Images Malls Report

SHOPPING CENTRE DEVELOPERS & DEVELOPMENTS

ABOUT IMAGES GROUP The IMAGES GROUP, a retail support organisation with research & consulting, publications & portals, education & training, events and awards as its forte, has been actively involved with over 2,500 key brands, retailers, and shopping centre developers from across the globe and the entire retail support network for the past 15 years. IMAGES has received global recognition for its bold initiatives – developing Indian market, making consumers aware and growing retail. IMAGES fora (conclaves, CEO meets, exhibitions and awards) attract industry stalwarts and have almost cent per cent attendance of key stakeholders of the retail industry. IMAGES also officially represents India in various international fora. IMAGES F&R Research wing has been closely monitoring the trends in the market and has been feeding the industry, Government and media with vital information for strategy formulation. Research has been the backbone of all IMAGES B2B and B2C publications, events, awards and various activities. IMAGES’ concepts of demand creation among consumers have excited the world’s best media powerhouses and many are partnering with IMAGES to launch a number of niche consumer and business magazines in India.

www. imagesfashion .com • www. indiaretailing . com

•

www. imagesretail .com

Editor-in-Chief

Amitabh Taneja

Editorial Director

RS Roy

Advisory & Planning

SP Taneja and Anjali Sondhi

Editorial

Vaishali Dassani, Zainab Morbiwala, Manish Pareek

Creatives

Pawan K Verma, Dinesh Rawat, Deepak Verma, Mohd Shakeel Ahmed, Amit Malik, Prakash Jha

Production

Manish Kadam, Ramesh Gupta

PRESIDENT & PUBLISHER: R RAJMOHAN IMAGES MULTIMEDIA PVT. LTD

IMAGES F&R Research

GD Singh, Director Saon Bhattacharya, Research Associate Amrita Datta, Sr Research Assistant Swamy SM

Photographers

Vipin Kardam Arnab Mitra (Kolkata) Fotocorp (Mumbai) Durga Prasad (Bangalore) Charles David (Bangalore)

This book is sold to the condition that it, or any part of it, shall not by way of trade or otherwise, be sold, lent, re-sold, displayed, advertised or otherwise circulated, without the publisher's prior written consent, in any form of binding, cover to title other than in which it is published and without a similar condition including being imposed on the subsequent purchasers. While every effort has been made to avoid any mistake or omission, this publication is being sold on the condition and understanding that neither the publisher nor the printer would be liable in any manner to any person by reason of any mistake or omission in the publication or for any action taken or advice rendered or accepted on the basis of this work. IMAGES Multimedia, New Delhi, 2007

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Delhi: S-21, Okhla Industrial Area Phase II New Delhi - 110 020, INDIA T +91-11-40525000, F +91-11-40525001 E [email protected] Mumbai: 1st Floor, Bharat Tin Works Opp. Borosil Glass Works, Off Military Road Marol Maroshi, Andheri (E), Mumbai - 400 059 T +91- 22-29200043/46/51/52 F +91- 22-29209337 Bangalore: No. 523, 7th Cross, 10th Main (Jeevanbhima Nagar Main Road) H.A.L. 3rd Stage, Bangalore - 560 075 T +91-80-41255172, T/F +91-80-41255182 Kolkata: 60/260 Haripada Dutta Lane Ground Floor, Kolkata - 700 033 T + 91- 33-32920073/32576586 F + 91- 33-24296618 All material printed in this publication is the sole property of Images Multimedia Pvt. Ltd. All printed matter contained in the publication are based on information from those featured in it. The views are solely theirs and the editor and publisher do not necessarily subscribe to the same. Printed & published by R Rajmohan; printed at Rave India, Naraina Phase II, New Delhi and published at S-21, Okhla Industrial Area, Phase II, New Delhi110020. Editor: Amitabh Taneja

PART I: Introduction

13

EXECUTIVE SUMMARY

14

SECTION I: Retail Real Estate Market Overview

19

INDIA SCENARIO

20

COMMERCIAL REAL ESTATE IN INDIA

27

GLOBAL REAL ESTATE OVERVIEW

34

Contents

SECTION II: Consumption Trends For Shopping Centre Development

49

CONSUMPTION TRENDS IN INDIA

50

CONSUMER DEMOGRAPHICS & CHANGING CONSUMPTION DEMANDS INNOVATION IN UPCOMING MALL PROJECTS

54

SECTION III: Mall Development: A Process Study

63

CHAPTER I: Mall Design & Project Implementation

65

MALL DESIGN & PROJECT IMPLEMENTATION

66

DESIGNING INDIA'S MALL POTENTIAL

72

DIFFERENTIATION: BUILDING SPECIALITY MALLS

76

FUNDING REAL ESTATE DEVELOPMENT IN INDIA

78

LEGAL FACTORS IN RETAIL REAL ESTATE DEVELOPMENT IN INDIA

85

CHAPTER II: Anchoring A Mall

93

ANCHORS IN MALLS

94

CASE STUDY: THE MULTIPLEX STORY

96

BUILDING A MALL AS A BRAND

104

MAKING OF A MALL: CASE STUDY - SELECT CITYWALK

112

SECTION IV: Mall Management

117

GOOD MANAGEMENT STARTS AT THE TOP

118

EXPORTING INTERNATIONAL MANAGEMENT PRINCIPLES TO AN EMERGING MARKET

124

ARE INDIAN MALLS SAFE?

131

BUILDING A MALL

146

SECTION V: Mall Space In India: A Demand & Supply Analysis

149

PART II: Mall Profiles

157

NORTH ZONE

159

WEST ZONE

223

SOUTH ZONE

267

EAST ZONE

305

KEY FINDINGS

334

CONTRIBUTORS PAGE

338

PART I INTRODUCTION

The Forum, Bangalore

PART I INTRODUCTION EXECUTIVE SUMMARY

EXECUTIVE SUMMARY Malls in India 2007

A

ccording to the first IMAGES Malls in India publication in 2004, 40 million sq.ft of retail real estate development had been predicted by year 2006. With the pronouncement that not only metropolitan centres, but tier-II cities, such as Indore, Jaipur, Ludhiana and Meerut, would see growth in mall space too. It had been further pronounced in 2004 that the retail estate industry in India had passed the initial growth stage and was in a state of 'acceleration', with a few cities even indicating signs of 'saturation' for the then organised retail market size. It was also pointed out that the growth of malls had far surpassed the growth of organised retail; making it imperative for malls, for the sake of increased market penetration and profitability, to attract local high street retailers too instead of limiting their 14

PART I INTRODUCTION EXECUTIVE SUMMARY

The book lay down key challenges for future developments (such as: providing the 'evolved' Indian consumer with unique shopping experiences, creating sustainable business models for malls, working towards improved infrastructure facilities, setting up design standards and preparing a regulatory framework with policy makers of the country etc.) and studied the viability of various retail estate formats in India. Significantly, the first edition had compared and contrasted Indian market developments with more developed markets, eliciting learnings for the Indian mall developer. Over and above everything else, it was felt that malls had come to the rescue of organised retail in India with the offer of quality retail space at lower values than comparable high street locations. The practice of retail space selling, however, had been identified even then as a problem area; hoping for more professional and standardised mall management practices in the years to come. Key Enablers It was felt that the key enablers required for the industry to realise its full potential include: • Improving overall access to real estate by deregulating the land market, putting in place easier zoning provisions, standardising building specifications etc. • Providing industry status to the sector for government/central sponsorship that could identify and resolve bottlenecks in the sector • Enabling FDI for faster growth and inculcation of better techniques/technologies into the

industry • Increased technical training for unskilled/under-qualified youth for increased employment opportunities for a quality manpower starved sector • Reduction of taxes on luxury goods to create retail tourist destinations • Rationalising the tax structure for the retail industry • Streamlining regulations and doing away with the hassles of multiple licences and clearance requirements

FINDINGS FROM THE SECOND EDITION OF IMAGES MALLS IN INDIA Come September 2005 and the second edition of the IMAGES Malls in India study was released. This publication revealed that the then current rate of growth in mall space was around 100 per cent! The pace, it was felt, had slowed down – from more than 200 percent growth in 2003, it had scaled down to 140 percent in 2004 and was expected to remain in the vicinity of 100 percent in 2005. By end-August 2005, India had some 96 operational malls offering 21.6 million sq.ft of quality retail space and considering the fact that another 62 malls were at a near-completion stage, a further increase of 11 million sq.ft was expected by the end of 2005. The projection for 2007 was 358 malls with a total built-up area of 87.8 million sq.ft. As predicted in the earlier edition, apart from metropolitan centres prominent tier-II cities 15

The Forum, Kolkata

THE ROAD AHEAD

MGF Metropolitan Mall, Gurgaon

Mall development, it was felt, had been primarily driven by real estate developers who had taken the business of retail as seriously as the corporate and residential sectors. Following this line of thought, the first-ever Malls in India edition had focussed on understanding the drivers, patterns and models of mall development across the country. It studied the general growth patterns of mall development in detail, while highlighting key opportunities for the Indian market.

Inorbit Mall, Mumbai

tenant profile to organised retail chains alone. It was also hoped that mall financing and mall management would improve over the next few years to accommodate a sustainable retail estate business.

PART I INTRODUCTION EXECUTIVE SUMMARY

where mall development was picking up included Jaipur, Ludhiana, Guwahati, Dehradun, Sonepat, Chandigarh and Indore.

R Mall, Mulund

It was felt that the retail journey from traditional bazaars to supermalls, with a detour towards luxury retail spaces within high-end hotels, had seen an unprecedented evolution over the last decade. Malls had emerged as present day adaptations of India's unorganised bazaars; changing the way Indians' shop forever. With more supply in the offing, quantum retail spaces were expected to increase. It was felt that older malls would have to re-position themselves as neighbourhood malls, with specialty malls joining the bandwagon. It was also felt that FDI in retail would lead to improved infrastructure, leading to an upgradation of the quality of shopping malls and an increased demand for huge retail spaces. Development Trends The study also showed that in India the scarcity of quality real estate at affordable rentals has traditionally been a key challenge to growth of modern trade. The difficulty in finding suitable urban properties in central and downtown locations for large format retail stores had led to a shift in preference for suburbs of metropolitan cities, such as Gurgaon and Navi Mumbai, together with growth in tier-II cities. The research further revealed that a great majority of the new shopping malls being developed remained fragmented and sub-optimally planned in terms of proper positioning and inadequacy of infrastructure. As the industry matured, it was predicted that smaller niche/speciality malls would emerge in the country. In a scenario of potential over-supply of 'me-too' shopping

centres, these speciality retail destinations would perform better and generate higher returns. What followed was a detailed study of speciality malls and the viability of the format in an Indian scenario. Mall Design & Mall Management The edition also highlighted the importance of effective mall design and successful retail space management. It was felt that current market forces demanded the creation of more dynamic and distinctive shopping environments for two reasons – global competition and the continued segmentation of retail offerings into ever more specific demographic targets. Having experienced the evolution of shopping centres in less than 10 years – a process that has taken place over 60 years around some parts of the world – India stands to benefit greatly from the lessons learnt elsewhere around the globe. The savviest commercial developers in India have recognised that the challenges of shopping centre design and management require a blend of learning from international experiences balanced with 'Made in India' solutions. Financing Malls It was pointed out that as in any commercial real estate project, financing of retail mall developments runs parallel with development. In instances where the landlord is also the developer, the value of land net of any applicable debt constitutes a significant component of equity. The significant part of financing is hence required for construction. The key issue in most such development formats relates to property valuation and its impact on returns as indicated by a financial measure like the project's Internal Rate of Return (IRR). More so than with other forms of commercial real estate development, large-scale retailing involves a closer interplay between the tenant (retailer) and the developer and greater flexibility in partnership across the scheme.

Growels 101, Mumbai

It was discussed that as is the case of any commercial real estate, retail developments take place where supply and demand conditions need to be augmented to fulfil the new demand. Moreover the form and grade of such supply and demand drivers are the key influence on the structure and pricing of any development. Finally the capital value reflects the rent and the yield, the latter being a reflection of sustainability of location and rent, future growth, investor demand and comparative returns in other investment arenas. With additional factors like taxation and income 16

Shipra Mall, Ghaziabad

PART I INTRODUCTION EXECUTIVE SUMMARY

security also impacting, it is clear that the economic model for retail real estate is quite complicated, even without consideration of factors such as trading potential, catchment growth, changing consumer habits etc.

WHAT MAKES RETAIL REAL ESTATE DISTINCT • Greater involvement by retailers themselves as developers and owners • Typical requirement for a higher level of pre-leasing prior to completion enabling a large degree of customisation • The importance of anchor stores in leasing and in securing finance for the project • Greater variety in leasing deals as a function of the anchor's importance • Importance of tenant mix • Often not fully let out prior to opening to give flexibility to alter tenant mix and extract higher rents from retailers seeking to join a successful scheme • Greater need for research due to the often more focused locational requirements of retailers

Conclusion The organised retail sector is at a brink of revolution. The past decade has witnessed a sea change in the Indian retail scenario, affecting both the supply and the demand fronts of the market. On the supply front, a number of organised retailers have entered the trade in the last five years. Mall development activity has picked up at a rapid pace, thereby, creating quality space for retailers to fulfill their aggressive expansion plans. It was felt that the Government of India too was looking at setting in place mechanisms to ensure that the opening up of retail to FDI would be designed in such a way that

many sectors would reap benefits – a prediction that has partly come true. Unavailability of quality retail space was seen as one of the main constraints for development of organised formats in India. It was felt that negative yield on leased property and lack of financing due to the unorganised property market had resulted in a dearth of quality retail space in the country. A significant reduction in interest rates over the past few years had helped. Availability of retail space was, however, expected to increase further if property funds and investment trusts were permitted, which would help create a secondary market for real estate in the country. With greater availability of real estate, the average size of malls was expected to increase, leading to better infrastructure, lower rents and more services that could be offered by retailers at a single place. It was also pointed out that an increasing number of such malls had already become operational in the new suburbs around major metros and a total built-up area of about 87.8 million sq.ft of retail space was under construction and was expected to come on stream by 2007. The 2005 edition closed with the mature perspective that over time, the novelty value of malls in India would wear off and it would be back to the basics of positioning, footfall conversion and of course profitability. A number of developers were already experimenting with various concepts to arrive at a suitable, sustainable and financially viable approach to mall development. The next couple of years were to be critical for the industry, with a few malls becoming successful while others not being able to survive the trials and tribulations. The learnings from both these publications will establish the roadmap for further retail real estate developments in India for the current edition in the following pages.

17

SECTION I

RETAIL REAL ESTATE MARKET OVERVIEW

SRS Mall, Delhi NCR

SECTION I RETAIL REAL ESTATE MARKET OVERVIEW

INDIA SCENARIO

M

all and Shopping Centre development is a direct function of the health of the country’s Organised Retail industry and the Real Estate sector in general. Organised retailing, as we know, has taken-off to a flying start and is projected to grow at the rate of 37 percent in 2007 and 42 percent in 2008. Fortunately enough, the Real Estate story is equally encouraging, especially after the relaxation in FDI norms in 2006 and the enthusiasm of Indian corporate houses in mega Special Economic Zone (SEZ) projects. The real estate story in India is now growing bigger by the day. Industry experts are optimistic that there exists huge demand potential in Indian real estate in almost every sector – commercial, residential and retail.

