Prestige Estates Projects Limited (NSE: PRESTIGE) Q3 2025 Earnings Call dated Jan. 31, 2025
Corporate Participants:
Zayd Noaman — Executive Director
Irfan Razack — Chairman & Managing Director
Amit Mor — Chief Financial Officer
Analysts:
Pritesh Sheth — Analyst
Parikshit Kandpal — Analyst
Puneet Gulati — Analyst
Eesha Shah — Analyst
Yash Gupta — Analyst
Abhinav Sinha — Analyst
Biplab Debbarma — Analyst
Vaibhav Saboo — Analyst
Vivek Ramakrishnan — Analyst
Jeet Shah — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to the Prestige Estates Q3 FY ’25 Investors Conference Call Hosted by Axis Capital. 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 then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr Pritesh Sheth from Axis Capital. Thank you, and over to you, sir.
Pritesh Sheth — Analyst
Thank you. Thank you,. Good afternoon, everyone, and welcome to the call. As usual, we have with us the management of Prestige Estates, represented by Mr, Chairman and Managing Director; Mr Noman, Executive Director; and Mr Amit Moore, 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.
Zayd Noaman — Executive Director
Very good afternoon. Thank you, Pritesh. This is there Noman. Thank you for joining today’s earnings call and I wish you all a very Happy New Year. This is the first-call of New Year. I’ll begin by providing an overview of our key performance highlights for the quarter and the nine months of the fiscal year.
For our operational performance, I’ll begin with the Q3 FY ’25 sales, we’ve achieved a sales of INR3,013 crores with 2.23 million square feet of real-estate sold across 88 units. Our sales performance remained well-diversified with Bangalore, Mumbai and Hyderabad being key contributors. Despite no new launches, we have achieved a fairly strong sustenance from a project like Prestig Raintree Park, Prestige City Hyderabad, Presti City Mumbai and Prestige White Metals.
Our average realization for the quarter remained strong at INR13,684 per square-foot. Collections continued to be healthy totaling to INR3,267 crores during the quarter. For the nine-month period, we recorded a total sales of INR10,065 crores with 8 million square feet sold across 3,618 units.
Our collection for the nine months stood at INR8,910 crores, reflecting steady cash-flow generation across our projects. Going on to our financial performance, revenue for Q3 FY ’25 stood at INR1,697 crores. EBITDA for the quarter was at INR633 crores, translating to a margin of 37%. PAT for the quarter stood at INR32 crores, impacted by mark-to-market loss on our REIT holdings given that we are holding in REIT.
For the nine-month period, total revenue reached INR6,146 crores. EBITDA for the nine months stood at INR2,342 crores with a strong margin of 38% and PAT for the period stood at INR573 crores with a net profit margin of 9.34%. And something interesting that I’ll share with you is our segment-wise performance. I’ll begin with the office.
Our office segment recorded leasing of 3 million square feet of which 2.85 million square feet of fresh leasing. I’d like to put on record that the calendar year was 4.5 million square feet, which was one of the highest in the market across the country. Occupancy levels across our portfolio remained stable at around 90%.
Our exit income as of December 2024 stood at INR522 crores for the company and we will achieve our target of around INR700 plus crores of — for March 2025, which we have guided earlier. Our retail, our portfolio continued to perform well with growth trading value of surpassing INR1,730 crores during Nine-Month FY ’25.
This is the consumption figure across our malls. Footfalls at our malls remained strong, reaching 14 million visitors, while occupancy levels were at 99.2% and our retail segment’s exit rental stood at INR217 crores as of December 2024. For our hospitality portfolio, we maintained steady performance with an average room rate of INR14,000 plus INR14,000 rupees and revenue per available room, which is a RevPAR at INR8,500.
Average occupancy stood at over 60% for the nine-month period and the segment generated total revenue of INR661 crores with an NOI of INR238 crores for the nine-month period. Looking ahead, we remain focused on executing our strategic priorities and strengthening our portfolio.
We are excited to conduct our maiden residential project handovers in Mumbai in the coming months, which is Prestige CSR at Presti City Malone and Prestige Classic. On our annuity assets in Mumbai, the rehab building has been completed at the prestige and the OC has been received. At BKC, the rehab construction is underway and should be completed in the next few quarters.
We are preparing, as you would all be eagerly awaiting to hear to launch a robust project across all our key geographies, Bangalore, Hyderabad, Mumbai, Chennai and NCR in the next few weeks. These higher velocity projects located across prime geographies should drive significant sales volume and help us regain sales momentum.
The project that we will be launching are press release Southern star in Bangalore, which should be around INR3,500 crores of GTV GDV. So Xi City, Indrapuram in NCR, INR11,500 crores of GDV, which is — we’ve revised our guidance slightly upward as the realizations have improved in the same region and Prestige Palama Gardens in Chennai at INR3,000 crores.
Prestige hike INR3,200 crores in Hyderabad and Prestige Northless in Mumbai at 8,600 and this is a total of INR30,000 crores worth of inventory, which we will definitely bring in this quarter. We are seeing this with utmost confidence as most of these projects have been logged-in for and should be launched in the next few weeks. Now I’ll hand it over to Mr for any comments.
