions, including in Bangalore region. We had acquired Phase 3 of Srinivasapura, where we have spent close to INR 400 crore. Then in the current quarter, other miscellaneous included, we have spent on Southern Star some amount we have spent on approvals. On Indirapuram, we have made some land approval payments.
So Amit, all this put together, how much would be the land addition in terms of GDV addition? So this INR 1,500 crores was state acquisition. So how much was that in terms of value of business development?
1,500. We have acquired the balance stake, and most of them we have made it 100%, and in the triple-A, we have increased our stake from 60% to 74%.
So how much did that bring the value?
additional, it would have contributed close to INR 20,000-odd crores.
So for 1,500, you have added 20,000 crores of GDV?
Yes, totally. Because if you see in these projects, especially in the Tier III , we have launched a couple of them. Like Indirapuram itself was INR 11,000 crores. And apart from that, we have other projects as well. We have Konkan City, like Sindhar. Okay. Then we had PTC Hyderabad. Then in North Village, we had acquired 40% stake. Okay. So these are some large acquisitions we have done.
Just as we've been cleaning the structure, is there anything else pending to be cleaned? Or now almost everything has fallen into the listed entity? Anything else is still pending? And if it is pending, how much would be the incremental spend to acquire that?
Now, what is pending is only in Tier III. The promoters are currently holding 24%.
Okay.
But, I don't think in the near future we intend to acquire that 24%.
Okay.
In the current financial year, we don't foresee any further spend on the site acquisition.
Okay. Just last question to inform you, sir. So now in NCR, we have already clocked INR 6,500 crores, which I think Zaid told. So how do we see this market now incrementally in terms of growth? What are our plans for business development? And over the next few years, how do you think this market will build up? And even how Gurgaon will play out here?
Actually, that's why we were trying to test out this market, and the market has really welcomed us. That shows there's a huge amount of potential here. We are currently concurrently evaluating a lot of deals that have come to us. And very soon, we should be able to lock in a few deals, sensible ones. Of course, we don't want to go berserk on this. And I think if things work out, we should be having some land in NCR, some more so that the pipeline keeps maintaining.
We do have a small piece of land in Kasturba Gandhi Marg, which again will come out to the market very soon, but then we are looking at scale, so in that scale, we have identified a few lands both in, you know, Noida, Gurgaon, all of these places, but once it's done, we'll keep going forward.
I think it's a good market. It's a good test for us. And I believe that there's enough potential. We always knew there was potential. It's only a question of we have to break the ice there. And I think we have done it and done it in style.
Sure, sir. Thank you. Those are my questions. I wish you the best.
Thank you.
Thank you. The next question is from the line of Puneet Gulati from HSBC. Please go ahead.
Yeah, thank you so much for the opportunity and congratulations on a good start. My first question is, can you also talk a bit about the rest of the 6,500 crores that you think you will spend in Q1? What are those projects?
We have ongoing projects in Bangalore, in Mumbai. We are going to launch in Chennai in June. We've got the approvals, and we are waiting for RERA to come, which will come in the first week of June. So if you really ask me, giving you a breakup, I think you have already done the talking. It will be quite a sum of the existing projects plus one launch. We also did a launch in Bangalore called the Gardenia Estates, which is open and it's like open and shut. That itself gave us about INR 1,000 crores of revenue or INR 800 crores of revenue. So I believe on the existing stock, new launches in different geographies will give us that number.
Understood. That's helpful. And secondly, you know, when I look at it on a quarterly basis, the construction spend seems to have fallen a bit on a Q1, Q2 basis. How should one read that, and what would be your sense for next year?
The quarterly spend last quarter was a little high because we had spent a significant amount on government approvals, especially on North Village, as well as on The Prestige City Indirapuram. So.
Okay.
On an average, quarterly spend only on the construction spend, on the residential segment should be in the range of INR 1,600-INR 1,800 crores per quarter.
And that is not going up because your sales momentum has gone up. So will that also go up?
No, right now, it covers all the ongoing projects. Incrementally, whatever we bring, that maybe it's likely to go up. But then whatever we launch in the financial year 2026, the major construction spend will happen in 2027. So it won't significantly add in 2026.