20

In the last couple of years the growth in commercial office space has been fuelled by the burgeoning demand for space in the outsourcing and information technology (IT) industry. By 2010, the IT sector alone is expected to require 1,500 lakh sq.ft of space across major cities. Growth in the services sector, accompanied by impressive growth in the overall gross domestic product is sure to generate commensurate growth in demand for residential space as well. It is estimated that in the residential sector there is a shortage of 194 lakh units out of which 67 lakh are in urban India. The increase in purchasing power and exposure to organised retail formats has redefined the consumption pattern. As a result, retail projects have been mushrooming across even teir-II and tier-III cities. The retail market is expected to grow at around 35 percent. Industry observers feel that this growth is facilitated by favourable demographics, increasing purchasing power, existence of customer-friendly banks and housing finance companies, professionalism in real estate and reforms initiated by the Government to attract global investors.

Food court at a popular Indian mall

SECTION I RETAIL REAL ESTATE MARKET OVERVIEW

The Tata Group has joined hands with private equity firm, Xander, through its group company Trent, in April 2007, to raise US$1 billion for an institutional retail real estate fund. India's top real-estate firm, DLF, too has raised US$2.24 billion in the country's largest initial public offering in June 2007.

GLOBAL MAJORS IN INDIAN REAL ESTATE Policy changes introduced by the Government in February 2005 allowed 100 per cent foreign investments in construction projects with fast-track approvals. But the real attraction for foreign investors is potential investment returns of 25 percent and more in Indian projects that might be hard to come by in the US and in Western Europe today. A report by property consultants Jones Lang LaSalle Meghraj estimates that US$10 billion foreign investment will be injected into the Indian real estate sector in the next 12-18 months. International companies like Ayala of the Philippines, Signature from Dubai, Och-Ziff Capital, EurIndia and Old Lane have indicated their interest in entering the Indian real estate market soon. On the cards is sizeable FDI inflow from Malaysia, followed by the UK, US, Israel and Singapore. Industry sources say over 90 foreign investors are already in the country tapping investment avenues. Nearly two dozen US funds are raising US$3.5 billion for investments in Indian realty. Those raising the funds include Wall Street powerhouses such as the Blackstone Group (US$1 billion) Goldman Sachs (US$1 billion), Citigroup Property Investors (US$125 million), Morgan Stanley (US$70 million) and GE Commercial Finance Real Estate (US$63 million). Others raising funds are JP Morgan, Warburg Pincus, Merrill Lynch, Lehman Brothers, Warren Buffett’s Berkshire Hathaway, Colony Capital and Starwood Capital. In mid-2007, Morgan Stanley closed a deal worth about US$150 million with Oberoi Constructions in Mumbai. The Nakheel Group in Dubai entered into a US$10 billion deal with DLF for residential projects in tier-I and

tier-II cities. This was followed by three financial institutions – Khaleej Finance and Investment (KFI) from Bahrain, Kuwait Investment Company (KIC) and Kuwait Finance House (KFH) – from the Middle East promoting a US$200 million fund for investing in India. Called the 'Indian Private Equity Fund', it targets activities with controlled risks in growing sectors like real estate. Close on its heels, California Public Employees’ Retirement System entered India, investing US$100 million in a US$400-million real estate fund promoted by IL&FS. Ascendas, Asia’s leading business space provider is launching the first property trust of Indian assets worth US$500 million in Singapore in July 2007 with the renowned real estate developer Embassy Group.

FINANCIAL INSTITUTIONS IN REAL ESTATE Indian financial institutions are competing with each other to invest in this higher return segment. Some of the prominent companies promoting real estate funds in India are HDFC Property Fund, DHFL Venture Capital Fund, Kotak Mahindra Realty Fund, Kshitij Venture Capital Fund (a group venture of Pantaloon Retail India Ltd) and ICICI’s real estate fund, India Advantage Fund. Regulated under SEBI’s (Securities and Exchange Board of India) Venture Capital Funds, these are closed-ended schemes with an initial public offer (IPO) contributing to a discount on NAVs (Net Asset Value). 21

SECTION I RETAIL REAL ESTATE MARKET OVERVIEW

Brand Factory, Hyderabad

The Tata Group has joined hands with private equity firm, Xander, through its group company Trent, in April 2007, to raise US$1 billion for an institutional retail real estate fund. India's top real-estate firm, DLF, has raised US$2.24 billion in the country's largest initial public offering in June 2007. It has also entered into a joint venture agreement with Indian pharmaceutical major Ranbaxy Group company Fortis Healthcare to set up hospitals across the country with investments of about US$1.5 billion. Meanwhile, an HDFCsponsored real estate fund has been permitted to bring up to US$ 790 million of FDI into the country, while Indiabulls Real Estate (IREL) is looking to raise up to US$1.2 billion.

RETAILERS AND MALLS

With the retail sector experiencing a boom, the country is witnessing a spurt in extremely large retail spaces. Shopping malls with over 10 lakh sq.ft of space have become the order of the day. About 20 of these are now at various stages of construction across the country. In the National Capital Region (NCR), Unitech's Great India Place has a million sq.ft of retail space. In Mumbai, at least eight malls covering over 10 lakh sq.ft each, including R-Mall at Ghatkopar, and two malls of over 10 lakh sq.ft, proposed for Thane. In Bangalore, at least three malls with similar dimensions are under development. Ludhiana will soon have a 16 lakh sq.ft mall by Today Homes.

India has emerged as the most attractive destination for retailers in 2007. According to the latest AT Kearney study, for the third year in a row, India leads the annual list of most attractive emerging markets for retail investment followed by Russia and China. Organised retail, which currently accounts for only 4.6 percent of the Rs.1,200,000 crore (US$270 billion) Indian retail sector, is expected to grow at 37 percent in 2007 and 42 percent in 2008, according to IMAGES India Retail Report 2007. The report adds that organised retail in India has the potential to add over Rs.1,00,000 crore (US$45 billion) business by the year 2010.

As the competition in the market intensifies, mall developers are trying out all possible ways to be different. Specialised malls, designer brands and multimovie options are marking the shopper's day out. Gurgaon, on the suburbs of New Delhi, has a jewellery mall and will soon have an auto mall. Bangalore will get an exclusive furniture mall. Two malls, first of their kind, targeting foreign tourists, will come up at tourist hotspots – Goa and Udaipur – with a projected cost of around Rs.90 crore (US$22 million) each.

This is expected to create a demand for around 2,200 lakh sq.ft of retail space by 2010. According to industry estimates, 270 lakh sq.ft of organised retail space is currently available. Another 900 lakh sq.ft is expected to be added by 2008 from 263 mall projects. Of these, 180 lakh sq.ft is slated to come up in Delhi as well as in Mumbai, 95 lakh sq.ft in Ludhiana, six lakh sq.ft in Chandigarh and 36 lakh sq.ft in Ahmedabad.

Amusement Park at Noida

A furnishings mall is coming up on Elgin Road in Kolkata. And India's largest theme amusement park, Noida Entertainment City (E-City), will stand upon 65,34,000 sq.ft (150 acres) approximately. Discount malls are also on the rise. Top realtors and local retail chains are developing malls in regional boroughs, specifically to sell premium branded goods at prices 30-40 percent cheaper than the maximum retail price. At least 50 discount malls are expected to come up in the next two years across the country, positioned in the middle-to-the-premium end of the market. In what could perhaps become a trend in the booming retail business, Reliance Retail, Future Group and Bharti-Wal-Mart are among leading retail companies that are acquiring housing societies and colonies in Ahmedabad to knock down and build mega-retail stores. 22

SECTION I RETAIL REAL ESTATE MARKET OVERVIEW

BIG DEALS IN REALTY The biggest mall of the world – Mall of India – planned by DLF Universal along NH-8 – will have 32 acres (13,93,920 sq.ft) spanning a huge entertainment area and large city town squares offering a total retail experience.

A large number of retailers, which also includes traditional retailers, are now planning to expand within the current city, and a good percentage of them are also willing to open new stores in other cities within India. The most confident among them are home and interior retailers and sports apparel/equipment retailers, followed by department stores and jewellery and food retails. Space within upcoming malls will obviously be the first choice. The last decade saw the transition of sleepy towns like Gurgaon, Noida and Faridabad into enviable retail addresses, and today these are classified as tier-I cities along with the core, NCR in this case. These cities are now almost saturated. Naturally, the opportunity in the tier-IA, tier-II and tier-III cities – like Hyderabad, Cochin, Chennai, Coimbatore and Pune – is equally enormous. For instance, Pune, the engineering and automobile hub of western India – about 160-km south-east of Mumbai – is emerging as a major IT centre. With sprawling software parks coming up all over the city and its suburbs, the demand for high-value apartments is growing and so is the potential for shopping centres. Beyond professionals and people looking to relocate from Mumbai or even overseas, are the older people who have sold a bungalow and want to live in spacious,

Ishanya complex, Pune

Chennai, on the radar of foreign real estate funds, recently witnessed two big-ticket property deals. AIG Real Estate Fund and RMZ Corporation purchased an 11-acre (4,79,160 sq.ft) plot at Guindy for Rs.2,816 crore (US$686.9 milion) and Shyam Kothari, in another deal, bought IDBI's 2.5 acres Boat Club property in Chennai for Rs.165 crore (US$40.3 million).

but easy-to-manage surroundings. Developers maintain that the bar for the super-premium luxury housing has risen from Rs.9,511,938 (US$231,964) to over Rs.19,023,918 (US$463,929) per unit. If the year 2006 was marked by some of the country's biggest land deals, the future of India is set to usher in the gold rush of realty.

MACROECONOMIC FACTORS AFFECTING DEMAND AND SUPPLY OF REAL ESTATE Economic Growth Sustained growth has made India the world’s fourth largest economy in terms of purchasing power parity. Forex Reserves of US$175 billion (Dec 06) (source: Reserve Bank of India), current GDP growth rate of 9.2 percent, positive market sentiment and business optimism are expected to make India’s GDP the third highest in the world by 2020 (source: KPMG). Economic growth over the past three years has been consistent with an average annual growth rate of eight percent (Figure 4) and, as this growth is led by investments in the economy, it is likely to be more sustainable than earlier spurts in GDP growth. The agriculture sector has minimal effect on retail real estate in India; hence a slowdown in agriculture doesn’t affect the sector in a major way. The manufacturing sector, which is growing at 11 percent (source: Economic Survey of India 2006-07), has a positive impact on industrial real estate but its effect on commercial real estate is marginal. It is primarily the services sector that accounts not only for the majority of office space absorption in India, but also fuels the growth in the residential and retail sector. 23

SECTION I RETAIL REAL ESTATE MARKET OVERVIEW

With GDP growth expected to continue at a level above nine percent per annum (as per latest government estimates), the impact on retail real estate in India is expected to remain positive. Inflation, which was 6.39 percent in the week ended March 24, 2007, and posed a major concern to all the good work, now thankfully appears to be getting under control as a result of stringent policy initiatives by the Reserve Bank of India. One of the factors which has lead to high inflation (apart from rising oil prices) is the supply constraints of food grains and other essential commodities which are an important component in the basket of goods on which inflation is calculated. Though long-term structural changes are required in the economy to tackle such demand supply mismatches, in the short term measures such as regulating the money supply and interest rates are being taken to control inflation. An area of concern here is that continued high inflation can significantly impede real estate growth as the government tries to rein in liquidity and increase interest rates. High inflation is directly linked to the government’s performance in public opinion and the government will not hesitate to cut down on growth in its bid to cut inflation. Money Supply As against the RBI’s target of 15 percent for annual growth of money supply for 2006-07, money supply actually grew at 21.1 percent during this period mainly because of growth in bank credit. RBI’s steps to reduce credit availability include increasing the refinancing rate, the Cash Reserve Ratio (CRR) and bank lending rates. All

Delhi's traditional CBD, Connaught Place

Inflation

these steps have resulted in funds flow to developers as well as borrowers being constricted and a consequent increase in borrowing costs. Interest rates The change in liquidity and inflation environment has resulted in a continuous hardening of interest rates from 2005-06. Home loan rates, too, have been on an upward climb, and are expected to continue rising over the next 12 months. This is expected to impact residential demand as borrowers face higher repayment instalments. Developers will face higher cost of funds and would have to look for alternate sources such as private equity/venture capital (PE/VC) while investors revise their expected returns from the real estate sector. Credit Off-Take

DLF City Centre Mall, Gurgaon

In the last three years, real estate has been one of the prime sectors driving the credit growth with lending to the sector rising by more than 500 percent (source: RBI). Viewing this with concern, RBI has taken steps to reduce the flow of bank credit to the sector as well as making it more expensive for banks to lend to. This tightening of bank lending to real estate has led to a steady increase in interest rates on loans available to the real estate sector. Regulatory Like any other sector, government policies and regulations have a critical impact on the functioning, growth and maturity of the real estate market. The government and RBI have increasingly been wary of the rising prices in the real estate sector in the recent years and have taken various steps to control the money fl 24

SECTION I RETAIL REAL ESTATE MARKET OVERVIEW

Banks were restrained from granting fresh loans in excess of Rs.20 lakh against NRE (Non-resident external accounts) and FCNR (B) (Foreign Currency Non Resident) deposits. RBI has also urged all commercial banks to put in place an improved system/procedure for realistic valuation of properties and appoint independent valuers for the purpose. The need for an agency to set up valuation standards to be imparted through impartial, professional, accredited valuers is also being felt. In the 2007 union budget, the government announced various policies which had a somewhat dampening effect on the real estate sector. Tightened regulations governing developments of Special Economic Zones (SEZs) by disallowing tax concessions to contractors involved in the construction work, income tax on venture capital income – interest and capital gains (interest and capital gains from their investments in real estate) were some of the measures taken. Service tax was extended to renting of property for commercial use that could have a major impact on the retail segment as real estate costs are as high as 30 percent of total project costs in some cases.

Traditionally the Indian real estate market has remained largely disorganised, with the chaos of the real estate industry affecting other sectors of the economy too. But over the last few years, the Indian real estate industry has started getting organised. What was once a highly fragmented business dominated by regionally based private entrepreneurs (or ‘builders’) has become a national and global business. This transformation has come about because of a significant growth in capital formation in the real estate industry and the rise of sophisticated real estate capital markets. This has been driven by: • Listed as well as unlisted real estate companies • Private real estate funds catering to institutional investors, and • A bigger focus on Indian real estate by global property consultants and commercial banks

Over the last few years, the Indian real estate industry has started getting organised. What was once a highly fragmented business dominated by regionally based private entrepreneurs (or ‘builders’) has today become a national and global business. The recent changes in the regulatory environment, the opening up of the market to foreign investors, the growth of private equity and rising demand for higher quality real estate is gradually transforming Indian real estate into a more transparent and accessible real estate market. Add to this all the feverish activity within the Indian

DLF IT Park, Kolkata

The Securities and Exchange Board of India (Sebi) has tightened the disclosure and valuation norms for real estate companies planning to launch initial public offerings (IPOs) to impart a true picture of their property values. Such companies have to mandatorily disclose their land bank details along with ownership status. India needs to urgently adopt international valuation norms to ensure greater transparency and confidence in the sector.

REAL ESTATE MARKET IN INDIA

Crossriver Mall, Delhi NCR

owing into the sector. RBI increased the provisioning requirement for banks from the earlier 0.4 percent to one percent for all residential housing loans beyond Rs.20 lakh and to two percent on all commercial real estate loans (including SEZs).

