Prestige Estates Projects , through its retail arm Forum Malls, has announced an ambitious expansion plan that will nearly double its current portfolio of shopping centers across India's major metropolitan areas by 2029.

Expansion Strategy

CEO Muhammad Ali revealed that the company plans to open 14 new shopping centers in Delhi, Mumbai, Bengaluru, Chennai, and Hyderabad over the next six years. This strategic move will significantly increase Forum Malls' presence from its current 11 malls to a total of 25 shopping destinations.

Focus on Tier-I Markets

Ali emphasized the company's focus on tier-I markets, stating, "We are concentrating on areas where consumers have both the means and the appetite to spend. Unlike tier-II cities, these metropolitan areas match our target demographic's propensity to spend."

Innovative Concept: Athleisure-Focused Mall

One of the highlights of Forum Malls' expansion plan is India's first athleisure-focused mall, set to open near Bengaluru's international airport by 2027. This unique 800,000 sq ft shopping center will feature:

• Global sportswear labels
• Fitness gear retailers
• Yoga studios
• Lifestyle brands

This innovative concept aims to capitalize on the growing athleisure trend and create a destination for health and fitness enthusiasts.

Festive Season Expectations

Forum Malls is optimistic about the upcoming festive season, which traditionally generates 30%-40% of its annual sales during the October-December period. The company anticipates:

• A 15% increase in footfall for October
• A corresponding 15% rise in revenue

To support these expectations, Forum Malls allocates 30%-40% of its annual marketing budget to the festive season, with planning beginning as early as January.

Industry Impact

This expansion plan by Forum Malls signals strong confidence in the Indian retail market's growth potential, particularly in tier-I cities. The move is likely to create new opportunities for brands and potentially reshape the competitive landscape in the premium shopping center segment.

As the retail arm of Prestige Estates Projects, Forum Malls' expansion aligns with the parent company's growth strategy. The ambitious plan to double its portfolio by 2029 positions Forum Malls as a significant player in India's evolving retail landscape, with a clear focus on premium, experience-driven shopping destinations in key metropolitan areas.

Prestige Estates Projects Limited , a prominent real estate developer, has disclosed that its subsidiary, Prestige Office Ventures, has received a show-cause notice from the Directorate General of Goods & Services Tax Intelligence, Hyderabad. The notice alleges non-payment or short-payment of goods & services tax (GST) and non-reversal of input tax credit during the period from February 2020 to March 2024.

Details of the Show-Cause Notice

The tax authorities have proposed a demand of ₹160.82 crore, along with an equivalent penalty and applicable interest. According to the notice, Prestige Office Ventures is required to appear before the Additional/Joint Commissioner, Hyderabad CGST Commissionerate, within 30 days of receiving the show-cause notice.

Company's Response

Prestige Estates Projects has stated that they consider the demand not maintainable. The company is currently evaluating the matter and plans to take appropriate action. In its disclosure to the stock exchanges, Prestige Estates emphasized that it does not anticipate any material impact on its financials, operations, or other activities as a result of this notice.

Market Reaction

Despite the news of the GST show-cause notice, Prestige Estates Projects' shares closed positively in the latest trading session. The stock ended at ₹1,588.70, marking a 1.48% increase for the day.

Regulatory Compliance

In compliance with the Securities and Exchange Board of India (SEBI) regulations, Prestige Estates Projects has made the necessary disclosures to the National Stock Exchange of India Limited and BSE Limited. The company's prompt disclosure aligns with the transparency requirements set forth by SEBI under Regulation 30 of the Listing Obligations and Disclosure Requirements.

As the situation develops, stakeholders will be watching closely to see how Prestige Estates Projects addresses the allegations and navigates the regulatory process. The company's confident stance regarding the non-maintainability of the demand suggests that it may contest the notice, potentially leading to further developments in this matter.