Understood. That is clear. The second question is on your the cash flow profile that you shared, which is free cash flow from residential project, INR 19,740 crores and INR 24,000 crores. If I look at the disclosures for Q3, the number seems to have been gone down recently. What should one attribute that to?
Basically, if I'm not wrong, last time it was 48. Now it is close to 44, 45. Now, that is basically because we had a couple of launches. Okay. So there has been a shift from the upcoming to ongoing. So if you see the breakup, the upcoming has come down, and the ongoing cash flows have gone up. Okay. But on overall basis, also, we have done collections during the quarter. And, again, most of the projects in the upcoming category are on the design phase. So we will keep revising the construction cost estimate as and when the designs are getting finalized. So it will vary, maybe by 3-4% month on month as designs are finalized.
Because cumulatively, it is down INR 5,500 crores. So just trying to understand, is that just cost changes, or is there some other?
No, no. Basically, collections also have happened. You know, we have collected, during the quarter around 3,000-3,500. That collection has reduced. Apart from that.
But this is net number, right? So collections minus construction spend, which is still a lower number, INR 1,000-odd crores from quarter perspective.
That's why I say it's a combination of collections plus revision in our estimates for our upcoming projects. It's a combination of both.
Okay.
And areas also.
And.
Areas also because we would have allocated something for the residential portion, maybe, during the design phase, if we decide if we need to include a portion of retail and all that. So those changes happen, and that impacts the cash flow profile.
Okay. Got it. Lastly, you know, Amit also alluded that there is still some stake of promoters, 24% triple tier. How do you take this call of what remains with promoters and how what eventually gets bought by the company? What is the deciding criteria if you can give some color if you are able to?
See, again, last year, after the QIP, I think so during the road shows, some of the investors had suggested that to keep the entire, I would say the structure clean and whatever is held by the promoters, we should acquire it. In that case, we have done that acquisitions post the QIP and acquired the promoters' stake in most of the entities. And, as I mentioned earlier, we have already spent close to 1,200-1,300 only on the promoters' stake. Now, acquiring the balance 24% also will require significant sum of outflows, which will put pressure on our cash flows and impact our even our debt profile. So, considering the cash outflow impact on the stake acquisitions, I don't think so in the current year, we are planning any further acquisitions.
Would you be able to give any estimated value of this number that you would have to spend if you were to acquire?
See, for acquiring 16%, we had paid close to 500. Okay. Post that, some of the projects have already launched in that entity in triple tier. So if you see, Spring Heights has got launched, okay, and similarly, Indirapuram has got launched. So if you take benchmark of 500, it will be North Village and other projects. So these projects have got launched. So what discount factor we had given for unlaunched, that no longer applies. Okay. So the valuation, if you take 500 as a basis, today the 62.4% will be valued at 800. Removing the discount factor, it will be higher. I don't think so I will be able to comment on that number, but it will be upwards of 800 crores.
Understood. And lastly, on the market side, if you can comment on the pricing environment that you're seeing and the competitive intensity on business development? That's all from my side. Thank you for all the questions. Yeah.
We believe that the pricing environment is good. Though prices have gone up, absorption has been very strong, be it in Bangalore, Mumbai, Hyderabad, or in fact, Indirapuram. Now that we've launched, we can comment on that. At the same time, we have a very balanced approach, looking at the new acquisition, where we believe that the project should fund itself. We are not very aggressive in the way we price our acquisition. Over there, we look at an EBITDA margin of 30%-35%. Based on this, we look at acquiring these assets. Even though realizations have gone up on the customer side, we are conservative when we look at new acquisitions.
Okay. That's great. So thank you so much and all the best.
Yes, sir.
Thank you. The next question is from the line of Yash Gupta from Astic Gurteja Family Office. Please go ahead.
Good afternoon, everyone. Sir, in slide number 24, GDV of the project that expected to complete in FY 2026 is around 17,000 odd crores. Is it fair to assume that we will book this revenue of 17,000 crores in FY 2026 with an EBITDA margin of 30%-35%?
It will depend on at what point in this quarter gets completed. So the revenue recognition happens on two fronts. One, the project should have got completed. And second, the handovers should have happened. Okay. So 17,000 maybe the GDV, but the handovers also we have to factor. So for example, if a project is getting completed in Q4, we may not have enough time to complete the handover. So 17,000 maybe we can apply a percentage, maybe 70%-80% of that we should be able to handle.