Irfan Razack — Chairman & Managing Director
Hi, everyone. I think has very, very nicely presented a full overview and I think he’s covered all the points and Mr Amit wants to add-on, we’ll ask him, otherwise, we are open for Q&A.
Amit Mor — Chief Financial Officer
We’ll open for Q&A.
Irfan Razack — Chairman & Managing Director
Amit says guys has been very clear. Are you on the call? Hello,
Operator
Yes, sir, yes, sir, can you hear me?
Irfan Razack — Chairman & Managing Director
Yeah, I can hear you.
Questions and Answers:
Operator
Yes, sir. 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 touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use answers while asking a question.
Ladies and gentlemen, we will wait for a moment while the question queue assembles the first question comes from the line of Parikshit Kandpal with HDFC Securities. Please go-ahead.
Parikshit Kandpal
Hi, sir. Mr, so my first question is sir, how many of — you have — I think that spoke about INR30,000 crores of projects which will get launched. So how much — many of these projects or which are the projects which have already been logged-in for?
Irfan Razack
Please giving you the list, as of now, see Southern star has got approved and I think — and then there’s see Suncrest which is missed out here, even that is also locked-in for. Garden, the plans are approved. We have to get it in-hand for us to lock it in there are and prestige, we just got the change of name just an back.
So that is also there. The plans are approved and the change of name from the previous promoter has been done. We just have to fill-in the new plans that have been done and that have been approved. And the next one is the spring hike, the approval should come in our hands today, maximum tomorrow, after which we’ll log-in for Era.
So all these are like happening including Prestige City in NCR. We have logged-in for Era and it’s work-in progress. There are some of clarifications which we are thinking, which we will give and we will satisfy that.
Parikshit Kandpal
But especially Indhra Puram is a large project, sir. So do you think in first-half of February, you will be in a position to launch it because we have been hearing for now many weeks that queries have been coming back-and-forth, but we’ve still not been able to get approval. So what is the issue there and this?
Irfan Razack
We have authority that probably is overstepping, but we can’t say that in so many words now or they have to — they want us to — they are — we’ve got a co-promoter in our previous landowner and our CND very clearly says apart from the consideration, we also give a percentage, but they want us to do a JDA.
So we are trying to do that and satisfy them. There is no other choice because according to me, it’s not, but then I can’t fight. I have to just comply.
Parikshit Kandpal
Okay. So now just last question on the guidance, sir. So I think you have done INR10,000 crores in nine months and now to meet that guidance of 23,000 or 24,000 — I mean near about 23,000 24,000, you need to long jump.
Irfan Razack
If the The inventory is available, it is possible because whenever we do our launch, we sell about 30% to 35% or 40% of the inventory. So got INR30,000 crores worth of inventory that can come into the market and 40% of that is INR12,000 and plus has got existing inventory. So it’s not impossible. Now it all depends on how soon the rare numbers come. Like you rightly said, we are in end of Jan, so it’s just eight weeks remaining out of which February is a short month. Our team is all geared up and the best part is the customers are waiting. But as so there is no interest or there is no buyoff. We keep getting a lot of inquiries. But the thing is we have to follow the regulatory, we have to follow the law. And if it — by chance, it doesn’t happen in this quarter, it will just flow to the following quarter. But according to me, in all probability, we will pull it off. I don’t see any reason or any doubts into this.
Parikshit Kandpal
And see, I mean, this project has been widely advertised on social media, especially the Andhara Puram. So what we have been hearing, there is a good undercurrent on-demand side. So looking at EUI and the numbers which you highlighted across all these projects, do you think EOIs will catch-up to that 30% 40% kind of demand, which you earlier spoke about in the
Irfan Razack
Can you see Southern star like once we launch it, it’s like we will be able to sell-off almost half of it or more than that. And even we’ve got what is called the — the other project in Bangalore, which is Suncrest, even that also will be — it’s INR800 crores, but between Southern star and is INR4,300 crores.
We should be able to get about INR2,500 crores from there. And similarly, not unless is 865, but my team in Mumbai has promised me that this quarter, since we are all set, there is a lot of interest on that. We should get another INR2,000 crores there. And what remains is and Spring heights is Chenna, Hyderabad. Now in Rapurup, the plans are approved.
I just — if I get my rare number today, I’m ready to go because even my CEC is almost ready, but then it’s what to do. We thought we will actually launch it in the previous quarter. If not happened, I only hope and pray we don’t miss this quarter.
Parikshit Kandpal
Indra Buram could be INR5,000 crore INR6,000 crores if you are able to launch it, I mean almost INR12,000 crores or something
Irfan Razack
Easily, but the thing is I should get it is always that we see and I don’t want it to exert too much. In fact, I personally went to myself to convince the Chairman. The Chairman is receptive, but it’s — let us see what happens.
Parikshit Kandpal
Okay, sir. Sure, sir. Thank you and wish you all the best. Those were my questions.
Irfan Razack
Thank you. Thank you.
Operator
Thank you. Before we take the next question, a reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Puneet from HSBC. Please go-ahead.