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SECTION I RETAIL REAL ESTATE MARKET OVERVIEW

economy at large, and one realises exactly why the country’s real estate market is expanding so rapidly. After all, each growing sector is in need of ‘space’ to spread its wings, and no wonder real estate is emerging as one of India’s fastest growing sectors, with expectations for all its constituent segments to expand rapidly: Commercial Market Reliance Mart, Ahmedabad

• About 70 percent of demand for office space in India is being driven by the IT/ITES & BPO sectors • CBDs are getting saturated across all metros and an increasing rate of suburban/peripheral developments are catering to the roaring demand for office spaces • While MNCs and financial institutions preferred CBD areas, the IT/ITES sector does not favour these because of infrastructure problems, old constructions, unavailability of large floor plates and high rentals. Strong growth in the demand for commercial office space will continue to be fuelled by the rapid expansion of the IT/ITES sector, which is growing at more than 30 percent a year. Employment in IT/ITES currently stands at nearly 13 lakh, and is expanding by well over 200,000 jobs per year (equivalent to an additional office requirement of more than 200 lakh sq.ft per year). Over the medium term the opening up of the economy is expected to lead to a broader occupier base, as Indian business services expand in response to domestic demand. Production and operating cost reductions are the primary reasons for increased business process outsourcing by US and European companies to India. The total workspace needed for an office in Bangalore, for example, is no lower than it is in London, but the total occupancy cost is much lower. The most important office locations are in the Central Business Districts (CBD). It has only been in the last few years, as space has become more limited in the CBDs and new higher quality offices with lower prices have been built in peripheral locations, that demand has shifted from downtown areas out to the new locations. Most recently, additional development areas, with a City

Space per Worker (sq.ft)

Total occupancy costs (Euro) per work station per annum

Bangalore

126

2,734

Mumbai

108

7,062

Beijing

90

3,890

Singapore

99

3,790

Frankfurt

198

10,692

99

15,559

189

10,500

London New York

mixture of office, retail and residential, have been built. Just like other global locations, the most important locational factors are the availability of staff, ease of access by car and public transport and regional growth potential. In Indian cities it is also important to access the technical infrastructure provision (e.g. electricity, telephones and water supply) to ensure that it meets requirements. Retail Real Estate Market Wal-Mart has made an India entry through a JV with the Bharti Group. Earlier the US retail giant was willing to gain access through FDI but the government's regulatory framework didn't allow it to do so. After Mukesh Ambani's Reliance Industries foray into retail, the AV Birla Group also launched its retail plan. At the same time, Tata, Raheja's, Future Group, Godrej, etc., are all working on business plans to amplify their retail activities across the country. Reliance has planned its retail outlets in all the major cities and is acquiring land at record prices With MCD's sealing drive in Delhi, supply crunch for retail spaces was witnessed, which led to an increase in retail estate prices across the NCR. India has huge potential for retail expansion, with rapid growth underpinned by favourable demographics, increasing urbanisation, rising disposable incomes, low interest rates, brand competition and youth culture. The sector is also undergoing structural change, with leading domestic retailers going through rapid growth, format migration and consolidation. The pace of change is likely to accelerate as foreign investment in retailing is liberalised – the government has taken the first steps in 2006 by allowing 51 percent FDI in 'single brands' retail outlets. Increasingly, organised retailing will focus on tier-II and III cities, which are still largely unexploited.

Source: RREEF Research

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The need for Grade-A Office Space is on the rise in India

SECTION I RETAIL REAL ESTATE MARKET OVERVIEW

COMMERCIAL REAL ESTATE IN INDIA BY ANKUR SRIVASTAVA > Managing Director, ABHILASH LAL > Director, SHUBHENDU SAHA > Senior Manager, GAUTAM SARIN > Assistant Manager, DTZ India*

T

he first few years of the 21st century have seen the world enraptured by the India story. Favourable comparisons with the world’s fastest growing economies, abundant talent pools, need for infrastructural investments and a large market have attracted investors across all industry segments. Retail, hospitality, healthcare, infrastructure etc. are bringing in international players keen to tap the latent demand in these sectors while the competitiveness in Information Technology and IT Enables Services (IT/ITES) has made India the back office of the world. All these factors have resulted in a continued healthy demand for real estate that, coupled with easy availability of capital, has seen a boom in the real estate (RE) sector in the last few years.

*Excerpts from the DTZ report on Commercial Real Estate in India (‘Norwegian Wood - This Bird has Flown’)

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With all indicators pointing to continued robustness in economic growth, one could expect the RE sector also to continue its path upward. However, a study carried out by DTZ reveals that the current boom may be cresting and this may be a time to exercise prudence.

DLF Corporate Park Gurgaon

Commercial real estate (which includes office space, SEZs and IT/Business Parks) can be considered the benchmark for the rest of the real estate market in the country as it is tracked professionally, is less opaque and more reliable information on it is available as compared to other sectors. Additionally, the commercial sector is the growth driver for other RE segments as the business prospects and employment generated in turn drive the demand for residential, hospitality and retail sectors. To be considered as a Grade-A office space, a building needs to have certain minimum requirements such as central air conditioning, professional building maintenance, good façade, 100 percent power backup, preferably single ownership and good tenant profile.

of this rental value correction; for example, the threshold for this correction has been brought closer by the two recent interest rate hikes.

Our study revealed that the A-Grade leasehold office space sector across our universe of cities (the top seven Indian cities of Bangalore, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai

That notwithstanding, we firmly believe that the Indian real estate markets are entering their next phase/wave of evolution. The Indian real estate cycle saw its last crest in 1995-96 and the following years saw real estate values come down across the country. This correction also marked the first wave of evolution of the Indian real estate markets. The prime drivers of this change were the large foreign occupiers/corporates and IT firms that were establishing their presence in India and the most pronounced impact of this wave was a complete redefinition of what constituted A-Grade office space (in India).

On an overall basis, after 1995-96, the Indian office space markets are now close to the second crest of the real estate cycle...

We are of the opinion that on an overall basis, the Indian office space markets are now close to the second crest of the real estate cycle (after 1995-96). And the change driver for this evolutionary phase of Indian real estate would be the sophisticated foreign capital that is finding its way into Indian real estate. This phase will again bring about significant changes in the Indian real estate sector and we believe that industry participants will go through a fast and somewhat painful structural changes.

and Pune) is seeing the beginning of an oversupply situation that will continue in the short to medium term. The Indian AGrade leasehold office space markets are currently at an all time high; both in terms of the quantum of space leased per annum and the prevailing rental values. Our city-level demand supply analysis clearly indicates that office space rentals are likely to hit a plateau in the next six to twelve months. Barring a few exceptions (primarily the CBDs), the oversupply situation will lead to a correction in office rental values. Or very simply, this correction in A-Grade office space rental values will not be driven by a lack of demand but due to the oversupply build-up.

INDIAN REAL ESTATE OVERVIEW The Indian Real Estate market is estimated at US$12 billion (source: FICCI) with a current growth rate of around 30 percent per annum. Although the initial real estate growth was concentrated in the major metros due to the growth of IT/ITES in India, there has been a shift in the real estate market beyond metros to tier-II cities (Figure 1).

However, rather than casting a pall of gloom, this may be an opportunity for all stakeholders to re-examine and reformat their strategy for the RE sector. With demand for good quality RE expected to remain healthy in the longer term, stakeholders, i.e., investors, tenants, buyers, developers and even regulatory authorities – should understand the implications of this forecasted correction and plan their real estate investment/ development/end-user strategies accordingly.

With India showing broad based economic growth, RE too has shown growth across all segments – commercial, retail, residential, industrial and hospitality. Office Space Segment The prime component of RE demand in India, Grade-A office space saw a demand of around 47 million sq.ft in 2006 and this

There are various factors that will define the degree and timing 28

SECTION I RETAIL REAL ESTATE MARKET OVERVIEW

of the Indian RE market in terms of value. Low per capita housing stock, rising disposable income coupled with easy availability of finance from housing finance companies and banks have been driving demand in this sector in recent years. The potential for housing is still large as even today, there is a shortage of 31 million housing units (source: NHB) and ASSOCHAM predicts this demand to grow to 80 million by the next decade.

Our city-level demand supply analysis, seen in conjunction with the macroeconomic fundamentals, clearly indicates that office space rentals are likely to hit a plateau in the next six to twelve months.

Delhi NCR has emerged as an IT/ITES favourite with absorption of 2.4 million sq.ft in 2005 that grew to 10.6 million sq.ft in 2006. Other Indian cities too have witnessed similar growth in office space absorption. As per current estimates, we expect the demand for Grade-A office space to stay on course in the immediate future. However, given the number of large projects announced recently and under construction, we could witness supply exceeding demand across cities. Rationalisation of rentals, quality of the end product and professional service delivery/marketing to support corporate clients would be critical in increasing the occupancy levels in this scenario of oversupply. Residential Segment The residential property market constitutes almost 75 percent

Office space at Nariman Point, Mumbai

is expected to grow to 56 million sq.ft in 2007. The Indian economy, led by the IT/ITES industry, has shown strong growth in the last three years that has resulted in increased absorption across most Indian metros and tier-II cities. For example, Chennai had a Grade-A office space absorption of 3.7 million sq.ft in 2005 which increased to 5.3 million sq.ft in 2006. At 9.3 million sq.ft in 2005, Bangalore was the third ranked city globally in terms of office space absorption (after Tokyo and London) and grew to12 million sq.ft in 2006.

Retail Segment The retail industry in India is dominated by individual small format stores with floor space of less than 500 sq.ft. The organised retail sector, which was a mere three percent of the total retail market in 2004, has attracted a lot of players and has grown to 4.7 percent of the total retail market of US$ 230 billion (source: IMAGES Retail Report 2007). However, as seen from Figure 2, this share is still low as compared to other countries and represents enormous growth potential. India’s fast growing economy, increasing disposable incomes and consumption levels have made it one of the largest consumer markets in Asia. Organised retail is thus expected to grow but would rely on appropriately priced real estate to reach out to its customer segment effectively. RE costs can impact the profitability of an entire retail venture and with high occupier interest, new supply coming up and old retail formats under threat, the sector will see some interesting times. Retail real estate construction and more importantly, mall management practices leave a lot to be desired and we are certain that the Indian retail real estate sector still has to undergo a significant learning cycle. This evolution will be clearly linked with 29

SECTION I RETAIL REAL ESTATE MARKET OVERVIEW

the increasing corporatisation of the retail sector and will be further catalysed by the entry of foreign retailers in India (as and when allowed). Hospitality Segment The number of foreign visitors (a major driver of hospitality industry) in the country in 2005 was around 4 million resulting in international tourism receipts of US$ 5.7 billion. With continued business and tourism interest, the hospitality industry is expected to show growth rates in excess of eight percent per annum. This rapid growth in visitors has already impacted the industry with most cities facing a severe shortage of rooms and hotels. It is believed, however, that the supply of hotel rooms is expected to increase steeply between now and 2010. Looking Ahead Though most parameters point to demand remaining strong, a slowdown in economic growth in India could affect the demand drivers and consequently growth in the real estate sector. Commercial real estate is largely dependent on demand from the IT/ITES sector, which accounts for nearly 70 percent of the total office absorption. With rising real estate and salary costs, India’s cost competitiveness in this sector could be challenged and any slowdown in this sector can adversely affect the commercial space absorption in various cities across India.

COMMERCIAL REAL ESTATE IN INDIA Growth Drivers Commercial real estate is an important component of the real estate sector as it has a positive effect on the demand for residential and retail as well. At current growth rates, the sector is expected to employ an additional 2.4 million people by 2012. At a prudent Employee Health and Safety (EHS) norm of 100 sq.ft per employee, this translates into an additional commercial space requirement of 240 million sq.ft. The increase in incomes due to these employees joining the workforce is expected to generate an additional demand for 12 billion sq.ft of residential space by 2012 (assuming 100 sq.ft commercial space requirement, 400 sq.ft of residential space requirement per employee). There are various factors driving the growth of commercial real estate in India: • Demographic Factors Indian demographics are poised to provide a broad based and sustainable economic growth. India has a very young population profile (Figure 3) with half of its people under the age of 25 years. This young and increasingly urbanised population drives significant demand for products and services, and has created massive opportunities from human resources

Signature Towers, Gurgaon

While the bull run in property prices has attracted the attention of regulatory bodies and led to restrictions in availability of capital, the attractiveness of the sector and steadily increasing demand have seen a number of players, both new and old, embark upon fresh constructions on a grand scale. Thus, though demand is expected to remain strong, the restrictions in capital availability will impact projects in the longer term. The projects already announced will see sufficient supply emerging across most cities and result in over supply in the short to medium term.

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SECTION I RETAIL REAL ESTATE MARKET OVERVIEW

India: 2020

Households Earning more than US$5,000 pa

Figure: 3

perspective. The IT/ITES industry is critically impacted by availability of adequate human resources and this demographic profile has made India a very attractive destination for these companies.

Figure: 4

financial services that are expected to be the next big drivers for office space. • Infrastructural The Central and State governments have realised the importance of improving urban infrastructure to truly realise the potential of India. Initiatives such as the Jawaharlal Nehru Urban Renewal Mission (2005) aim to put selected cities on the fast track of growth by encouraging infrastructure growth and thereby catalysing flow of investments into the urban infrastructure sector. Another infrastructure initiative, the National Highways Development Programme (NHDP), is also making impressive progress. The National Highway Authority of India (NHAI) is being restructured for more effectiveness and to be able to handle a large number of Private Public Partnership (PPP) projects. Work pace has improved on the Golden Quadrilateral (GQ) and the North-South, East-West Corridor projects – as against 1.86 km/day completed prior to May 2004, the schemes are now progressing at the rate of 4.48 km/day. All these initiatives should see ustainability of the demand for commercial RE in India.

Along with continued strong economic growth, real annual personal disposable incomes are also set to increase by eight to 10 percent annually over 2006-10. Figure 4 shows that the percentage of households in India, that earn more than US$ 5,000 per annum currently, is lower than that of China. However, this is expected to grow over the next four years to match China by 2010. As India emerges out of the shadows of its socialistic past and integrates increasingly with the regional and global economy, it is spawning a new rich class – the number of billionaires in India is already the highest in Asia, ahead of even Japan. This socio-economic transformation is making India an increasingly lucrative market for a wide variety of products and services. These include biochemical, leisure and

Outlook for Office Space

Infosys Building, Bangalore

The DTZ study conducted across the top seven cities (including their micro-markets) finds that the continuing healthy demand, attractiveness due to rising capital and rental values and easy availability of capital resulted in a large number of projects being started at major locations. While demand continues to be strong, the supply of quality commercial real estate is likely to outstrip the demand in the short to medium term. The chart below (Figure 5) summarises the likely demand supply scenario in 2007 across key cities in India. The authorities have sought to stem speculative interest in the sector and also to reduce inflationary pressures in the economy by curtailing availability of capital and increasing the interest rates. These measures will certainly impact new projects as developer/builders seek new sources of capital and PE/VC funds evaluate their strategies. As demand continues at current pace and fresh supply tapers off, 31

IT Park at Hi-Tech City, Hyderabad

SECTION I RETAIL REAL ESTATE MARKET OVERVIEW

it is expected that the oversupply position will reduce over the longer term. In the short to medium term, however, as an over supply position emerges across most cities, stakeholders viz. occupiers, investors, developers and intermediaries need to understand the implications and formulate their strategies accordingly. Overall Impact v Rising interest rates mean higher cost of capital and reduced project net present value assessments. This phenomenon is already visible and leads to lower project and land valuations. Project breakeven periods are also likely to get extended. v In cities where we see a clear oversupply situation emerging, rental values will stabilise for some time before they undergo a correction. In certain cities like the NCR region and Bangalore where the overall demandsupply equation is not significantly skewed, only certain micro-markets will see pressure on rental values. v An oversupply situation would also translate into longer absorption timeframes and in

case of large/multi-phase projects (like SEZs), longer project gestation periods. v In such a scenario, developers are better off divesting their stakes in their projects sooner rather than later as valuations are expected to reduce in the future due to increased cost of capital and higher expected returns. This will also give developers an opportunity to strengthen their balance sheet by reducing high cost borrowings. Similarly, investors should exercise caution and defer investment plans as they are likely to get better valuations in future. v Indian developers have traditionally had scarce access to equity for real estate projects and barring a few large players, all developers operate with the strategy of ‘construct, lease and sell’. The industry average holding period for A-Grade office space assets is less than three years and there is little focus towards creating assets with longevity. However, all foreign developers/investors entering the Indian real estate markets are taking a mid-long terms view towards asset 32

creation. They have deeper pockets as well as access to cheaper capital – all vital factors which enable them to invest towards creating better quality real estate product that will provide them the desired exit valuations in subsequent years. v The above-mentioned drive towards quality (highlighted in the last point) will gradually lead to a complete redefinition of A-Grade office space norms in India. There is a distinct possibility that some of the new supply being created will find no takers since the better quality product is likely to get leased first. v Access to public markets and debt is likely to get more restricted and even larger Indian developers will initiate joint investments with private equity (PE) players. This was not the case so far and PE players were primarily partnering will smaller developers. With the large developer groups joining the race for PE, smaller developers or relatively lesser known entities are certain to be edged out.