Anything on EBITDA margin?
EBITDA margin will be in that range. Yes. It will be in the range of 25%-30%.
Okay. And, sir, second question on Hyderabad market, how the Hyderabad market is moving forward? We have a good inventory of INR 5,200 crores there. And, we don't have any major launch in Hyderabad in FY 26 yet.
Sir, for Hyderabad, we do have some projects, which are upcoming and under planning, that is Prestige Rock Cliff and Prestige Imperial Park. This we'll try to bring in in this financial year. Actually, also acquiring.
Acquiring.
Acquiring the block is developed.
Development.
And we've also tied up a deal for about nine million sq ft of residential, which is again a great location. So all this is work in progress, but these two are the major launches that are going to come.
Okay, sir. Any thoughts on the completion of Aerocity and the launch of Jijamata in Mumbai? Is there any delay in two projects?
No, no, there's no delay at all. In fact, Aerocity is on track. In fact, the office component of 600,000 is already committed and leased off. The hotel, obviously, it will be ready by the end of this year or early next year, but then it takes about four to five months of stabilization. So we are planning to see that it starts trading in the month of July next year. But the office itself, per se, we'll do the handover by the end of the year.
Anything on Jijamata Mumbai?
Yeah. Jijamata is also it's all the planning is getting done aggressively. Now, we've named the project the Prestige Place. We now created a new brand identity called the Prestige Place. It's a mixed-use development. It has hotels. It has office. It has branded residences, shopping center, and residences for sale. We've appointed SOM as the architects, and they're on the job. We've already paid some premiums for getting secure in the SRA and other things. And it's work in progress. It will certainly hit the market soon. But the question is, how soon is to be evaluated. We don't want to hurry this up. We want to do it well. We want the planning to come out really, really well. And the hotel brand we are planning to do is Waldorf Astoria with all Waldorf Astoria branded residences.
Okay, sir. Sir, just last question on the Prestige Turf Tower. We have completed this tower, and recently you have also announced it. So how's the demand going on, and what rate we are missing?
No, no, that tower is not for sale. That's actually that Mahalakshmi. That's called the Prestige Turf Tower. It's only to rehabilitate the Turf Estate tenants who are there in the property, and they will move. Evergreen also will move there. I think between the two of them, they're going into this building. And the company may not have anything left over as such, unless we bought a few units here and there. But then the whole thing is to rehabilitate them so we can complete our the most iconic development for the Mumbai city, which is the Prestige.
Okay, sir. Thank you, sir.
Thank you. The next question is from the line of Parvez Qazi from Nuvama Group. Please go ahead.
Hi. Good afternoon, and thanks for taking my question, so I wanted to get your views on the approval side. In FY 25, approvals were an issue for the industry, but now with our launches picking up, we see that approval situation has now stabilized, and I've wanted to get a status on some of our major projects which are planned to launch in FY 26, like Raintree Park, Falcon City, Noida, Pallavaram, etc. Thank you.
Thanks. Thanks, Prateesh. Yes, I think we've got a grip on approval, and they have started falling in place. What we have said earlier also when we give the launches plan and the GDV slide, most of these projects are in the final or penultimate stage of their approval. Since we operate in various geographies, the nuances are slightly different, and each project will have its own nuances. Having said that, we're very confident that we'll pull this off. Evergreen at Prestige Raintree Park and Falcon City Luxe, they should also happen in the next two or three quarters.
Sure. Pallavaram, Chennai, will happen this quarter. Chennai will happen this quarter.
Sure. Thanks and all the best.
Thank you.
Thank you. The next question is from the line of Kunal Lakhan from CLSA. Please go ahead.
Yeah, hi, team. Firstly, on the launch, on the sales guidance, right, if we are guiding for INR 12,000-13,000 crores of sales in Q1 itself and, you know, considering incremental 40,000 crores of launches, excluding Pallava Gardens,
Yeah.
Just trying to understand because if you look at last year, right, I mean, whatever you've launched, you've sold like 50-55% of the launched inventory. So how should we look at, if you're able to get these INR 40,000 crore worth of GDV launched, how should we look at this guidance of INR 27,000 crores since, you know, you already be clocking INR 12,000-13,000 crores in Q1 itself?