Puneet Gulati
Yeah, thank you so much. MR. If you can also talk about while you’ll have INR20,000 crore worth of inventory potentially spilling over to FY ’26, if you can briefly outline what is the plan for ’26 in terms of launches?
Zayd Noaman
Hi, Puneet, this is. And while we have about INR22,000 crores are highlighted from that INR60 odd, I think we’ll give you a better clarity by the end of this quarter because whatever regions launched this past fiscal year will flow into the next financial year, next quarter-and-quarter that way.
And also there is some new BD that we have done, business development, which will happen. For example, we will be launching our projects in Goa as well, which is slated for the next quarter as well as many launches in Bangalore.
Puneet Gulati
Okay. And secondly, any thoughts on why do we need to hold-on to Nexus shares? I mean, I presume there will be other places where you can deploy for higher IRRs?
Irfan Razack
See, it’s a sentimental thing. It’s some 4.5% of it. There is no debt also on the Nexus share. We have kept it. Anytime I want to liquidate, I can. Now it’s the wrong moment even if I want to sell. If I wanted to, probably I would have sold it when it was on a peak, that’s almost INR1,000 crores.
We’ll see. I mean, it’s more sentiment than anything else. I think in the larger theme of things that we do, I believe that 4.5% of the REIT is not something that I should be really worried about. And in case there is need of cash and then we want to reduce debt, we can straight away and liquidate that and have — it’s like a liquid asset.
Zayd Noaman
We have lot of funds available in the company, Puneet. So right now, we are not looking at liquidating the REIT units. Whenever a good opportunity is there which we can bank on at that point of time, we will be evaluating — liquidating the REIT units.
Puneet Gulati
No, very clear on this. Thirdly, on the land acquisition part, this time there were lot of stake buybacks, etc. How is the plan going ahead? Are there more still stake buybacks that you’re looking at? Or are you going to go for land acquisition route or could you still prefer a JV kind of model, which you’ve always done historically?
Zayd Noaman
So here we remain agnostic. It depends on the opportunity that we are presented with. And based on that, we will either do a JD or JV for our residential or an outright buy for our annuity project.
Puneet Gulati
Any more stake buybacks still remaining?
Zayd Noaman
I don’t think anything planned for this broker or whatever we done is whatever we have done, apart from that, we don’t have any other plans.
Puneet Gulati
Okay. Sir, lastly, if you can also give some sense of collections, run-rate and construction run-rate. So collection run-rates without any launches are very nicely settled at INR3,000 crore-plus crore. Should we assume that that’s the bare minimum that you will continue to run with? And on the construction cost as well, the spend has pretty much doubled compared to previous quarter. Will that be a new run-rate or is there expectation of further growth from these levels?
Zayd Noaman
So I’ll come on the construction spend. I think so in the earlier quarters, an average run-rate of INR300 to 1,400 was what we were spending per quarter on the residential construction. In the current quarter, we have spent close to INR2,100. That is mainly because of two reasons. One, we have spent significant amount on approvals for upcoming launches.
That amount is close to INR350 400. We have spent 150 plus on the around INR150 crores INR180 crores on the North project itself. Apart from that, we have a few projects which are nearing completions and doing your PTC then we have some projects in Mumbai, that is basically the last and CSTA and one project in Hyderabad region, which is a better region.
At the final stages, the construction spend generally little higher. But on a, I would say, longer period, we can say that around INR1,500 to 1,600 will be the average construction spend per quarter. In terms of collection, the collections have been on a steady-state for last three, four quarters.
The last 3/4 because the sales have not come down, both of the big launches we were planning has not hit the market. Once the launches are achieved, I think the collection should grow from currently 12,000 levels to INR16,000 to 18,000 levels per year.
Puneet Gulati
How much from?
Zayd Noaman
Right now, my residential collection is around INR12,000 crores to INR13,000 crores, around INR13,000 crores. It should grow to INR16,000 this year once all the launches what we have spoken about a few minutes back, those are able to hit the market. And then from the normal sales growth is there, we’ll be able to grow collection point earlier.
Puneet Gulati
That’s very helpful. Thank you so much and all the best.
Operator
Thank you. A reminder to all participants, you may press star and one to ask a question. The next question is from the line of Isha from Axis Securities. Please go-ahead.
Eesha Shah
Hi, thank you for letting me ask the question. Most of my questions have been answered. I just wanted to understand what kind of growth guidance for launches for FY ’26 as well. Say for example, all the launches that we mentioned in FY ’25, most of them may or may not happen this in the quarter-four. Do we have any guidance for FY ’26 for launches and for pre-sales as well.
Zayd Noaman
Okay. This is there. We guide on this in the end of this quarter.
Eesha Shah
Okay. Hello, am I audible?
Operator
Yes, ma’am. Please go-ahead.
Eesha Shah
Yeah. No, I just wanted to understand. So FY ’26 launches you’ll be guiding post-quarter four is my question.