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SECTION I RETAIL REAL ESTATE MARKET OVERVIEW

GLOBAL REAL ESTATE OVERVIEW Based on global realty reports by Cushman & Wakefield COMMERCIAL REAL ESTATE OVERVIEW The global office market improved significantly over the course of 2006, as annual rental growth reached 12.2 percent, compared to the much more moderate 4.3 percent recorded in 2005, according to a recent Cushman & Wakefield report. All regions improved their rental growth performance over the year. Africa and The Middle East saw the most buoyant growth, with rents rising by 32 percent. This was, in part, due to the huge increases seen in Abu Dhabi, which posted the highest global rental growth of 200 percent, but all key locations in the region saw good rental growth. Europe showed the smallest regional rental increase once again and the overall European growth rate of 6.5 percent was only a marginal increase on 2005. As in previous years, Central and 34

SECTION I RETAIL REAL ESTATE MARKET OVERVIEW

Eastern Europe outperformed Western Europe, with rental growth of 9.2 percent and 5.7 percent respectively. According to the Cushman & Wakefield report, aside from the very large rental growth seen in Abu Dhabi, the top ten best performing markets were almost all in India, particularly in the suburban locations. Thanks to a boom in financial services and IT as well as stricter building regulations, rents in most key markets in India have skyrocketed. The largest Indian growth rate was posted by the central prime market of Worli, Mumbai, where rents rose by 107 percent over the year, the second highest rate globally. Other global top performers included Calgary, Canada, where the development of the oil industry coupled with limited office supply pushed rents up by 47 percent over 2006. In Europe, Dublin saw the highest rental growth, where prime rents rose by 43 percent in 2006, largely due to supply constraints. London West End continues to be the most expensive location in the world, with a rent of €1,594 per sq.m per year and a total occupancy cost in excess of €2,000 per sq.m per year. Of the top ten locations, only London and Paris retained their positions of first and fourth place respectively in the global ranking. The entry of India (Mumbai) and Ireland (Dublin) into the top ten pushed back Moscow, Milan and New York by two places

compared to the 2005 ranking. The Americas At a regional level, North America recorded 10.9 percent rental growth. This is slightly lower than the global 12.2 percent figure, but compares favourably with Europe at 6.5 percent. South America continued to see the largest gains with an overall increase of 20.7 percent. Buenos Aires was the leading location in rental growth terms, with a 42 percent increase. São Paulo and Rio de Janeiro also improved significantly. In North America, New York Downtown was the best performer, with an annual rental growth of 36 percent. Atlanta (-9 percent) and Silicon Valley (-4 percent) were this year's biggest underperformers. Despite the fact that the US economy entered a period of slower growth in the second half of 2006, the office market recorded the best improvements in vacancy and rents since the end of the 1990s boom. New York Midtown remains the most expensive business location in North America, with a total occupancy cost of just under €670 per sq.m per year. New York Downtown and Washington CBD make up the top three, each with annual total occupancy costs of just under €460 per sq.m per year. Vacancy rates fell in most locations, with some markets including New York Downtown, New York Midtown, Seattle CBD, Washington CBD and Boston CBD seeing vacancy drop below 10 percent.

Source: Cushman & Wakefield

Source: Cushman & Wakefield

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SECTION I RETAIL REAL ESTATE MARKET OVERVIEW

Source: Cushman & Wakefield

between supply and demand. Activity levels are set to remain at present levels in 2007. Mexico saw more stable market conditions. Despite some renewed interest from multi-nationals the market overall remains quiet, with rental values falling marginally over the year.

Source: Cushman & Wakefield

This was a result of strong growth in letting activity over the year; nationally CBD take-up levels were up by a very healthy 10 percent on 2005. Out-of-town locations across the US also proved increasingly popular with occupiers, with falling vacancy and increasing take-up.

Turning to South America, the supply of quality Grade-A space is in very short supply in the key markets. The most expensive locations are Rio de Janeiro CBD and São Paulo CBD, both with total annual costs of around €472 per sq.m per year. A mismatch of high levels of demand for well-located, top-quality office space and low supply characterised most of the key South American markets. The Brazilian and Argentinean markets saw rents rise sharply as supply failed to meet demand. The overall vacancy in Rio de Janeiro fell to 8.1 percent, with the supply of Grade-A space at just 2.1 percent. Meanwhile, overall supply in the Buenos Aires Downtown submarket was critically low, at just one percent. The consistent demand for quality product and the lack of investment in Argentina over recent years presents a great opportunity for developers. A further escalation of rental levels is expected in Argentina over the course of 2007.

High levels of demand were evident in key Canadian markets. Vacancy remained much lower than in the USA; the average vacancy is now at less than 4.5 percent. Take-up levels were abnormally high in Toronto in 2006, while in most other locations markets have reached more of an equilibrium

Europe Overall rental performance saw steady improvement for the third consecutive year. Average performance was moderate in 2006, particularly when compared to the very buoyant investment levels. The occupier market saw some improvement across the board, with rental growth seen in over three-quarters of all European locations; a marked improvement on 2005. Overall European rental growth averaged 6.5 percent. 36

SECTION I RETAIL REAL ESTATE MARKET OVERVIEW

The West End of London once again boasts the most expensive rental level in Europe and the World, at €1,594 per sq.m per year. The gap between first and second positions continued to widen, as rental growth in London was more than three times that of Paris, the second most expensive European location. Central Dublin was the market with the largest rental movement over the year, with growth of 38 percent. Only two countries, Greece and the Czech Republic, experienced a fall in rents, although these were only three percent and five percent respectively. The Czech location of Brno saw the largest rental fall in Europe of 19 percent. Central and Eastern Europe continued to outperform Western Europe, with CEE average regional rental growth at 9.2 percent compared to Western Europe's 5.7 percent. Most markets were trending upwards or stable, with only the Czech Republic seeing an erosion in rental values. Romania is the top regional performer this year in terms of rental growth, with prime rents in Timisoara, Brasov and Constanta growing by a quarter due to a supply/demand imbalance. Latvia and Estonia also saw solid levels of rental growth for similar reasons.

The West End of London once again boasts the most expensive rental level in Europe and the World, at €1,594 per sq.m per year. In fact, the rental growth in London was more than three times that of Paris, the second most expensive European location.

Source: Cushman & Wakefield

On average, European vacancy was trending down due to the lack of development activity and a relative rise in the volume of transactions. Average take-up rose by just over five percent, whilst the overall vacancy rate reached approximately 10.5 percent, the lowest point for four years. Prime space is limited, as occupiers continued their ‘flight to quality’ in 2006, boosting levels of secondary supply. The supply/demand balance is improving in most European markets. In Western Europe, consolidation continues to be a significant factor in market activity, with tenants still costconscious. However, the lack of space is now pushing back incentives and moving prime rents up. Take-up improved in a number of locations, notably most of the Scandinavian markets, Dublin, Central London and Amsterdam. Source: Cushman & Wakefield

In Central and Eastern Europe market trends were more uniformly positive. Moscow remains the tightest market in Europe, with a vacancy of 2.6 percent. As Western European economic performance improves and CEE economic growth is starting to slow, moves towards convergence are expected to be more marked into 2007, as some of the slower markets start to see firmer signs of recovery. There is widely expected to be a fuller recovery across Europe into 2007, with more markets

experiencing higher rental growth. Asia Pacific Across the Asia Pacific region, key office markets continued to run hot in 2006. The region as a whole witnessed the second highest rental growth rates globally and posted an overall 29 percent increase in the year to December, a solid improvement on the regional growth rate of 15.1 percent recorded in 2005, 37

SECTION I RETAIL REAL ESTATE MARKET OVERVIEW

and significantly above the 2006 global average of 12.2 percent. India, Japan, Hong Kong and Singapore were the strongest markets and were responsible for the majority of the overall growth figure. The Indian office sector delivered a particularly strong performance, as the continued surging growth of the economy was reflected in a dramatic increase in rental levels. Rents in central Mumbai (Worli) more than doubled over the course of the year, while in New Delhi prime rents grew by 88 percent. In the main Indian markets the average annual rental growth stood at 45 percent. Tokyo, Hong Kong and Singapore were not far behind and saw rents rise by 40 percent, 39 percent and 38 percent respectively over the reporting period. In comparison, mainland China continued to see lower, albeit strong levels of growth. Tokyo has re-established itself as the most expensive city in the region, with a total occupancy cost of €1,493 per sq.m per year. Hong Kong, the second most expensive location had a total occupancy cost of €1,448 per sq.m per year. Mumbai is the Asia Pacific region's third most expensive location at €985 per sq.m per year. As a whole, the region has a relatively low average vacancy rate of just 7.7 percent. The lowest rates are in Tokyo, at three percent, and Seoul, at 3.4 percent, while most of the Indian cities also recorded vacancies of below five percent. The exceptions were New Delhi and Mumbai, where vacancy rates are 10 percent and nine percent respectively. Kuala Lumpur and Taipei have the highest levels of vacancy in the region at 15 percent and 13.6 percent. The supply and demand picture varied significantly across the region, although international expansion of multinationals continued to drive the market in most locations. In India supply constraints, particularly of Grade-A space were partly alleviated by several multinationals venturing into real estate development, attracted by the strong economy and the unmet demand for quality space. Demand for office space in Singapore is expected to remain strong for the next few years. The tight supply of office space is widely expected to contribute to upward pressure on rents over the course of 2007. As the Japanese economy continues its recovery, vacancy rates are expected to continue falling in the main cities and competition for space looks set to drive rents even higher. The expansion of multinationals is still driving the high levels of activity in mainland China. In 2007 approximately 400,000 sq.m of new Grade-A space will be completed. In Australia, demand is increasing in all the main markets, in line with the improving economy. Africa & The Middle East The Africa and Middle East region saw a buoyant performance once again, with average annual rental growth the highest of all global regions at 32 percent, more than double that of last year. There are various key drivers behind this: most notably Source: Cushman & Wakefield

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improving. In both main UAE markets supply is extremely tight. This is expected to ease in Dubai, as a large programme of buildings works is scheduled for 2007.

the price of oil over the past few years and also the strong levels of foreign investment. Each of the locations within the region recorded rental growth, with no stable or declining markets. However the level of rental growth did vary widely from market to market, ranging from Durban CBD at just two percent to Abu Dhabi where rental growth reached 200 percent over the past year. The market with the highest rental value was Kuwait, where rents were almost 640 per sq.m per year. Kuwait also had the second highest level of rental growth, moving up by 41 percent during 2006.

RETAIL REAL ESTATE OVERVIEW The last few years have seen the longest sustained period of global economic expansion for decades, with each of the last three years recording healthy GDP growth. Moreover, whilst the pace of growth may be set to ease in the year ahead, this broad trend is set to continue – despite the hefty increases in energy prices, rising interest rates and the continuing threat of terrorism and political instability.

Although still the most expensive in terms of rental values, the gap between Kuwait City and the second highest narrowed significantly over the year, with Abu Dhabi just 20 per sq.m less at 619 per sq.m/year. The Israeli locations continued to offer the best value, at a rent of between approximately 170 and 225 per sq.m per year. The highest African rent was in Sandton, at around 150 per sq.m/year, however this market saw one of the lower rental growth levels at just five percent. Johannesburg is the African star performer, with 29 percent rental growth over 2006, the third highest regionally.

Office space at Abu Dhabi

Property market performance has picked up considerably over the past year. Although in some cases vacancy is relatively high, for example, Johannesburg at 15 percent, almost across the board supply is moving down and demand is strong and/or

Source: Cushman & Wakefield

Source: Cushman & Wakefield

39

Dubai City

Mall of Emirates

SECTION I RETAIL REAL ESTATE MARKET OVERVIEW

The Americas

Whilst retailers have had to absorb the effect of recent cost increases, the tone of the retail sector globally is one of cautious optimism, amid continuing growth and expansion into new markets.

Demand for prime retail property across the Americas has been robust. In the United States, whilst consumer spending growth has slowed, the retail property market has proved resilient and still managed to deliver solid rental growth of 10.7 percent. Most of the major city downtown markets have had an excess of demand over supply for prime space which has pushed rents to record levels.

The retail sector remains very active in terms of new store openings, investment in new formats, new development, redevelopment and mergers and acquisitions. Around the world, consumer demand for exciting retail formats and high quality retail facilities has rarely been stronger and this is reflected in the strongest rental growth figures seen for a number of years.

Rents in New York's 5th Avenue again went up to ensure that the city maintained its number one position as the highest rented high street in the world.

Barriers to market entry and investment are coming down -not just within the EU but also in the largest emerging markets of India and China which offer vast potential markets for retailers, developers and investors alike.

In Canada, most high street locations recorded a good rental uplift, with a variety of factors such as strong employment growth and residential development coming into play in the key city markets. High oil prices have also benefited cities such as Alberta in the main oil-producing regions. In Latin America meanwhile, the main story is the continuing Top Ten Locations In The Americas

Mall of America

City

Location

US$/sq.ft/yr

€/sq.m/yr

New York

5th Avenue

1,350

11,364

New York

Madison Avenue

1,100

9,259

New York

East 57th Street

800

6,734

San Francisco

Union Square

375

3,157

Los Angeles

Rodeo Drive (Beverly Hills)

350

2,946

Chicago

North Michigan Avenue

325

2,736

San Francisco

Post Street

300

2,525

Vancouver

Robson Street

187

1,571

Toronto

Bloor Street

187

1,571

São Paulo

Iguatemi Shopping

177

1,493

Source: Cushman & Wakefield

40

SECTION I RETAIL REAL ESTATE MARKET OVERVIEW

rise of hypermarkets and shopping centres, although it is clear that the high street still has an important role to play in the retail hierarchy. New shopping centre development is continuing in Mexico, Argentina, Colombia, Brazil and Chile, with schemes increasingly taking on features seen elsewhere such as entertainment and catering facilities, in order to enhance their appeal to consumers. Europe

Samaritaine Mall, France

In Europe, generally, retail rental growth accelerated above the relatively stable rate seen over the last three to four years. Major brands continue to seek representation on the main high streets, boosting demand for large flagship stores which are in relative short supply. Indeed, supply-demand imbalances have been the key driver of high street growth across most markets, with demand from domestic and, increasingly, international operators for a limited supply of ‘right size, right configuration’ space. In Western Europe, improving consumer and business sentiment is feeding through to prime property by way of renewed activity and rental growth in a number of markets, although the picture is not as positive for secondary locations.

and continuing retail sales growth, in addition to a significant under-provision of modern retail stock in some markets. Indeed, most countries in Central and Eastern Europe have recorded strong increases in retail sales in the last couple of years, some of them breaking into double-digit growth.