No, no, this time we want to be conservative.
Mm-hmm.
We've got also INR 20,000 crores of inventory.
Okay.
So the thing is, I'd rather under-promise than over-deliver.
Sure, sure. Okay. Also in terms of, sorry, I don't know whether I missed this number, but in terms of our GDV, our new acquisition target for this year in terms of land spend as well as GDV that we plan to acquire for 2027, any targets we have there?
Our land spend on business development should be in the range of INR 4,000 crore-INR 4,500 crore, which should translate into a GDV of close to INR 30,000 crore-INR 40,000 crore.
Understood, understood, and also lastly, like, on Southern Star, we had reported numbers in the March quarter. I mean, we had launched that in the last week of March. Any incremental, you know, data you can share in terms of, like, you know, how the sales have panned out in that project in April and May?
Yeah, it's work in progress. It's done very well. And I think when we come to June numbers, we'll be pretty happy because again, it's abnormally, like you yourself said, we sell 60%-70% of the inventory in the launch itself. So that's going to happen.
Sure. Great. Thanks. Thanks so much and all the very best.
Thank you. The next question is from the line of Pritesh Sheth from Axis Capital. Please go ahead.
Yeah. Thanks for the opportunity. First is on collections, which was flat this year, and I can see while, you know, presales scaled up for us in Q4, it didn't result in too much pickup in terms of collections, so how do you see this collections growing next year?
Yeah. It is, despite if you see, last year we did INR 21,000 crores of sales and did a collection of INR 13,000 crores. And this year was flat despite sales falling to INR 17,000 crores. In Q4, again, the collection demand, though the sales numbers were higher, the collection demand flat because you see most of the projects got launched in the fag end of March. So two of the projects, our Southern Star as well as the Spring Heights got launched just two days and seven days before March 31st. So those collection numbers didn't flow in the financials in FY 25, but then all those numbers should flow in FY 26. So it will be a heavy pickup in collections during FY 26.
Sure. So just to clarify, we didn't collect anything, apart from the usual booking in Southern Star and Spring Heights, right?
No, no, we did collect more than the nominal amount that you're talking about. But, you know.
Okay.
What happened at the fag end of the quarter will all reflect in the Q1 of this year with respect to those projects, and those collections remain very healthy as per our normal benchmarks.
Sure.
And.
And.
Yeah, go ahead.
So it works since a lot of completions will come in in this financial year. You should.
Yeah.
See the amount of collections coming in this financial year.
Perfect. That's helpful. And just last on Noida, you know, any breakthrough expected this year for launch of Bougainvillea Gardens?
That's a government issue, sir. I don't know when because we are also now very tired, jaded. So we are looking for other lands. We got completely sort of set back because we were depending on that for a long time. And thankfully, we would do this in Indirapuram. So we are looking for new lands. And whenever the Noida happens, we'll take it as it comes because right now it's an issue not only for us, it's a global issue for everybody.
Sure, so in NCR now we'll contribute as equal to what we are doing in Bangalore, right?
Yes.
So a very large market for us now. And we don't have a volume, a mass market product there right now. So any big, you know, acquisitions expected either in Ghaziabad or any, you know, other tier two markets within NCR or, you know, Gurgaon, Noida can drive that much sales going ahead for us?
Yeah, it's all work in progress. I mean, I think by the end of this quarter, next quarter, we'll discuss it. Right now, it's all work in progress. The moment we tie it up, automatically we'll come to know.
Sure. Perfect. That's it from my side and all the best. Thank you.
Thank you. The next question is from the line of Akash Gupta from Nomura. Please go ahead.
Hi, am I audible?
Yes, absolutely.
Hi, sir. Congratulations on a decent quarter. Sir, my question with respect to your FY 26 presales growth guidance or presales number at INR 250 billion-INR 270 billion. Just wanted to understand, is there any downside risk to this number, from a demand perspective or approvals not coming in perspective? Like, how confident are we on this number?
There's always a risk of confusion, especially in our business, but I think we're confident that things are looking positive side, and we're still confident that we'll be able to achieve this guidance and that we have a lot of GDV coming in, and I think any launches that we are now familiar with.