Irfan Razack
No, I said see, first let’s finish this quarter, then we’ll evaluate after the settles. We have a big strong pipeline and we’ve got another INR30,000 crores worth of projects that are under approval and all that. So we’ll evaluate once this quarter gets done and we’ll see where We’ve reached on our target. And then based on that, we — and based on what inventory we have, we will inform you in probably the next quarter. Next too early for us to talk about the next quarter just now. There is — teams are working with a big pipeline and I think there’s no dearth of inventory or pipeline that can come. It’s all about how quickly we can get the regulatory stuff and bring the product to the market. Like I said, the market is there, the customer is there. Only thing is we need help from the powers that
Eesha Shah
We nothing on pre-sales guidance as well going-forward?
Irfan Razack
I didn’t clear you. I’m not clear.
Eesha Shah
Anything — nothing on pre-sales guidance as well for FY ’26?
Irfan Razack
No, FY ’26, as I said, I can’t give you guidance just now. Let’s finish FY ’25 and then we’ll go to ’26.
Eesha Shah
Okay. Okay. That’s it.
Operator
Thank you. The next question is from the line of Yash Gupta from Ashish Coteja Family House. Please go-ahead.
Yash Gupta
Yeah, good afternoon, everyone. Sir, my first question is on what revenue number are we looking for in FY ’26 with the project completion method and what could be the EBITDA of those projects?
Irfan Razack
Amit will answer this. We would definitely like-to-like in I believe in Maharashtra auditors told us they are doing a percentage completion method. Now if we are now still doing a company, company 100% completed method. So it has a big bearing on the financial results and obviously all expenses are getting upfront, whereas my revenue comes much, much later.
So we are having a chat with the auditors if they’re doing it in a different territory in the country on a percentage completion method, why two different rules, two different rules for two different — for the same industry. So it’s a discussion that’s going on. Supposing we all revert to either percentage completed or it should be 100% completed method.
I believe otherwise you can’t even make out what is happening, especially for analyst like selection, it will be very difficult. I mean,
Amit Mor
In terms of the expected revenue for FY ’26, we will have some large launches, I mean projects getting completed in the next financial year. This includes the prestige, the. So the facility in terms of revenue, it will be in the close of INR10,000 crores 12,000 crores what we can expect next financial year?
Yash Gupta
And sir, what could be the EBITDA margin for those projects?
Amit Mor
And 30% if you can look at the EBITDA margin on these projects?
Yash Gupta
Okay, sir. Sir, my second question is on — in the slide number 20, we are showing that free-cash flow from the residential business is around INR50,000 odd crore in next four to five-year approximate. So approximately we are getting INR10,000 crore every year. So how we are rewarding our shareholder going-forward
Zayd Noaman
Is — see, our strategy has always been whatever the key cash flows that we generate from the residential segment, we would like to redeploy a portion of it for business development to grow the residential segment and deploy the balance for my annuity business so that the reliance on debt is reduced
Yash Gupta
Okay, sir. But is there any policy — dividend policy we are looking for any specific thing?
Zayd Noaman
No, currently what we will look at is completing our annuity portfolio, okay, because there’s a significant amount which we need to spend before we start leading. And at that point of time, we can have a reevaluation of how the dividend policy or the shareholder is at the other side of that.
Yash Gupta
Okay. Thank you, sir.
Operator
Thank you. The next question comes from the line of Pritesh Sheth with Axis Capital. Please go-ahead.
Pritesh Sheth
Yeah, hi, thanks. Just a couple of questions. First on in general, the approval process, are you seeing any improvement now versus where we were like two, three months ago? I mean, let’s keep a Ghaziabad of aside for now, but in general for your core markets like Hyderabad, Bangalore, Mumbai, you know, how would you rate the current approval process in terms of timelines?
Irfan Razack
The rules are the same, fixed, there is no leeway on how they — but it’s only a question of a distraction in the last 3/4 what happened is each state went into election and we had general elections. That’s why this year we had this huge lag and now that’s behind us, its only thing is we just discovered that every state, the RERA interpretation is very different and the method they deal or giving a rare.
Actually the thing is we have to just log-in online and given all the documents and get a ragistration number. But then everybody has differently. So it takes its own time and we have to probably comply with what they want at.
Pritesh Sheth
Got it. And just second question on the retail revenue, which was down this quarter by 4% Y-o-Y, we have seen other players doing well in terms of retail segment growth. So any specific thing you want to highlight for what happened for us this quarter?
Irfan Razack
Retail revenue is not down. In fact, our malls have traded the best-in this quarter and we’ve had the best revenue. Right now, we are operating two large malls and then two small ones and we’ve got almost 100% occupancy in the retail. And I think December was the best month where we got the maximum turnover.
So I don’t see any concern there. I don’t understand which retail revenue you’re talking about. Because as far as I’m concerned, it’s 99.2% occupancy 0.2% occupancy and there is no dip in any revenues. Unless we are talking about the next week which we have written-off, that could have brought down the profits because that mark-to-market that that’s something to do with the stock market and nothing to do with the business.
Pritesh Sheth
No, I’m talking about the disclosure that you given presentation, but I’ll connect offline for this. That’s it from my side. Thank you.