Belgium's market remained buoyant throughout the year and rents were up by 19.6 percent – the strongest in Western Europe. Ireland also continued to perform well and recorded growth of 9.5 percent. Spain again outperformed the majority of its neighbours meanwhile, with growth of 7.4 percent, despite slower retail sales growth. France and Italy recorded growth of 3.9 percent and 2.8 percent respectively, whilst Germany at last started to see some signs of recovery after several years of weak growth – albeit that rents rose by just 1.6 percent over the year. In Portugal, the lease reform which came in to effect this year is expected to take its time to work through the market, but should deliver good longer term rental growth on the high street.

Asia Pacific Asia Pacific was the strongest performing region, with the economy proving most resilient. Tourism continues to play a significant role in Hong Kong's retail sector, where rents rose almost five percent on the back of the influx of Chinese and East Asian tourists. The 'Facilitated Individual Travel' policy has continued to have a positive impact on the territory's retail sector since its launch in 2004. Following the opening of Disneyland Hong Kong, the Ngong Ping 360 cable car is expected to increase tourist numbers further and this should boost the retail market in the short term.

The focus continues to extend steadily eastwards to new markets from an occupational, development and investment perspective. This is being fuelled by rising disposable incomes

Despite the slowdown in GDP growth, China’s economy is still growing strongly and continues to attract new overseas

Top Ten Locations In Europe City

Location

Top Ten Locations In Asia Pacific US$/sq.ft/yr

City

€/sq.m/yr

Location

US$/sq.ft/yr

€/sq.m/yr

Paris

Avenue des Champs Elysées

805

6,775

Hong Kong

Causeway Bay

1,134

9,544

London

New Bond Street

673

5,667

Tokyo

Ginza

652

5,486

London

Oxford Street

583

4,904

Tokyo

Omotesando

478

4,023

Dublin

Grafton Street

534

4,496

Sydney

Pitt Street Mall

391

3,294

London

Covent Garden

505

4,248

Seoul

Myeongdong

376

3,169

Paris

Rue du Faubourg St Honoré

464

3,903

Seoul

Kangnam Station

361

3,038

London

Brompton Road

453

3,811

Melbourne

Bourke Street

320

2,695

Paris

Avenue Montaigne

437

3,682

Brisbane

Queen Street Mall

313

2,635

Zurich

Bahnhofstrasse

418

3,517

Singapore

Orchard Road

292

2,459

Paris

Boulevard Haussmann

402

3,387

Tokyo

Shibuya

290

2,430

Source: Cushman & Wakefield

Source: Cushman & Wakefield

41

SECTION I RETAIL REAL ESTATE MARKET OVERVIEW

retailers and investors. Rents have been boosted by steady demand and growth has been seen in prime locations around the country as supply struggles to keep pace. Legislation restricting real estate acquisitions by foreign investors is expected but investor demand remains undiminished given the sheer scale of the opportunities in the market. Japan's retail property revival continues meanwhile, with rents in central Tokyo increasing sharply in the face of limited supply, with a number of foreign operators continuing to struggle to find units. The rent differential between prime and secondary locations in the capital has widened significantly and land prices in central commercial zones have also increased dramatically. The rapid expansion of the retail sector in India has meant that supply has lagged demand, leading to very steep rental growth in a number of major cities. In some locations, planning restrictions on new development are exacerbating the problem, although the number of modern schemes continues to increase in the satellite towns of the largest cities. Ibn Battuta Mall, Dubai

Africa & The Middle East Whilst the short term outlook is more uncertain following the volatile geo-political situation on Israel's borders, the country's retail property market had picked up, with the strongest rental growth seen in Tel Aviv, followed by Jerusalem. Interest from international chains also picked up – providing encouraging news for the retail property market – and good rental growth was recorded in some locations.

Asia, but Central and Eastern Europe and the Middle

In South Africa, the trend away from high street towards shopping centres has continued, with consumers and retailers preferring to opt for a safer shopping environment with a wide range of shops offered by the larger out-of-town shopping centres.

East are also likely to outperform world average growth rates. Although the US economy is not slowing as quickly as was originally feared, a wider negative impact is expected but this should only be felt in the latter half of 2007. Monetary tightening will also act to slow global growth towards the end of the year.

CONCLUSION The outlook for the global economy is positive, although GDP growth is expected to dampen slightly from 3.8 percent to 3.2 percent in 2007. Economic growth will continue to be driven by

The global office occupational market will continue to improve in all regions in 2007. Rents are predicted to rise further and in more locations. Demand, already healthy in most markets, should remain strong with the potential to improve in the majority of locations. Even in markets where take-up is expected to remain stable, demand is generally healthy and the limited supply should continue to erode vacancy rates.

Top Ten Locations In Africa & The Middle East City

Location

US$/sq.ft/yr

€/sq.m/yr

Tel Aviv

Ramat Aviv

111

938

Tel Aviv

Ayalon Shopping Centre

93

782

Johannesburg

Sandton City

80

674

Cape Town

V&A Waterfront

78

657

Durban

The Pavillion

68

576

Pretoria

Menlyn Park

60

503

Jerusalem

King George Street

56

469

Jerusalem

Ben Yehuda

45

375

Tel Aviv

Dizengoff Shopping Centre

39

328

Tel Aviv

Dizengoff Street

33

282

The Global Retail Space The outlook for 2007 looks to be a little more uncertain, with global growth expected to slow, most notably in response to the end of the period of relatively low interest rates which has supported consumer sentiment globally over recent years. Rising interest rates in the US appear to be dampening the housing market there and the strength of continued growth in consumer spending is increasingly being questioned. The knockon effect on countries which are dependent on US demand such as Latin America and the Emerging Asian economies could be significant. However, for the Asia Pacific region as a whole

Source: Cushman & Wakefield

42

SECTION I RETAIL REAL ESTATE MARKET OVERVIEW

the growth in intra-regional trade should help to mitigate such effects. Growth in China, meanwhile, is expected to slow from its recent double-digit rate, as the government tries to boost the importance of private consumption in the economy against its current overdependence on investment. Having achieved only modest growth in recent years, prospects for the European economy have improved meanwhile, with even the lacklustre consumer sector beginning to show signs of a more positive revival. Of the three main Euro zone economies, France is likely to be the better performer, while Germany may see its recent impressive performance blunted by the implementation of 2007's VAT hikes. As far as retail property is concerned, there is still reason to be cautiously optimistic. Clearly, there will be challenges for the global retail sector as there have been in recent years, but retailing has shown itself to be resilient, innovative and increasingly cross-border. Whilst a range of threats will continue to persist – so too will the opportunities. These include the opening up of large and increasingly wealthy consumer markets such as Brazil, Russia, Turkey, India and China where demand for consumer goods is growing rapidly and the need for top class retailers and high quality retail development remains strong. Growth in the more mature markets may be more limited, but there are nevertheless significant opportunities to refurbish, redevelop and experiment with new formats, as consumers become ever more selective and demanding. Cross border opportunities look likely to remain high on the agenda at the same time, the trend towards globalization and consolidation via corporate activity, will remain strong as we see the steady emergence of stronger global retail brands.

BRIC COUNTRY SUMMARIES Brazil The Brazilian office market had another vibrant year and saw healthy rental growth in 2006. Supply in Rio de Janeiro

Westside, Mumbai

Colaba Causeway, Mumbai

is very tight and, as a result of the lack of quality Grade-A space many companies were forced to look for alternatives to the CBD. Barra da Tijuca, a new business district some 25 km outside the city centre, is becoming increasingly popular. Availability is slightly better in São Paulo, although increased letting activity caused overall vacancy to decline. Aided by a more stable economic environment and the increasing availability of consumer credit, the retail property market is enjoying a period of strong growth. Robust occupier demand has driven up rents in the key locations in many cities. Shopping centres are increasingly dominant, often at the expense of high street locations. Russia Russia has once again seen a positive performance in 2006. Supply levels have grown considerably, but demand has grown even faster. Vacancy in Moscow is now at just 2.7 percent, the lowest in Europe. Meanwhile, take-up has again reached an historic high, at approximately 1.2 million sq.m. Rents have risen both in and out-of-town as a consequence over the year. Demand should remain high in 2007, with increasing interest in the decentralised areas, where more modern space is available. The rapid expansion of the retail sector 43

has caused a degree of volatility in rents. Some Moscow high streets have experienced good growth, whilst others have been more adversely affected by increased competition from new shopping centres. Longer term prospects for the market nevertheless remain positive. India Strong rental growth continued unabated in 2006 across major cities in India, as the IT and financial services sector boosted demand. A noticeable trend was increased interest in peripheral areas. This was helped by government spending on infrastructure, coupled with a lack of space and relatively high rents in central markets. Supply levels improved due to several multinationals venturing into office development, attracted by the surging economy and the unmet demand for quality space. The retail sector is booming, aided in part by a more liberal policy on foreign investment. Whilst there are unprecedented levels of new development, good quality space is limited and rental levels have increased across the market. JVs between domestic and international retailers are increasingly common. China The office markets in Shanghai and

SECTION I RETAIL REAL ESTATE MARKET OVERVIEW

44

SECTION I RETAIL REAL ESTATE MARKET OVERVIEW

Beijing delivered another good performance in 2006. Take-up levels remained high, driven by both domestic and multinational companies. Both cities have substantial development pipelines; this is particularly the case in Beijing, where the large amount of new supply pushed vacancy in the CBD to over 12 percent, compared to Shanghai's four percent. Despite the new space entering the market, both Beijing and Shanghai saw double-digit rental growth over the year. The retail sector has continued to expand rapidly, driven by the growing influx of international operators as well as new development. The impact on rents has been mixed, however, with rents in Beijing under upward pressure whilst rents in Shanghai have softened marginally due to increased supply.

Global Office Rents ASIA PACIFIC Country

City

Location

Local measure

Rent Local Currency

Annual Rental Growth %

NET INTERNAL AREA Rent US$/s. Rent Euro/ sq.m/yr ft/yr

Australia

Sydney

CBD

A$ per sq.m per year

650.0

8.3%

47.5

387.5

Australia

Melbourne

CBD

A$ per sq.m per year

455.0

2.2%

33.2

271.3

465.0

0.0%

34.0

277.2

43.1

10.3%

48.1

392.4

Australia

Brisbane

Centre

A$ per sq.m per year

China

Beijing

CBD

US$ per sq.m per month

China

Shanghai

CBD

US$ per sq.m per month

46.5

13.4%

51.8

423.1

China

Hong Kong

CBD

HK$ per sq.ft per month

101.1

38.8%

156.0

1270.7

India

Mumbai

CBD

INR per sq.ft per month

350.0

57.7%

93.9

766.3

India

Mumbai

Central - Worli

INR per sq.ft per month

448.0

107.4%

120.2

980.8

India

Mumbai

Suburban - Bandra Kurla Complex

INR per sq.ft per month

416.0

92.6%

111.6

910.8

India

Mumbai

Suburban - Andheri (E)

INR per sq.ft per month

60.0

32.2%

42.9

350.3

India

New Delhi

CBD

INR per sq.ft per month

333.0

88.1%

89.3

729.1

India

New Delhi

Suburban - Gurgaon

INR per sq.ft per month

115.0

74.2%

30.8

251.8

India

Bangalore

CBD

INR per sq.ft per month

98.0

36.1%

26.3

214.6

India

Bangalore

Suburban - ORR Sarjapur Marathalli

INR per sq.ft per month

60.0

17.6%

16.1

131.4

India

Chennai

CBD

INR per sq.ft per month

95.0

46.2%

25.5

208.0

India

Chennai

Suburban - Guindy

INR per sq.ft per month

81.0

47.3%

21.7

177.3

India

Hyderabad

CBD

INR per sq.ft per month

60.0

33.3%

16.1

131.4

India

Hyderabad

Suburban - Madhapur

INR per sq.ft per month

60.0

1.7%

16.1

131.4

India

Pune

CBD

INR per sq.ft per month

95.0

46.2%

25.5

208.0

India

Pune

Suburban - Hadapsar

INR per sq.ft per month

50.0

31.6%

13.4

109.5

India

Kolkata

CBD

INR per sq.ft per month

100.0

19.0%

26.8

218.9

India

Kolkata

Sector 5 - Saltlake

INR per sq.ft per month

70.0

22.8%

18.8

153.3

Indonesia

Jakarta

CBD

Rupiah per sq.m per month

78831.0

3.0%

9.6

78.6

Japan

Tokyo

CBD

Yen per tsubo per month

63000.0

40.0%

182.9

1493.0

South Korea

Seoul

CBD

KRW per pyung per month

153769.0

0.9%

56.5

461.3

South Korea

Seoul

Gangnam

KRW per pyung per month

154702.0

2.4%

56.8

464.0

125276.0

1.3%

46.0

375.8

8.0

0.0%

26.6

217.4

South Korea

Seoul

Yeouido

KRW per pyung per month

Malaysia

Kuala Lumpur

CBD

RM per sq.ft per month

New Zealand

Auckland

CBD

NZ$ per sq.m per year

395.0

5.3%

25.0

204.0

Singapore

Singapore

CBD

S$ per sq.ft per month

8.1

38.0%

63.3

516.8

Taiwan

Taipei

CBD

NT$ per ping per month

3289.0

3.5%

34.2

279.2

Thailand

Bangkok

CBD

Baht per sq.m per month

700.0

7.7%

21.7

177.2

Source: Cushman & Wakefield

45

SECTION I RETAIL REAL ESTATE MARKET OVERVIEW

Global Retail Rents ASIA PACIFIC Country Australia

City Adelaide

Location

Local measure

Rundle Mall

Australian $/sq.m/year

Rent Annual June 2006 Growth 2,000

11.1%

Rent (pa) Inflation 3.0%

US$/sq.ft Euro/sq.m 142

1,198

Australia

Brisbane

Queen Street Mall

Australian $/sq.m/year

4,400

2.3%

3.0%

313

2,635

Australia

Brisbane

Indooroopilly

Australian $/sq.m/year

2,200

4.8%

3.0%

157

1,318

Australia

Melbourne

Bourke Street

Australian $/sq.m/year

4,500

0.0%

3.0%

320

2,695

Australia

Perth

CBD

Australian $/sq.m/year

3,000

20.0%

3.0%

213

1,797

Australia

Sydney

Oxford Street

Australian $/sq.m/year

1,900

-5.0%

3.0%

135

1,138

Australia

Sydney

Pitt Street Mall

Australian $/sq.m/year

5,500

10.0%

3.0%

391

3,294

China

Beijing

Jianguomen

US$/sq.m/month

160

14.3%

1.0%

178

1,501

China

Beijing

Wanfujing

US$/sq.m/month

190

11.8%

1.0%

212

1,783

China

Shanghai

Huaihai Road (Middle)

US$/sq.m/month

145

1.4%

1.0%

162

1,361

China

Shanghai

Nanjing Road (East)