Mm-hmm. And sir, like, are you seeing any red flags with respect to the demand, in the sense, any changes in footfalls or conversions, anything like that?
Absolutely not. Absolutely not. If the product is good, I think it will keep doing. For me, if the product is wrong, then as long as the product is to the right target audience, I believe this will be business as usual.
Understood, sir. Great. Thank you so much, sir.
Thank you. The next question is from the line of Puneet Gulati from HSBC. Please go ahead.
Yeah, thanks for the opportunity again. If you can also give some color on how do you intend to lease both the Prestige and BKC projects, have you leased some part already, or do you intend to lease it closer to completion only?
No, no, the teams are working very hard on this. I'm happy to say leasing, pre-leasing is happening, but I, at the moment, I can't either tell you the quantum or the company because we've signed a lot of, confidentiality, with them. But it's very, very, very positive, and that's why we are quite bullish on both these properties.
Okay, and then should we see both of them?
Construction is also going on at full speed.
Okay.
Even with completion also, we can start looking at it in the year 2028 for BKC and year 2029 for, the Prestige.
2028, when you say it's calendar 2028 or fiscal 2028?
Yeah, it's fiscal 2028 for BKC for sure, and maybe.
Okay.
Calendar 2029 for the Prestige because of higher end.
Understood. That's all. That's all from my side. Thank you so much.
Thank you. The next question is from the line of Biplab Debbarma from Antique Stock Broking. Please go ahead.
Good afternoon, sir. My first question is on the status of Jijamata Nagar project. So is the SRA work done and entire project cleaned up? I mean, what is the status of the project? All SRA related work done? Sir, bulk of it has been done. We've already started constructing the transit camps, everything over there. I think there's a small 20% odd left to clear up over there, which is in process and will happen. So, 20% around?
Yeah, around that much.
Okay, okay. So 20% more to be cleaned up after that and the rest of the site?
10%. About 10%.
Okay. So that would be minus five, six months, sir, for that site to be cleaned up?
Earlier than five, six months.
Okay, okay, sir. Now, my second question is on the next project, your BKC and Mahalakshmi and Delhi Aerocity. How much more CapEx to be incurred, including approval, construction cost, and all the other costs in these three projects?
Just give me a moment and, look at these numbers. Yeah, the total CapEx spend on all these three projects will be in the range of INR 7,000-INR 8,000 crores.
Okay, okay. And my final question is, we recently did the site visit of the three projects in MMR that you have delivered. We have covered in Mahalakshmi, Jasdan, and the Prestige City, Mulund. The delivery time seems to be like three, three and a half years, if I'm not mistaken. For Mumbai, many of us have seen, you know, time taking for delivery five years, six years, whereas you have delivered three and a half years. Is it the norm? Would it be the norm, like, you would be delivering in three and a half, four years, or this is just an, these three projects are just an outlier?
Sir, it generally takes about four years, so 48 months to do any real estate project. But depending on the nature of the project and scale, sometimes it could go up by a year or two over there because what happens is if there's a height, if there's a lot of basement, high-rise, substructure work, you know, and if it's like maybe 100 acres in size or whatever, it could take some time based on the scale, and all of this is factored in. We generally take the amount of time it technically takes to do the work. Sometimes we even deliver faster. That is the USP of Prestige.
That's really commendable.
Thanks for the insight. So things will happen. Make these things happen.
That's really commendable, and all the best for FY 26, sir.
Thank you. Thank you, sir.
Thank you, sir.
Thank you. The next question is from the line of Kunal Lakhan from CLSA. Please go ahead.
Yeah, hi. Thanks again. Just on the recent acquisition of the project, or the 50% stake in that project with Valdel Xtent. So we paid INR 500 crores for 50% stake. If you can give us a broader economics of, like, you know, how much incremental cost will be incurred in terms of FSI premiums and construction costs, and how much will be at stake?
Yeah, I see this whole project will be 1.5 million sq ft of office. It's already been designed. And very soon we can lock it in for approval. Obviously, we have to get through the whole gamut of things. So our company's contribution to get 50% equity in that company is that SPV is INR 504 crores. Then the rest of it will be contribution of equity from both the partners or debt. So that decision will take as we go along.