Irfan Razack
Ask you on what you asking,
Pritesh Sheth
We can move on to the next question. Yes, I’m read queue.
Operator
The next question comes from the line of Avinav Sinha from Jefferies India. Please go-ahead. MR. Avinav Sinha, you can go-ahead with your question, please.
Abhinav Sinha
Sir, on the upcoming launches, just wanted to check what are the project ticket sizes that we are looking at in terms of unit per crore, particularly for in Southern
Irfan Razack
No, no, I think if you asking on the ticket side, ticket size will be roughly about INR25 crores upwards
Abhinav Sinha
35 is that right?
Irfan Razack
Of course that’s a minimum, because it is a luxury project and it’s the most premium that we can get-in the company. It can go much, much higher even 70 crore 80 crores.
Abhinav Sinha
Okay. And you are expecting around INR2,000 crore of sales at launch, right? So roughly 50 units to be sold approximately, is that right? Yeah.
Irfan Razack
Now the only proof of the pudding is in the heating. Once we launch it, there is a good traction, there is a good inquiry and it’s all like the ocean tower, we may also surprised that we sold 104 units
Abhinav Sinha
And similarly for Southern Star, what is that product?
Irfan Razack
Other than that is a medium sum product and I believe that probably around INR1.5 crores to about INR3 crores. So that will be the ticket size and that’s the same thing. Southern star, spring height in Hyderabad as well as Garden in Chennai, these are the mid-income products and of course, in NCR are all mid-income products.
Abhinav Sinha
Okay. Sir, you’ve also added a new project in Mumbai this time. So can you describe where it is located and what are the expectations from that?
Irfan Razack
This is right. We bought the land And it has about roughly a little less than 1 million square feet. Also is one. About 10 million square feet of salable area. We finalized and closed out on the plan actually and our sort of design — design path is over, now it’s going for approval and things are trying hard to see how soon we can bring it to the market. There the selling price, again, it’s a quick seller because the overall ticket size will be much less and your selling price itself and carpet will be around that INR18,000.
Abhinav Sinha
Okay. And sir, finally, on the gearing ratio, what should we expect in the next few quarters is now the level that we will maintain or it will possibly go up a little more?
Irfan Razack
No, I think it shouldn’t go more at all. Actually, as I see maybe one or two quarters may spike up, but the amount of inventory that is coming in, the sales that we are looking at, we should have enough of cash-flow, whatever cash-flow was tied-up and whatever debt was tied-up for all these projects will come back and we’ll be quite flush with additional cash flows. That will help us for our capex project also.
Abhinav Sinha
So ideally 0.5 to 0.75 for the next maybe one or two years.
Zayd Noaman
If you — our endeavor to keep it below 0.5.
Abhinav Sinha
Okay. Thank you.
Irfan Razack
That’s our wish. And I think we will do it, we’ll pull it off. I don’t think there should be any problem on that because there is a lot of positive cash flows that are going to come in.
Abhinav Sinha
Sure, sir. Thanks and all the best to the team.
Operator
Thank you. The next question comes from the line of Diplav with Antique Stock Broking. Please go-ahead.
Biplab Debbarma
Good afternoon, everyone. So my first question is, is the by the regulators, if I may use the ethanism restricted to the project or you know, does it extend across projects? Are you seeing this kind of enthusiasm by regulator across.
Irfan Razack
I can’t hear you properly.
Biplab Debbarma
Sir, I’m just trying to understand is this approval challenges restricted to Indirapuram project or it is across projects.
Irfan Razack
So each state has their own way of functioning and we have to learn that you see this is the first time we’ve gone to a UP and now we are learning and probably the next time we would have learned by then other states, we are already there for many years so we’ve understood how they operate and we have to play to the galleries.
Biplab Debbarma
So that means in other states or other projects, you are not seeing this kind of. Okay, okay, okay. That’s a good news. And second is regarding North India Worldi, you know, Worldi already has significant supply in the same category, INR20 crore, INR30 crore category and more to come from other developers, major developers, reported developers.
So how confident are you in the response because I believe lot to sell, INR7,000 crore of GDV. So are you — are you seeing a kind of oversupply in the market or you believe that there is enough demand to absorb all the supply that would be coming in the next one year or so.
Irfan Razack
Yes, you see what happens is real-estate is all about location. This location has found people fancy and my staff at the ground level are very, very confident. They already have primed up the customers and they are confident that once we launch, we’ll get significant numbers from this project.
Now like I said, proof of the pudding is in the eating. And if I — once I launch it and I don’t get the numbers, then it will be proof that there is no demand. As of today, there is demand. As of today, there is attraction and we believe and even I have to yet to see it like people — my staff was not very confident on the ocean when we launched it and they couldn’t believe that it went so fast.
Similarly, here also, we are not in such a great hurry to sell it because this product is very good. This location is the best of the best-in what is available in those micro markets. Yes, more-and-more supply comes in, there will be a step and we believe that the only the best can survive. So — and according to me, our project is the best.
Biplab Debbarma
Fair enough. And my final question is, you know, could you please update us on the progress of your key commercial projects, BKC, and Delhi, Aero City. When do you expect this to be completed? Because I see some visually whenever I go in that area, I see significant progress in BKC and the.