US$/sq.m/month

183

1.4%

1.0%

203

1,713

Hong

Kong Hong Kong

Causeway Bay

HK $/sq.ft/month

735

4.9%

2.1%

1,134

9,544

India

Mumbai

Linking Road,Western Suburban

Rs/sq.ft/month

450

57.9%

6.5%

116

976

India

Mumbai

Kemps Corner, South Mumbai

Rs/sq.ft/month

275

27.9%

6.5%

71

596

India

Mumbai

Fort/Fountain, South Mumbai

Rs/sq.ft/month

145

16.0%

6.5%

37

314

India

Mumbai

Colaba Causeway

Rs/sq.ft/month

225

36.4%

6.5%

58

488

India

New Delhi

Ansal Plaza

Rs/sq.ft/month

240

20.0%

6.5%

62

520

India

New Delhi

Connaught Place

Rs/sq.ft/month

400

100.0%

6.5%

103

867

India

New Delhi

Karol Bagh

Rs/sq.ft/month

320

88.2%

6.5%

82

694

India

New Delhi

South Extension

Rs/sq.ft/month

550

111.5%

6.5%

142

1,193

India

New Delhi

Khan Market

Rs/sq.ft/month

700

75.0%

6.5%

180

1,518

525

110.0%

6.5%

135

1,139

225,000

32.4%

0.6%

652

5,486

India

New Delhi

Greater Kailash I

Rs/sq.ft/month

Japan

Tokyo

Ginza

Yen/Tsubo/month

Japan

Tokyo

Shibuya

Yen/Tsubo/month

100,000

0.0%

0.6%

290

2,438

Japan

Tokyo

Omotesando

Yen/Tsubo/month

165,000

26.9%

.6%

478

4,023

South Korea

Seoul

Myeongdong

Won/Pyung/year

13,287,466

3.4%

2.6%

376

3,169

South Korea

Seoul

Kangnam Station

Won/Pyung/year

12,738,368

3.4%

2.6%

361

3,038

South Korea

Seoul

Apkujung

Won/Pyung/year

5,980,701

5.8%

2.6%

169

1,426

Malaysia

Kuala Lumpur

Bukit Bintang

RM/sq.ft/month

40

0.0%

3.9%

138

1,159

Malaysia

Kuala Lumpur

Suria KLCC

RM/sq.ft/month

50

0.0%

3.9%

172

1,449

Malaysia

Kuala Lumpur

Mid Valley Megamall

RM/sq.ft/month

New Zealand

Auckland

Queen Street

NZ$/sq.m/year

30

0.0%

3.9%

103

869

2,100

5.0%

4.0%

123

1,039

New Zealand

Wellington

Lambton Quay

NZ$/sq.m/year

2,300

4.5%

4.0%

135

1,138

New Zealand

Christchurch

Cashel Mall

NZ$/sq.m/year

1,000

0.0%

4.0%

59

495

Philippines

Manila

Makati CBD

Php/sq.m/month

1,185

12.9%

0.7%

26

221

Philippines

Manila

Ortigas CBD

Php/sq.m/month

930

3.3%

0.7%

21

173

Singapore

Singapore

Orchard Road

S$/sq.ft/month

39

13.2%

1.4%

292

2,459

Thailand

Bangkok

City Centre

Baht/sq.m/month

2,300

4.5%

5.9%

68

575

Taiwan

Taipei

ZhongXiao E. Road

NT$/ping/month

12,000

7.9%

0.3%

123

1,037

Korea: 1 Pyung = 3.306 sq.m/Japan: 1 Tsubo = 35.6 sq.ft/Taiwan: 1 ping = 3.306 sq.m

Source: Cushman & Wakefield

46

SECTION II

CONSUMPTION TRENDS FOR SHOPPING CENTRE DEVELOPMENT

Consumers at the Pantaloons, Gariahaat, Kolkata

SECTION II CONSUMPTION TRENDS FOR SHOPPING CENTRE DEVELOPMENT

CONSUMPTION

TRENDS IN INDIA

C

onsumption is bound to be high in a country of 1.121 billion but it is really the quality of consumption that will actually portray the potential for retail and real estate growth. The quality of consumption, in turn, is a direct function of the overall growth of the economy, and factors ensuring sustainability of the growth momentum. There is undoubtedly an all round buoyancy in the Indian economy with GDP growth coming closer to the double-digit figure, and a booming services sector. Rising incomes have fueled the growth of a new class of consumers, mostly young, whose spendings are quite independent from the traditional family ways. This change in lifestyles is a result of the rising disposable incomes of this young consumer base. 50

SECTION II CONSUMPTION TRENDS FOR SHOPPING CENTRE DEVELOPMENT

The last couple of years have seen an annual increase of 15-20 percent in salaries of the employed, which has in effect reduced the chasm between the middle class and the affluent. It is estimated that the great Indian middle class will comprise 32-35 percent of the population by 2010. That the growth in consumption is not limited just to the metros and large tier-II cities is evident from the fact that more than one-third of the mall developments and a significant number of the upcoming hypermarkets and large department stores are happening in the tier-III cities. Over the last couple of years, Retail and Real Estate are among the fastest growing sectors in the Indian economy. Global industry analysts have time and again confirmed the country's potential as one of the most attractive emerging retail markets of the world. The increased consumer demand, improved sourcing options, liberalisation of investment policies, and larger availability of real estate, coupled with higher disposable incomes and changing preferences of consumers are together creating the foundation for significant growth and revolution in the retail and retail real estate sectors.

PRIVATE CONSUMPTION EXPENDITURE SHARE: ALL INDIA Private Final Consumption Expenditure: Rs. 2,340,000 Crore (2006-07)

Clothing 4% Footwear 0.7% Consumer Durables 8.3%

Food & Beverages 48.6%

Personal Care Products & Services 2.7% Medical & Health Care 5.6%

Education 3.3% Leisure & Entertainment 1.0%

Miscellaneous Personal Goods & Services n.e.c. 2.5%

Transport 4.5% Gross Rent, Fuel & Power 18.8%

As per the 2005-06 private final consumption break-up, the highest head of household expenditure is on Food & Beverages: Rs.870,170 crore, a 8.4 percent growth rate over 2004-05, when household F&B expenditures stood at Rs.802,753 crore. The fastest growing head of domestic household expenditures was the communication segment (28.4 percent), with a spend of Rs.49,546 crore over previous year’s spend of Rs.38,601 crore. The other fast growing household expenditure heads are leisure and entertainment (18.4 percent growth over 2004-05), followed by spends made on consumer durables (16.3 percent growth rate) and clothing (16.1 percent growth).

Bakery counter at a Spencer's outlet from the RPG Group

India possesses an enormously vast pool of highly skilled professionals in the knowledge and technical domains, nearly two lakh engineers graduating every year; and yet experts believe that this number may fall short of the ensuing demand in the coming years. Urban jobs are reported to have increased by nearly 23 percent in 2006. The government of India has only recently taken cognisance of this growing demand of skilled manpower by announcing a doubling of the country’s premier technology and management institutes.

IMAGES F&R Research estimates reveal that the Private Final Consumption Expenditure in India (domestic market) for year 2006-07 at current prices stand at Rs.2,340,000 crore. These estimates put the growth rate at 11.8 percent over the previous year in the backdrop of inflationary pressures prevalent during the period. Private consumption expenditure in 2004-05 was to the tune of Rs.1,890,619 crore which increased by 10.7 percent to Rs.2,093,787 crore in 2005-06. 51

SECTION II CONSUMPTION TRENDS FOR SHOPPING CENTRE DEVELOPMENT

Growth In Private Final Consumption Expenditure In India (Domestic Market) At Current Prices Current price Rs.Cr Heads of Expenditure 2003-04

2004-05

FOOD & BEVERAGES

760,434

802,753

Growth Rate 5.6%

2005-06 870,170

Growth Rate 8.4%

Cereals, bread, pulses, sugar/gur, spices, oils/oilseeds, etc

312,879

322,730

3.1%

338,427

4.9%

Fruits & Vegetables

149,721

158,190

5.7%

168,741

6.7%

Milk & milk products

114,502

120,598

5.3%

132,958

10.2%

Meat, egg & fish

71,397

77,551

8.6%

83,416

7.6%

Tobacco, pan & intoxicants

36,507

32,082

-12.1%

37,022

15.4%

Coffee, Tea & cocoa

14,558

19,472

33.8%

22,392

15.0%

Beverages

28,501

36,084

26.6%

45,627

26.4%

Catering (Hotels, resturants, etc)

32,369

36,045

11.4%

40,810

13.2%

CLOTHING

79,372

88,548

11.6%

102,764

16.1%

FOOTWEAR

10,569

11,870

12.3%

11,877

0.1%

CONSUMER DURABLES

58,498

66,199

13.2%

76,985

16.3%

Home Appliances / Equipment & Services

37,176

43,744

17.7%

51,582

17.9%

Household Furniture, furnishings, utensils & services

21,322

22,455

5.3%

25,412

13.2%

COMMUNICATION

31,722

38,601

21.7%

49,546

28.4%

PERSONAL CARE PRODUCTS & SERVICES MEDICAL & HEALTH CARE

50,071

53,924

7.7%

58,613

8.7%

103,209

119,972

16.2%

138,053

15.1%

EDUCATION

38,806

43,810

12.9%

49,919

13.9%

LEISURE & ENTERTAINMENT

29,360

37,669

28.3%

44,602

18.4% 10.3%

TRANSPORT

253,510

292,814

15.5%

323,029

Personal Transport, accessories, operation & maintenance

102,364

119,514

16.8%

126,457

5.8%

Public Transport services

151,146

173,299

14.7%

196,569

13.4%

GROSS RENT, FUEL & POWER

186,683

197,907

6.0%

209,833

6.0%

MICELLENEOUS PERSONAL GOODS & SERVICES n.e.c.

120,054

136,552

13.7%

157,467

15.3%

1,722,288

1,890,619

9.8%

2,093,787

10.7%

PRIVATE FINAL CONSUMPTION (DOMESTIC)

IMAGES F&R Research estimates based on CSO National Accounts Statistics 2007, Ministry of Statistics & Programme Implimentation, Govt of India

The growth rate of domestic household spends on leisure and entertainment, however, came down from 2004-05, when the segment had clocked in the highest growth rate of 28.3 percent over spends made in 2003-04. Another significant expenditure segment is healthcare and medical expenses (Rs.138,053 crore, indicating a 15.1 percent growth over last year’s household medical expenses). Recent announcement by Reliance industry to set up over a thousand heath care facilities across the country is an aim towards providing quality services in this segment. This report analyses shopping centre developments in India across four broad geographic zones. In view of that, a general overview of the level of private consumption expenditure across these zones is worth mention. In 2006 the population of India is estimated at 1,121 million and the population is highest in the North zone (342 million) followed by the East (311 million), South (238 million) and the West zone (230 million) in the order. In line with the population figures,

Private Consumption expenditure is highest in the North zone (more than 700,000 crore) and lowest in the West. A realistic indication of consumption expenditure obtaining from specific zones, states or cities is obtained from the average annual per capita expenditure. The national average for Rural areas is Rs.17,287 and for the urban centres it is Rs.Rs.29,652. Zone-wise, average consumption is highest for rural areas in the South (Rs.21,621) followed by the North (Rs.17,064), East (Rs.16,184) and is lowest in the West (Rs.14,959). For the urban centres, average per capita private consumption expenditure is highest in the West zone (Rs.30,734) with the South zone slightly behind at Rs.30,238 followed by the North (Rs.29,398) and East (Rs.27,599) in the order.

THE INDIAN RETAIL MARKET As per Images F&R Research estimates, the Indian Retail market is estimated at Rs.10,98,000 crore (at constant prices) an is 52

SECTION II CONSUMPTION TRENDS FOR SHOPPING CENTRE DEVELOPMENT

Private Consumption Expenditure Across Major Zones Population-2006 (million) Rural

Consumption Expenditure 2006-07 (INR million) Rural Urban Total

Av per capita Consumption Exp (INR/year) Rural Urban

Urban

Total

NORTH ZONE (Delhi, Rajasthan, Haryana, Chandigarh, Punjab, HP, J&K, Uttranchal, UP)

248

94

342

4,236,272

2,766,750

7,003,022

17,064

29,398

WEST ZONE (Maharashtra, Gujarat, Goa, MP)

142

88

230

2,124,790

2,698,023

4,822,814

14,959

30,734

SOUTH ZONE (Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, Pondicherry)

153

85

238

3,313,561

2,558,019

5,871,579

21,621

30,238

EAST ZONE (Chhattisgarh, Jharkhand, Bihar, Orissa, West Bengal, NE States)

252

59

311

4,079,240

1,623,345

5,702,585

16,184

27,599

ALL INDIA

796

325

1,121

13,753,864

9,646,136

23,400,000

17,287

29,652

F&R Research estimates based on NSS Report No. 509: Household Consumption of Various Goods and Services in India, 2004-05, Volume I & II and CSO National Accounts Statistics 2007, MoS&PI, Government of India

The high paced growth of organised retail will certainly weaken traditional retailing, but not necessarily in absolute terms. The share of organised retailing will increase primarily due to an increase in the overall retail market. Within organised retailing, the presence of malls will provide a cushion for the traditional retailers to register a foothold in the modern retail environment. With more and more malls opening up, there will also be an urgency to differentiate with regards to the tenant/retailer mix. Larger organised players will eventually opt for standalone outlets for their diversification and the traditional high street retailers are most likely to fill the space within the malls. This may bring about a win-win situation for all concerned in this rapidly changing retail landscape.

The India Retail Report 2007 pegs the current Indian retail market size (at 2006 current prices) at Rs.12,00,000 crore, with the size of the organised pie being Rs. 55,000 crore. About 4.6 percent of the total Indian retail market stood organised in 2006. Food and grocery is the largest retail segment (Rs.7,43,900 crore) whereas Fashion is the largest organised retail segment. Comprising clothing, textiles and fashion accessories, the organised fashion market in India is estimated at Rs.21,400 crore.

Colaba Causeway, Mumbai

projected to grow to Rs.1,308,000 crore by 2010. The organised retail market, on the other hand, is estimated to reach Rs.66,500 crore in 2007, and as per the prevailing trends, it is likely to surpass Rs.200,000 crore by year 2010.

PROJECTED GROWTH IN INDIAN RETAIL

THE INDIAN RETAIL PIE 2006 (Market Size Rs. 1,200,000 Crore at current prices)

0

1,000,000 800,000

14 0, 00

800,000 800,000 800,000

0

0 2004

2005

2006

2007

2008

2009

Food & Grocery 63%

Indian Retail (Value Rs.Cr.)

1, 30 8, 00 0 0

20 3, 00

,5 00 96

00 66 ,5

,5 00 47

35 ,6 00

100,000

1,400,000 1,200,000

150,000

50,000

1, 23 4, 00 0

1, 16 4, 00 0

1, 09 8, 00 0

98 0, 50 0

93 0, 00 0

200,000

28 ,0 00

Organised Retail (Value Rs.Cr.)

250,000

1, 03 6, 00 0

(Value Rs.Cr. at 2003-04 Constant Prices)

Mobilephones 2%

Books, Music, Gifts 1% Entertainment 3%

Consumer Electronics 4%

2010

Pharmaceuticals 4% Organised Retail

Catering (F&B) 5%

Furnishings & Furniture 3%

Health & Beauty 0.5%

Indian Retail

Footwear 1% Watches 0%

53

Clothing, Fashion 9% Jewellery 5%

SECTION II CONSUMPTION TRENDS FOR SHOPPING CENTRE DEVELOPMENT

CONSUMER DEMOGRAPHICS AND CHANGING CONSUMPTION DEMANDS INNOVATION IN UPCOMING MALL PROJECTS BY ARVIND SINGHAL > Chairman, Technopak

I

ndia is at an exciting tipping point in its socio economic progress that makes it the cynosure of local and global investors. A plethora of reasons drives this intense speculation over investing in the ‘India Boom’ – a rapidly growing economy propelled by a de-ageing demographic profile and a confidence rarely seen in the so-called developing nations. These tectonic shifts in demography and economic potential are rapidly moulding consumer expectations, spending and aspirations. With a healthy GDP which currently stands at Rs.38,23,415 crore (US$930 billion: that is projected to have a sustainable real GDP growth rate of eight percent till 2020), India is the world’s fourth largest economy on GDP (in PPP terms) and is expected to rank third by 2010 – just behind the US and China. According to internal Technopak estimates, the Indian retail market – one of India's fastest growing industries – is expected to grow close to 12 percent p.a. in the coming decade to almost double its size in next five years from Rs.13,56,949 crore (US$330 billion) to Rs.23,80,309 crore (US$579 billion) by 2011.