And this money is not something that the company has to invest upfront today. We'll have to invest it over the life of the project. And so only when that INR 504 crores gets exhausted, do I have to you know contribute together or take an increment and get into debt as far as we are concerned. I think the rest of it will come in the form of debt, and if you're asking me what is the cost of the overall project, the numbers are not readily on hand with me, but I think Amit can share it with you later.
Sure, sure. And in terms of timelines, when do you expect this to be ready and completed?
Yeah, I think, again, it's like I said, it's four basements. So, it's excavation can start almost immediately. So, we, and it's not a high-rise building. It's only 11 floors. We should be able to finish this in three to three and a half years because we want to do it on a fast track.
Sure, sure. And just clarifying, the INR 500 crores that we paid stays in the company? It was not a cash-out by the earlier?
No, no, no, no. It's not a cash-out. Yes, having said that, there is a small component with the other partner is to do a small takeout. But then they have to bring it back in. And that's only to make that SPV debt free. There's some 50-60 crores debt there is. So which we are now paying it now, and then that will come back to top up to that INR 504 crores. There's no takeout from either party.
Understood. Thank you so much.
Thank you. The next question is from the line of Yash Gupta from Kotak Family Office. Please go ahead.
Sir, my question is on the commercial side. If you look at the exit rental of the commercial business, we have taken BKC and Mahalakshmi at around, I think, INR 375 per sq ft. But current rates are very much higher than what we are expecting. So, do we need to take any uptick in the FY 2028, 2029 exit rental?
Okay. It is as we go along. I think that itself is a great number. If the month we get a better rent, it's great. But as of today, I believe it's a fair number to, sort of, work with. And sometimes we should do some pre-leasing. That's how. And this is, we are talking on not on carpet. We are talking on super built area. That's 350-375 super built area, not on carpet. Carpet will be INR 500 crores.
Okay, sir. Sir, next question on this: Mumbai, Prestige Horizon Heights. This is the Mira Road project that we have taken last quarter.
Yeah.
This will be launched in FY 26 only?
Yes, yes, yes. Time has to bring it for it to come earlier. There again, unfortunately, the MOEF committee has been disbanded in Maharashtra. So the moment the Environment Committee comes in and we get the clearance, it's a matter of time to get approval and launch it. So we are also waiting very, you know, impatiently for that to happen.
Sure. Thank you. Sir, the last thing on the dividend policy, this year, this time we have paid INR 1.8 as a dividend. So is this dividend will be the continuing one, or it will be like a one-off special dividend?
No, no. The last year also we did that same INR 1.8. So this year also the board felt because in the previous year it was INR 1.5, and this year it's INR 1.8. And of course, if the company does have additional cash flow, it depends on the board. Maybe later on they will tweak it as needed and then do more. That depends on how generous the board is.
No, no, no. This question was mainly pertaining to because next year we will going to expect like a bigger completion in terms of residential, and they're looking for INR 13-14 thousand crores of booking revenue in residential. That was.
No, no. The thing is, if there is surplus cash flow, see, always it's a balance. If too much of dividend is paid out, we don't want it to happen that, again, we have to look for funding and cash flow. So the best is to be conservative, and if things have to happen, I mean, if there's a lot more cash flow available as a company, we will definitely declare more.
Thank you. The next question is from the line of Abhishek Lodhia from Motilal Oswal Financial Services. Please go ahead.
Good afternoon, sir. Just want to have one question. For retail capex, right, balance spend has increased by roughly INR 1,100 crores. So what is it attributed to?
See, this is, if you see the breakdown, mainly attributable to the upcoming projects where we were just based on the design specification. We looked at the cost. It is mainly attributable to upcoming projects.
Okay. Thank you. Thanks.
Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to the management for closing comments.
Thank you so much, everybody, for the insightful questions. You had a lovely conversation, and I do hope you've understood what the company is up to. Feel free to ask any questions offline. Zaid and Irfan and Amit are more than happy to answer. It's wonderful interacting with you as always. Zaid, you want to add ?
Thank you so much, everybody. We remain focused and willing to improve our results year on year, and we remain committed to delivery for all the value.
Thank you very much. On behalf of Axis Capital Limited, that concludes this conference. Thank you for joining us, and you may now disconnect.