But if you could give more insight on what kind of progress and by when do you expect this to be operationalized?
Irfan Razack
See the good news is that expre my rehab tower, which — I mean it’s not rehab, it is a beautiful office tower, which is the preced turf tower is ready. We got the occupancy like said in opening remarks and we started handing over the units to the turf estate and the evergreen estate occupants to move-in there.
And once they move-in, they will demolish these two this thing. But in the meanwhile, the tall towers are already under-construction and our targeted year of completion of 2028. Similarly, BKC is also moving very, very fast. We have fortunately we are out-of-the ground. Even there we have a rehab tower, which by June, we’ll be completing about 700 apartments, which we’re handing over to the EWS, to the authorities.
And at the same time, our both BKC 101 X&Y are coming well. And the good news there is we have done some quite a lot of substantial pre-lease. I can’t reveal the numbers or nor can I reveal the name because these are both the strict under confidence. But I can tell you quite a substantial amount of area has been pre-committed and big-name.
So that’s giving us that much more confidence. And also we are building an addition hotel there, which you’ve seen in our investor presentation.
Biplab Debbarma
So what about the projection?
Irfan Razack
Yes, sir now, for instance, we are doing this massive hotel in Aero City in Delhi that is the St. Increases and the — what’s that called marking the structure for the hotel portion is ready and now the razing and the windows and the other job is going on, including the finishes and the office portion also is coming up very fast.
And the good news is that entire office portion is pre-leased and we’ve got some good clients even there and because of confidentiality, I can’t tell you the name, but there the entire office is free leased, it’s 100% leased-out.
Biplab Debbarma
And when do you think BKC and LOCT project would be completed by when
Irfan Razack
BKC 2028 Aero City by 2025 end? Oh, of course, better when will — because it’s such a large asset, it will start trading in 2026 beginning, but the asset itself will be ready by ’25 and that means I’ve got 12 calendar months, out of which one month is gone. It’s 11 months, of course, in case we have more topic, this is like GRAP 4 in Delhi, we may have suffer some delays.
Biplab Debbarma
That’s great news, sir. Thank you and all the best, sir.
Irfan Razack
Thank you.
Operator
Thank you. The next question comes from the line of Sabu with Nippon AIF. Please go-ahead.
Vaibhav Saboo
Hi, thanks for giving me the opportunity and good afternoon. A couple of questions from my side. Sir, one thing, while you have explained that UP geography was new for you. But if I look at it even within like our total geographies or Bangalore, etc., there seems to be delay in approvals.
So just wanted to understand the reason for that. Is it because we have filed for the approval slate or because in the last conference call, you had stated that we would be launching — we would be launching 50,000 CRF projects just in H2. So just want to understand why there is approval delay for — especially for our two geographies.
Irfan Razack
No, there is no delay in the other geographies. It’s only as I told you, there was this huge distraction for general elections and the state elections and all that is behind us you know either it’s Hyderabad went for election or Bangalore went for election or the country went for election but all distraction is over and I think all the officials, what happens in elections all the officials are to different states, different cities for the election duty. So when they are not available, nothing works in the system. Now I think That’s behind us and I don’t see any further delays and I believe that if we really focus and we can get all our projects which we were planning on into the approve and get the rare done and then not these projects.
Vaibhav Saboo
So sir, just in attribution to this, out-of-the 57,000 CR, which we have stated during the PPT that the GDO launches, how — like how much of this has been already filed in the RERA approval?
Irfan Razack
I think in his opening remarks told you about INR30,000 crores worth of projects are almost applied for Era, the approval has come, we just have to file for Era. I think all these will come. Like you see NCR is 11,500 as I told you. Bangalore will be about 4,300, Tennai will be 3,000, Hyderabad will be 3,000 so it’s coming one after another. Mumbai is another 8,000.
Vaibhav Saboo
And sir, just one last thing on the Hyderabad market itself, we seem to have quite a inventory there, which has been there for quite some time. So how are we looking at that market particularly because there seems to be a lot of supply, but not enough traction if I look at the demand versus supply that seems to be quite severe for Hyderabad versus other versus our other markets.
Irfan Razack
So see, now if you’re talking about office market, I agree Hyderabad market office is saturated and there is oversupply. Fortunately, we built 2.2 million square feet-in Hyderabad in-office. We are left with 700,000 more square feet to lease and we are talking to two, three large clients and my team is hopeful that in the next two, 3/4, they’ll make it 100% filled up.
With that, we are probably fortunate because we did a good product and our location is good. It’s already almost consumed. On the residential market, the good news is we did this prestige city Hyderabad, which has 4,700 apartments. Out of 4,700 apartments where we are just getting out-of-the foundation, the company has sold more than 3,300 apartments in a period of just about less than a year.
I think that’s no mean achievement. And I think the rest of the 1,000 odd. In fact, I told my team to go slow and not to sell it off fast because we need to also get some appreciation on the price. Similarly, we completed a project in Hyderabad and Pet called Prestige, fully sold-out, completed.