54

SECTION II CONSUMPTION TRENDS FOR SHOPPING CENTRE DEVELOPMENT

The prognoses for retail in India is heartening given some fairly well-documented changes in the demographics of Emerging India – a large, young working population with a median age of 24 years, increasing number of nuclear families in urban areas (45 percent of urban families are nuclear!), a sizeable workingwomen population and emerging opportunities in the services sector are going to be the key growth drivers of the organised retail sector. When you add to the above the fact that India is also adding middle class homes faster than you can blink (between 1995 and 2005, middle class homes grew from 45 lakh to 187 lakh and by 2010 this number may touch close to 330 lakh), the country seems ripe for a consumer-led retail revolution. So, it is no surprise that India has topped the year’s annual Global Retail Development Index (GRDI) to win as the most attractive market for retail investment.

HIGH PRIVATE CONSUMPTION AND ITS IMPACT ON INDIA RETAIL The high private consumption is one of the major factors for the growing retail industry. Over 62 percent of the private consumption share is towards the retail sector, of which 55 percent is the contribution from the rural areas, indicating the increasing significance of retail presence in rural areas. The Retail Market: Rural/Urban Split Almost half of retail market in 2006 is in rural India; however the share of urban market is increasing by almost five percent every eight to 10 years; 53 percent of the urban population contributes to 27 percent of the total retail market which amounts to Rs.3,28,767 crore (US$80 billion), implying reaching out to the top 141 cities to address this opportunity.

the rural population and 60 percent of the rural wealth implying reaching out to almost 100,000+ villages to address even 50 percent of this rural opportunity.

Retail Market: The Rural Split Rural India consists of 7,200 lakh consumers across 6,27,000 villages; 17 percent of these villages account for 50 percent of

Food, Beverages and Tobacco account for 65 percent of the

% Split Urban

GDP US$ 804 Bn

% Split

45%

Rural

55%

*Source: National Accounts statistics; Monthly per capita expenditure & Technopak Analysis

Private Consumption US $482 Bn (60%)

Public spending & Gross Capital Formation 40%

Retail Market: The Urban Split City Type

Retail US $300 Bn (62%)

Non-Retail US $18 2 Bn (38%)

% of Population

% of Urban % of Total Market Market (Cumulative) (Cumulative) 20% 9%

Cumulative Market US $ Billion 27

Top 4

16%

Top 9

24%

30%

13%

40

Urban US $135 Bn (45%)

Top 62

43%

50%

22%

67

Rural US $165 Bn (55%)

Top 141

53%

60%

27%

80

Top 338

63%

70%

31%

94

Source: Central Statistical Organization (CS0) and Technopak Analysis

Top 530

69%

75%

33%

100

Top 784

74%

78%

35%

104

* Source: RK Swamy BBDO

55

SECTION II CONSUMPTION TRENDS FOR SHOPPING CENTRE DEVELOPMENT

Retail Market: The Share Of Categories

Food, Beverages and Tobacco

Market Size $billion 2006

% Share 2006

Growth Rate Market Size b/w 2010-05 $billion 2010

% Share 2010

Growth Rate Market Size US b/w 2015-10 $billion 2015

% Share 2015

195

65%

7.0%

256

60%

6%

342

Personal Care

15

5%

11%

23

5%

9%

35

54% 5%

Apparel

21

7%

11%

33

8%

9%

50

8%

Footwear

5

2%

11%

7

2%

9%

11

2%

Furnishings

4

1%

15%

7

2%

12%

12

2%

IT & Consumer Durables Furniture Jewellery & Watches Medical Care & Health Services Recreation Others

14

5%

15%

24

6%

12%

43

7%

9

3%

15%

16

4%

12%

28

4%

15

5%

12%

24

6%

9%

37

6%

8

3%

12%

12

3%

12%

21

3%

2

0.6%

17%

3

1%

15%

7

1%

12

4%

18%

23

5%

18%

53

8%

300

100%

9%

427

100%

8.4%

637

100%

Above are indicative calculations only Share is % share of Retail market. The share would be about 60% of the above numbers in case they are to be seen as % PFCE. For example Food, Beverages and Tobacco would be about 40% of the PFCE

retail market, but its share is expected to decrease in the next 10 years as other categories like apparel, IT and consumer durables are catching up fast. Shares shown above are percentage shares of the retail market. The share would be about 60 percent of the above numbers in case they are to be seen as percentage PFCE. For example Food, Beverages and Tobacco would be about 40 percent of the PFCE. The Key Trends That Will Impact The Retail Sector The three key trends have certain issues of concern associated with them, for example the extent and likely impact of urbanisation. Some of the issues are listed as below: Urbanisation v How rapid is it going to be? v What is the likely impact on consumption and its growth/trends? Changing Family Structures v What is the future family structure?

Hence it is important for all to track demographic and socioeconomic changes, evolving consumer needs and desires, and behavioural transformation as it takes place including buying behaviour. It is also important to have multi-channel, pan-India strategy for those who are aspiring to hold leadership position in the industry in the years to come. Retail Sector Developments The retail sector is transforming rapidly and within next five years the top seven retailers are expected to invest around Rs.65,743 crore (USD16 billion). Investments in the range of Rs.90,380 crore+ (US$22 billion) are expected in the next five years in retail and its supply chain alone. The size of modern retail is likely to touch Rs.2,45,000-3,00,000 crore (US$60-75 billion) by 2011-12; implying about 15-18 percent share of modern retail. At least 25 lakh additional direct jobs are likely to be created in the next five years. Hyper-competition is expected to set in by 2008-9 as the footprint of the top-six players starts significant overlapping in top 20-30 towns. This indicates a significant impact on other retailers and branded good players – creating new opportunities and threats.

v How is it going to impact the spending power and hence consumption?

In short, India is attempting to do in 10 years what took 25-30 years in other major markets in the world and shall bypass many stages of ‘evolution’ of modern retail. India is likely to see emergence of several ‘innovative’ India specific retail business models and retail formats in the coming years.

Demographic Changes

India Consumers: The Largest Beneficiaries

v What would be the demographic structure of India in next five, ten, 15 years?

There would be multiple benefits for the middle-class consumers (and lower income consumers). These can be summed up as reduction of prices in typical monthly 'basic needs' shopping bill by at least 10 percent within next 24-30 months leading to generation of an equivalent amount of surplus disposable income. It also implies improvement in quality of fresh/perishable products

v How is it going to impact shopping behaviour?

v How is it going to impact shopping behaviour? v How is it going to impact the spending power and hence consumption?

56

SECTION II CONSUMPTION TRENDS FOR SHOPPING CENTRE DEVELOPMENT

Rapid Transformation Anticipated Retailer

of distribution of mall space.

Estimated Investment in US$ Billion

No. of Years

R1

6.0+

Within next 5years

R2

2.0+

Within next 5years

R3

2.0+

Within next 5years

R4

2.0+

Within next 5years

R5

2.0+

Within next 5years

R6

1.0+

Within next 5years

R7

1.0+

Within next 5years

Next 30-40 Retailers

6.0+

Within next 5years

Total

22+

and improved assortment, and reliability of availability. Tremendous Opportunities for Real Estate Additional consumption of almost Rs.5,00,000 crore (About US$127 billion) will require about 6,000-7,000 lakh sq.ft of additional retail space by 2011. Current projections on constructions are about 2,000 lakh sq.ft (or less), leaving a gap of almost 4,000-5,000 lakh sq.ft. Investment of about US$1015 billion is needed to make up for this demand-supply gap, and an additional investment of US$8-10 billion is needed in retail fit-outs and related equipment. However, this space is needed across more than 1,000 towns and in major ‘rural hubs’ rather than clustered around top 4050 cities only. The developments have to be planned keeping targeted consumers and the targeted ‘retailers and other service providers’ in mind rather than first build based on availability of land and hiring an architect, and then find who could use the space. Major hypermarket format retail players will probably work on the basis of taking up space in upcoming malls as well as building own ‘big boxes’.

And banish the thought that the malls are a metro phenomenon – Kochi, Visakhapatnam, Surat, Patna, Guwahati are some of the cities where malls are coming up. Tier-II cities like Kochi and Mysore are expected to see at least a million square feet of mall area added by 2010. Malls make for a fascinating study on the subject of cultural familiarisation and acclimatisation. What started out as a generalised, western-mimicked formula for success is today, extremely customised and localised for the Great Indian Middle Class. A mall used to be the bastion of the privileged class once upon a time; in the span of 5 years it is the social networking site for the vast middle classes. A trip to the mall is not just about shopping; it is about a basic sociological need – reconnecting. It is about reconnecting with the fast-disappearing concept of ‘family time’ or with friends or even reconnecting with oneself. A mall today is like a traditional Indian thali – it has something for everybody in the family, making it the perfect destination for a family on a weekend or indeed, even on a weekday evening. The air-conditioned comfort, music, gaming arcades, entertainment areas, food courts and all-under-one-roof merchandise ensure that every member of the shopping group is indulged while the milling crowds obviate the need to converse. The malls embrace diversity and it that lies their biggest strength. However, it is precisely this diversity that makes the task of

IMPLICATIONS FOR THE CURRENT RETAIL REAL ESTATE SCENARIO Despite this bright forecast for the future, there is a deep, lurking sense of foreboding when profit making in the retail space is discussed in close circles. The huge initial investments required in this field render break-even prospects bleak. It is a constant battle to consistently bring huge numbers of footfalls into a retail outlet and an even greater challenge to maintain a respectable average transaction value. Wooing the consumer in the face of more distractions and competition is becoming a priority for success. On the Gurgaon 'Mall Mile'

While the number of new formats launched in the country’s retail landscape has been mind-boggling, the most visible face of this surge in modern retail has been the spectacular rise in the number of shopping malls across the country. According to internal Technopak estimates, the number of malls in the country is expected to go up from 158 in 2005 to 600 in 2010. Delhi is expected to lead among all the metros in terms 57

SECTION II CONSUMPTION TRENDS FOR SHOPPING CENTRE DEVELOPMENT

Every significant change in the demography of the country has grave implications for service and product management in the malls. I have outlined only a few of the most critical challenges for mall developers. Their response to these challenges will determine their ability to successfully cash in on the ‘India Boom’. When one throws together an assortment of demographic nuggets, the cluster of necessities for a mall to accept is very clear. Almost 55 percent of India’s GDP comes from the service class, the time spent in work-related pursuits (travelling to work and actual work hours) has grown sharply, the number of double income families has been on the rise which has meant less together-time despite a higher disposable income, steadily deteriorating infrastructure and environmental conditions and most importantly, a vigorous pursuit of youthfulness to stay relevant in these changing times.

The security services in a mall are still way below international standards and do not address uniquely Indian issues such as two adults monitoring two elders and three kids (!), women feeling unsafe in public spaces, huge ‘class’ friction in many of the mall heartlands causing the mall consumers to fear even the mall staff and the mall security. A conundrum that strikes me every time I visit a mall is the expectation and hope that mall shoppers will shop to their heart’s content but the absence of any designated place to leave the

Unlike the West, Indian shopping groups are big and sometimes as big as seven to eight members! Managing these large groups inside the mall, providing each group with a decongested experience is critical. Apart from the physical space to comfortably browse, malls also need to provide 'people' parking spaces.

Do malls mould their offering to match these new demographic and psycho-graphic realities of India?

INFRASTRUCTURE

Unlike the West, Indian shopping groups are big and sometimes as big as seven to eight members! Managing these large groups inside the mall, providing each group with a decongested experience is critical. Apart from the physical space provided to comfortably browse, malls also need to provide parking spaces for people. These human parking lots will allow the crowd to thin out visually, aid easier navigation within the malls and allow the older members of the group recouping time so that they return refreshed to the shopping trip. My favourite example here is Inorbit mall in Mumbai. The mall has well designed parking spaces positioned most thoughtfully at various nooks and corners of the mall. The trick here though, is to ensure that these parking spaces are not right in front of the stores – it takes away from the ‘buzz’ or vibrancy of the store.

Commercial Street, Bangalore

One of the biggest challenges facing mall developers today is the lack of infrastructural support for the millions of square feet being developed as well as the millions spent in creating the right look and feel for the malls. Given the unavailability of land in prime areas, most malls dot the periphery of the city limits and require considerable effort to access. In an increasingly time-starved world, malls need to ensure that consumer time is spent inside the mall, shopping, rather than commuting to and from the mall. Access to the mall is still a problem with regards to parking – no amount of parking space seems enough! Simplifying the access to the malls is likely to pay rich dividends to mall owners by making the mall a more frequently accessed shopping place rather than a once-a-week shopping destination. More than any other tenant the super and hypermarkets in the mall are likely to benefit from this changed perspective with which shoppers visit the mall.

shopping bags. These shopping bags are carried along from one store to another, deposited and collected from the baggage counter at each store. Why should a consumer shop for more than is necessary under these circumstances?

58

Food court at the Inorbit Mall, Mumbai

consumer-delight so difficult given the number and distinctiveness of the consumer segments to focus on.

SECTION II CONSUMPTION TRENDS FOR SHOPPING CENTRE DEVELOPMENT

Ideally, these parking spaces are best positioned in nooks and corners or near elevators or escalators which are natural decompression zones for consumers on shopping trips.

POSITIONING FOR SIGNIFICANT NICHES Malls today (with very few exceptions) have no defined positioning or reason to score over other malls. It seems that developers put in the same concepts, the same tenants, the same experience (or lack of it) with the amount of space being the only differentiating variable between one mall and the other. For proof of this, one only has to go to the Gurgaon mall road. No less than 10 malls will sit cheek to cheek on this road but there is absolutely no reason to visit one over the other except the ones that have better movies playing or available parking at a certain time of the day. This lack of clear positioning has led to the malls becoming melting pots or socio economic levellers resulting in the upper end of the consuming class experiencing a profound loss of ‘their space’. As the middle classes throng to the malls, the upper classes try to find new spaces to spend their time and money. A long-felt need for an exclusive mall experience is now being realized as more and more mall developers focus on the premium mall concept. Atria, the Millennium Mall in Worli, Mumbai is one such case in point. Several more malls are slated to target this audience in the key metros.

The money is there to be spent if the experience is part of the selling. Premium malls have a lot to learn about service from premium automobile or jewellery retailers or even the hospitality industry. A welcome drink, a cold or warm towel at strategic points in the mall, quick pedicures or manicures/massages, valet to park/retrieve the cars, more efficient shopping trolleys, trained and articulate sales staff (minus the Body Odour)… the list can continue endlessly. Just as the super premium malls are here to stay, so is another concept based on changing psychographics of new India. The concept of the highway mall is appropriately being kick-started by the fountainhead of malls – Gurgaon. Other border areas such as Sonepat, Badarpur etc. are also seeing heightened activity in this regard. The highway malls aim to capture two distinct target segments – the frequent traveller (who works across the border) looking to maximise time by accessing a mall on the way home, and the long-distance, cross country family travellers accessing the mall to rejuvenate, unwind, recoup. My favourite example of a theme mall is a combination of contexts – a room crunch faced by frequent travellers in key metros and a tenant and conversion crunch faced by mall developers. The result – hotel rooms in malls that satiate the huge demand for hotel rooms in India, both by domestic as well as International travellers. The additional facility in the mall is not as much of a burden for the

Haldirams, Kolkata

However what these malls need to do is to go beyond just housing premium pr luxury brands and focus on the ‘premium experience’. Most of the affluent class today travel abroad on work or pleasure (the number

of Indians travelling abroad is increasing by 25 percent each year; just last year, 83 lakh people travelled abroad) and therefore access to premium brands is not an issue. Being made to feel special, having their privacy guarded zealously is more important.