We have completed just now in February 11, inaugurating a project called Prestige fully sold-out, completed. And now the other one that is ongoing is Prestige Claremont where we sold almost 70% of the inventory and their pricing has gone up. So I think we are pretty confident on the Hydera mass-market. It depends on your location, depends on your brand, I think and of course, the proper pricing itself.
Vaibhav Saboo
Yeah, understood. Thanks and all the best.
Irfan Razack
Thank you.
Operator
Thank you. The next question is from the line of DSP Mutual Funds. Please go-ahead.
Vivek Ramakrishnan
Hi, this is Vivek here. Just a continuation of the previous question actually. Actually are — and this is virtually the last slide of your presentation. If I see the inventory — the stock drop, it was 12 million square feet-in the last quarter, it’s come down to 10 million square feet. And at the price hikes that you’re seeing, do you see any difficulties in liquidating the inventory? And would this 2 million per square feet be the rough run-rate going-forward as well? That’s my only question. Thank you.
Irfan Razack
This is the slide you’re talking about page number?
Vivek Ramakrishnan
Page 47 4748 of the last
Irfan Razack
Exit rentals retail. And then you’ve got residential project free-cash flow. Is that right?
Vivek Ramakrishnan
That’s the one. The project free-cash flows, where you see the stock, it shows 12 million square feet, feet-in the previous quarter and shows 10 million square feet,
Irfan Razack
10.05.
Vivek Ramakrishnan
That’s right.
Irfan Razack
Value is 13,682. This is across all geographies, all projects put together.
Vivek Ramakrishnan
That’s right.
Irfan Razack
So your question?
Vivek Ramakrishnan
Yes, sir. Yeah, sir, the question is, you know, is this — essentially in the last quarter, you sold 2 million square feet. And is that the run-rate that you see because you said you were holding off-price hikes and so on? And at the current price hikes, would you be able to clear off this at the same run-rate.
Irfan Razack
You see now 2 million square feet on a sustenance basis, I am selling, I will sell because I don’t want to sort of give schemes like other people are doing and try to sell. There is no desperation to sell. So we are doing what we are doing in a proper manner so that the bottom-line of the company doesn’t get affected and actually get boosted in the other way around.
So if you look at it rightly pointed out for you to the volume of work that we are doing, out of INR91 million, if I’ve got 10 million stocks, that shows it’s just about 10% of the stock that we are holding, which is very, very minimal. And if that’s going to at 2 million in a quarter,
Zayd Noaman
2 million would be all a lower-price because we didn’t have any launches.
Irfan Razack
No, no, he’s talking about this inventory.
Zayd Noaman
This would be
Irfan Razack
Because inventory you add-up and go up further. In this inventory, I think on a sustenance basis, it should go. What is the inventory we have is basically we’ve got Prestige City Hyderabad, Prestige City Booland and a little bit in Bangalore.
Vivek Ramakrishnan
Sure, sir. Thank you very much and wish you all the best.
Irfan Razack
Thank you.
Operator
Thank you. The next question comes from the line of Yash Gupta from Ashit Koteja Family House. Please go-ahead.
Yash Gupta
Sir, just to confirm the launch number, we have INR56,000 crores of launch pipeline. Out of that INR32,000 crores we are expecting to launch this quarter. And in the morning in the TV interview, you have mentioned that another further INR50,000 crores of project are under design stage. So is that correct understanding?
Irfan Razack
Yeah, yeah, there is — the pipeline is there now. So this is what we have told INR56,000 is what is ready, which is under approval. There’s another 50,000 where we have got different, different land where which will come as we go along. That is the future.
Yash Gupta
Okay, sir. And sir, just last question on — can you throw some light on the Gija Mata? Because I think in this PPT, this time in the PPT, we have mentioned that 2.1 million square feet is of mall and around 700 square feet of service plus hotel.
Irfan Razack
Yeah, see Vija Mata, very correct, there is residential, there is hotel and there is retail and we are trying to see whether we can fit-in service apartments also. We have appointed SOM as an architect and they have given a preliminary design and the — in fact, even just the other day, my partner sent me a mail saying that IoD has been approved.
We need to pay certain fees. So it’s all work-in progress. It’s — we have to still freeze a lot of planning there. There. I think it will start coming as soon as we can. But now our focus in Mumbai is not in and that is Amera road
Yash Gupta
Okay. Thank you, sir. Last one, recently, we have done some new launch of hotel and Lear airport in Mumbai. So is that understanding correct? But I think we have not mentioned that in the PPT.
Irfan Razack
I don’t know which is that, which is that you said?
Yash Gupta
In Mumbai near airport, international airport, you have done some launch something kind of for the hotel, five acres and half acres of hotel.
Irfan Razack
So there’s no hotel near the international airport in Mumbai. There is in you are saying there is a last piece of land, which we are in discussion, we may do office over there, but still it’s work-in progress. Nothing has been formalized.
Yash Gupta
Okay, thank you very much.
Operator
Thank you. A reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Parikshit Kandpal with HDFC Securities. Please go-ahead.
Parikshit Kandpal
Yes, sir. Thanks for the follow-up. My question is on BKC. You said that you have pre-leased some areas. So what kind of rental rates you’ve been able to achieve there?
Irfan Razack
No, no, that is what I said. Can I tell you the rate, not can I tell you the customer it — it is a little — we have this confidentiality which we find with the customers. But I can tell you we have leased-out approximately over 500,000 square feet.
Parikshit Kandpal
And I think our budgeted rate earlier was INR320 per square feet. So is it better than that or like how should — I
Irfan Razack
Mean, whatever is what no, no. On a 320 where-is it 320?
Parikshit Kandpal
I mean earlier in your earlier presentations you used to disclose rental potential from the and the business,
Irfan Razack
But I believe it can go below. But at the same time, honestly, I cannot tell you specifically how much we have done the transaction for. Obviously, when I’ve given you indication that that’s our expectation. Obviously, it has to be better than expectation, not below.
Parikshit Kandpal
This is maybe better than expectation you are saying so. Okay,
Irfan Razack
Please.
Parikshit Kandpal
Okay, sir. And sir, just one more question on business development now. So You have now raised money of capital with you, cash flows will start coming in as the launches happen. So how do we read now into business development in the year — in the quarters coming in? So how is the pipeline looking there and what kind of land-bank additions one should be factoring in assumptions for next year.
Irfan Razack
No, no business development is work-in progress like what happens after our QIP, we’ve bought land in Mumbai, we bought land in Goa, we’ve invested in Bangalore, almost INR1,70 crore crores has gone into land and obviously that will come back once the approvals come in, it will come into the company in terms of additional cash flows.
Parikshit Kandpal
Okay. And in NCR sir, especially on the side, any anything you were able to freeze there in terms of business development? Because I think there has been a lot of work-in progress going on there and you’ve been talking about that something will — good news will come in soon. So any progress on the Gurgon side?
Irfan Razack
Well, not really. Not more opportunities. There’s enough and more land that is offered to us on a daily basis. We have to evaluate that. So our focus now today will be to see that what we’ve invested in that we are able to launch and cash-out that will give us the confidence to do more.
There’s no sense in pouring more-and-more money into a region which is a sort of get blocked. So we don’t want to get blocked. We definitely want to see that the liquidity comes in. That’s how we would like to turn capital. So offers are there, plenty of opportunities there and it has to be the right opportunity, right price and we always have an open mind.
Parikshit Kandpal
Okay. And just last question is trade center. I think Dial Aero City, you said that entire office has been now pre-leased. So is it like the area will be point — your share will be about 0.4, right? 0.8 is total and your share is 50% will be 0.4 million square feet here, right?
Irfan Razack
0.8 and 6 according to me. Points, whatever it is, but it’s an SPV. So prestige is 50%, DV is 50%. So that’s how it is.
Parikshit Kandpal
And what to be — if you can give the rates here because you said it’s entirely leased down. So huh? Can you give these rentals rates which you have logged-in here because you told that it’s entirely leased-out now.
Irfan Razack
Leave that’s why I said I can’t tell you the client’s name or the rent. It will come out, it will come out very soon.
Parikshit Kandpal
Okay,
Irfan Razack
It’s a very decent rental.
Parikshit Kandpal
Okay. Sure, sir. Thank you.
Irfan Razack
Bye-bye.
Operator
Thank you. A reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Shah from Pinpoint. Please go-ahead.
Jeet Shah
Hi, sir. Am I audible?
Irfan Razack
Are you audible. You’re audible.
Jeet Shah
Hi, hi, sir, congratulations on the quarter. Just a request. Could you please repeat what’s been the latest update on the project. You mentioned in the beginning about the recognition and can suddenly you become —
Zayd Noaman
I will give you the update on the project. We’ve applied for RERA and it’s — I think there is a work-in progress. So I think within a month’s time, the next three to four weeks, we should have a launch.
Jeet Shah
Okay, so you still fairly confident it comes through in this quarter, right?
Zayd Noaman
I’m not able to hear you. Not audible at all.
Jeet Shah
Hello, hello. Hello.
Zayd Noaman
Yeah, hi.
Operator
Go-ahead, sir.
Jeet Shah
Yeah, I just wanted to reaffirm like wanted to ask if you’re fairly confident that comes through this quarter.
Zayd Noaman
Yeah, yeah, we will launch this quarter.
Jeet Shah
Sure, thanks. Good luck.
Operator
Thank you. Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference to the management for closing comments.
Zayd Noaman
Thank you very much for all the feedback and questions. We understand that you are eagerly anticipating our financial year and launches to grow as per plan and we also are mightly confident that we will make it happen. We’ve never disappointed and we will not disappoint. So we have wish you all the best and thank you for participating in today’s call.
Irfan Razack
Thank you for all participating. Let’s hope the next two months go well and we are able to launch the way we have planned. But I believe demand is there. Company is quite robust in their activities and the whole team is really putting extra effort to see that we will succeed and time will tell. Thank you. Thank you again.
Operator
Thank. On behalf of Axis Capital, that concludes this conference. Thank you for joining us and you may now disconnect your lines.