59

SECTION II CONSUMPTION TRENDS FOR SHOPPING CENTRE DEVELOPMENT

Shoppers at MG Road, Bangalore

be most prevalent in these towns and a replicated model will only pique curiosity but fail to translate into desired revenues.

developer as there is no need to acquire fresh land for these rooms. Ansal API and Ambience Hospitality Management are creating about 100 rooms each at two of their malls coming up in Greater Noida and Gurgaon. In keeping with the de-ageing of the country, affiliated needs such as health, looking good and entertainment are becoming prime motivators for shopping. Therefore, concepts that target these needs exclusively are also likely to do very well. Gaming malls, health malls, beauty malls, jewellery malls, sports and fitness malls will mushroom over the Indian retail landscape and also have their dedicated clientele. But unless these malls find a way to make visits to the mall regular rather than occasional, the money to be made here is likely to be slim. These malls should focus on selling a mix of products and services rather than focus exclusively on products. Services are consumed, experienced and forgotten making them perfect to build habit and repeat visits.

LOCALISED MALLS With the keen interest in tier-II and III towns for mall development, mall developers also need to start thinking beyond replicating the International models in theme. Local tastes and preferences are likely to

Developers will have to start understanding the culture of shopping in these towns as well as the relationship consumers share with existing trade in these places. In our experience there is a high degree of variance in shopping group size, composition and expectations. For example, there is an extremely high degree of participation in shopping from the older segment in Gujarat, consumers in Bhopal are likely to visit their traditional outlets for apparel but visit a mall for entertainment and leisure. Consumers in Tamil Nadu and AP are likely to spend much more on the movie experience while consumers in Delhi are likely to spend on the eating out experience. Malls that are cognizant of these peculiarities are likely to allocate space more efficiently to tenants and have a better offering to give the consumers of that region.

COMMUNITY FOSTERING Malls will either intentionally or otherwise have an emphatic impact on the landscape. They are bound to upset traffic patterns, road carrying capacity, parking spaces in surrounding roads or residential areas and most importantly, since malls are typically planned on the outskirts of the city limits, there is also a displacement of the local ethos. Take for example, Gurgaon – what was once a village with an assortment of occupations saw a mall spring up which then gave rise to a plethora of high-rise buildings and opulent complexes. Imagine the imbalance caused by a village and a sprawling newage township existing side-by-side! It is important that developers give something back to the community they so easily become a part of -whether in terms of employment opportunities or infrastructural development or a partnership in ideas. All said and done, if the estimate of 600 malls by 2010 is even remotely true, the novelty value alone will no longer suffice to target the new demographic Indian entity. Tenants too would be loathe to invest in a mall that is just the same as the one down the road! Developers will not only have to think about real estate, restrictive regulations and retail teething problems but also have to build and differentiate their offering credibly and visibly from other malls to survive in the long run. This is the time to start building the knowledge advantage required to build these distinctly and innovatively positioned malls. India is rapidly changing – is mall thinking keeping pace?!

Ladies day out at the Oxford Cha Bar, Kolkata

60

SECTION III MALL DEVELOPMENT: A PROCESS STUDY

MALL DEVELOPMENT: A PROCESS STUDY

Center One, Vashi, Mumbai

SECTION III CHAPTER 1

MALL DEVELOPMENT: A PROCESS STUDY

Center One, Vashi, Mumbai

SEC III CHAPTER 1

MALL DESIGN &

PROJECT IMPLEMENTATION

A

s the modern shopping centre phenomenon continues to impact India's urban landscape, with about 500 malls expected to be operational by year 2010, the chances of over-supply of retail space is also becoming a cause of worry for most developers. What we find today is a proliferation of stereotyped malls coming up in clusters, each offering more or less similar products and services. The need of the hour clearly is a concept and design differentiator. It is the timeless appeal to an artless human emotion; and only, human beings have made a fine art of it. Civilisations have thrived on the pulse of the marketplace. Trade, wealth and urbanisation… Be it the 5th-century-BC Greek agoras,

66

SEC III CHAPTER 1

MALL DEVELOPMENT: A PROCESS STUDY

the ancient Sumerian public squares, or the Italian piazzas, they fulfilled the equally important need of place and opportunity for participation in community life. Young consumer at Pantaloons, Kolkata

Taking on from there, the ubiquitous bazaar has retained its identity and character, though the semblance in the modern shopping-entertainment-lifestyle blocs is not always obvious. But that can be misleading, especially if one considers a mature market such as the United States, where the evolution of the concept has actually come full circle. For, how else does one see those community/lifestyle centres that diverge from the ancient town/village squares only in terms of the sophistication of products, service and design? Nevertheless, even in terms of design, modern-day shopping structures represent an inspired fusion of the strings of mainstreet shopping and community-centric buzz. The result is interesting – a pedestrian shopping environment sought to be complemented by typically high-quality, creative architecture that moves away from the mall cliché and largely mixes the uses. Obviously, landscaping is a critical feature, be it the ponds, brick walkways, pretty paving, park benches, sidewalk cafés, stepped gardens and green spaces.

design element to inspire a psychological situation wherein the casual wanderer becomes a shopper – and putting the whole experience together. There is nothing arbitrary about planning the design of a shopping centre, with various aspects requiring careful consideration:

DESIGN DENOMINATORS Apart from matters aesthetic, design is also a function of practicality and astute planning. From the frontage to the flooring, the lighting to the play of colours, the common space to the parking lot, the visibility to the branding – the design is what defines, differentiates and works. And increasingly, the aim is to touch near-precision point, for the chase, as they say, is both for market-share and mind-share. The idea is: attracting not only prospective occupants of space at the shopping centre, but end-customers as well; attracting the right tenant mix, commensurate with the positioning of the centre; using each

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Feasibility of the site

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Catchments

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Accessibility to the centre

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Local competitor analysis

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Consumer study and

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Legal issues, among others

Spencer’s Super, Kolkata

Brigade Road, Bangalore

These are the criteria based on which the size of the proposed centre and the constituents thereof can be determined

The idea is: attracting not only prospective occupants of space at the shopping centre, but end-customers as well; attracting the right tenant mix, commensurate with the positioning of the centre; using each design element to inspire a psychological situation wherein the casual wanderer becomes a shopper – and in general putting together the whole experience of being present at and shopping at a mall. 67

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optimally. Within the centre, the design plan must clearly lay out the pattern for pedestrian and vehicular flow. To the extent possible, these must be kept apart. The car-parking facilities necessarily form a crucial concern of shopping-centre design.

SHOPPING CENTRE DESIGN AND DEVELOPMENT IN INDIA From just three malls in year 2000, the country is all set to have over 500 malls by 2010; with most of them in different stages of planning, design and construction. It is estimated that roughly 300 million square feet of quality retail space will be accumulated by 2011. This is almost reminiscent of what happened in America in the late '80s and early '90s, though on a very different scale. As Chris LeTourneur, partner and CEO, Thomas Consultants Inc., pointed out in the last edition of this publication: “While it has taken shopping formats around the world centuries to evolve and more specifically shopping malls have taken over 60 years to evolve, India will go through this change process in less than 10 years… India stands to benefit greatly from the lessons learnt elsewhere around the globe relating to the creation of shopping centres.”

Eaton Centre, Middle East

Developers in India have recognised that their challenge lies in concocting a blend of learning from international experiences along with local 'Made in India' solutions. There are literally millions of square feet of new shopping centres being constructed that will become operational in the next five years; and which will have a profound impact on the direction that organised retailing takes in India. Some of these centres will survive, while others will be replaced. It is a hugely competitive market out there for developers and retailers alike; but India still has the benefit of learning from the experiences in shopping centre design and development from the many other countries around the globe who have already passed through this cycle. Apart from the functional convenience, the novelty of the mall concept continues to stand it in good stead in India, like it did in the other countries. But what is happening here is, not surprisingly, something in the likeness of a vision-blinding downpour. The long-term prospects are behind a cloud, so to say. And the fact is that the investments and stakes are too high to not merit a re-looking at the way the winds are blowing. Leaving the cost calculations aside, how many of the planned projects are actually underpinned by well-thought-out planning, be it in the context of space, infrastructure, parking, positioning, management, or design? At this stage, most developers have been able to sell mall space prior to, and also during, the construction phase to generate the requisite funds. Often, 50 to 80 percent of the space is sold out even before the construction is completed. This can turn out to be a classic quicksand situation, and there may be reason to feel uneasy about the success rates.

Developers in India have recognised that their challenge lies in concocting a blend of learning from international experiences along with local 'Made in India' solutions.

So, what factors will clinch the crown for the long-term winners? For, finally, there are only so many numbers and 68

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types of retail/entertainment/food merchants to occupy space in the mall. There is no alternative but to plan well and create a differentiator in the market.

MALL DEVELOPMENT: A PROCESS STUDY

Most international shopping centres follow a themed storyline, which steers the end-user from one destination to the other and keeps the interest sustained throughout the shopping experience. These areas are visually appealing and pleasant. Technology – lighting, waterscapes, landscaping – is important too.

Size Does Matter With hypermarkets and other 'big box' retail formats having made their entry into the Indian consumer's psyche like never before, the sizes of malls are ever-increasing. From the typically 20,000 to 40,000 sq.ft formats of 2003-04, today a Big Bazaar, a Hypercity (Mumbai) or a Total hypermarket (Bangalore) itself commands over 1,00,000 sq.ft of floor area – forcing the total mall space to escalate to 2,00,000 sq.ft and beyond! The Great India Place in Noida, and the upcoming AmbiMall in Gurgaon are cases in point, where huge, sprawling shopping structures have been constructed.

Sacred Spaces Strong anchors, mini anchors and all the different retail zones in a shopping centre have a role to play. Each zone is classified based upon the estimated footfalls, the profile of the targeted end-user, the product categories one is defining, and the brand identity of the retailers. The zones are accordingly designed to obtain the desired ambience through creative use of lighting, sound, colour and texture.

Retail Mix Many concur that ultimately it is the retail mix that defines the environment that needs to be created and fortified through designing. In fact, the traditional shopping environment in India over a period of time has gradually evolved into a more structured version of a shopping centre, with well-laid-out stores flanked by strong anchors and distinguished by a deliberately zoned environment for the ease of shopping experience of the end-user. Entertainment areas with multiplexes and gaming spaces, along with F&B zones and food courts are a necessity in planning a good mall today.

Crystal Fountains, Al Kout, Kuwait

Most international shopping centres follow a themed storyline, which steers the end-user from one destination to the other and keeps the interest sustained throughout the shopping experience. These areas are usually well-lit and visually appealing and pleasant. Here the signage, lighting effects,

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sound and environmental graphics play an important role. Technology – lighting, waterscapes, landscaping, visual/animated feature elements – plays an important role too.

Vehicle parking, which can act as a key element in making a success or a failure out of a shopping centre, is a definitive constraint here in India. It is emerging as one of the key factors in consumers' decisions on where to go shopping. Convenience, accessibility, security and fee are preponderant factors that play on the shopper's mind while making a mall visit.

Circulation Circulation in the context of shopping centres should be created to enable the space to conveniently accommodate movement of people around the mall both horizontally and vertically. Space within a store should be designed in a manner in which a harmony, relationship and movement of traffic between different areas is maintained. Food courts in a mall should be strategically located in such a manner that the peripheral noise is avoided, but at the same time facilitates maximum visibility. The obvious reason: to increase the number of footfalls (which may increase the number of conversions) in the shopping centre. Clear demarcation of spaces also acts as a guide for a customer while strolling inside the store. Retailers today demand more column-free spaces for the optimal utilisation of leased area and more height for the appreciation of spaces in the store. The need of large lobbies and circulation spaces such as atrium and lounges has increased the loading of gross leasable area (GLA) over the super-built up area in shopping malls. Most mall developers in India have been traditionally charging 25-30 per cent as a loading factor on usable area. This is because the sanctioning authorities include the area consumed by lobbies, lounges and atriums in the calculation of total floor space index (FSI). Global standards, in contrast, suggest that five to 10 percent of the total built-up area is allowed free of FSI for such areas in shopping centre

design. Parking Vehicle parking, which can act as a key element in making a success or a failure out of a shopping centre, is a definitive constraint here in India. It is emerging as one of the key factors in consumers' decisions on where to go shopping. Convenience, accessibility, security and fee are preponderant factors that play on the shopper's mind while making a mall visit. As the percentage of car ownership goes up in India, the upcoming malls must plan to maintain the ratio of parking space to retail space. Alongside, developers must adopt a professional and methodical approach to managing parking amenities, using technology to control traffic flow, delivering user-friendly services, and improving security. A good solution is to create space efficiencies by using less land optimally, supported by technology. Multi-level parking garages provide a very good alternative, besides also effectively placing most vehicles close to the shopping action. Parking plazas atop buildings can be considered, too.

Signages at the MGF Metropolitan Mall, Gurgaon

The Aesthetics of Synergy In an ideal world, all shopping centres would be structured to strike a balance so as to ensure uniformity for the mall; and at the same time, to take care that each store retains its individuality. And nothing less than the ideal would work in a world that is never short of ideas and visionaries. The 'next big idea' will always take over. Among the leading retail companies in India, the shopping centre concept is starting to attain more distinct outlines. They know what they are, and ought to be, looking for. This calls for a fine balancing act between hardcore practicalities and sensibilities of the other kind. It is location, catchments, type of tenant/brand mix and the infrastructural facilities within the 70

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Lido Mall, Bangalore

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shopping centre that make up the main criteria for final selection. In close succession follow adequate space within and provision for parking facilities. This is the point wherefrom design begins to assert itself.

CONCLUSION Design as an important element is finally coming on its own, since retailers have realised that this is what underlines and binds the customer's gamut of experiences at the shopping centre. In particular, the consideration is for spatial allocation between different tenants, space and layout of the store, floor plate, navigation offered to customers, store exteriors and fittings provided, accessibility for store staff, space for merchandise, displays and signage. Finally, mall developers in India need to be open to innovation as organised retail develops and evolves by itself. There is scope aplenty as the industry itself is at a transformational stage and changes

can therefore be implemented quickly. At the end of the day, retailers, other tenants and investors are an enlightened audience. Whether one is an investor/retailer, the ultimate focus is to encash investments. To make that happen it is very essential that the shopping mall should be so designed that it is able to bring home the revenues. This can only be executed when design formats are so evolved that they are able to cater to traffic mobilisation, create values for the brand, and, most important, are synergistic in nature. When brands do not synergise, the net worth of the architectural design will fail to deliver. Now more than ever before market forces demand that we create a more dynamic and distinctive environment. The first reason being competition: big box and hypermarket retailers have captured mass-market commodity purchases; and secondly because of the continued segmentation of retail 71

offerings into narrower and deeper demographic targets. Consumer profiling today has become a social science replete with experts who can describe distinct shopping profiles with individual aspirations and expectations! Regardless of whether a shopping centre in India today fulfils all of the abovementioned design criteria, we need to recognise that the average shopping time among urban Indian consumers is getting shorter; and also that it's considered convenient only when the store has value-priced offerings. An important trend in shopping centres today is the growing percentage of F&B and entertainment retailers, who are proving to be effective in extending the shopping visit. Creating interior environments that enhance these elements and promote an extended mall visit is just as critical as the provisions of character, features and amenities that encourage more frequent trips.

MALL DEVELOPMENT: A PROCESS STUDY

Crossriver Mall, Delhi NCR

Orchid City Centre, Mumbai

The Forum, Bangalore

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DESIGNING INDIA'S MALL POTENTIAL BY ANUJ PURI > Chairman & Country Head > Jones Lang Lasalle Meghraj

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etail in India is changing the way consumers perceive and experience shopping. The process of evolution began with the traditional high street and air-conditioned shopping complexes of the pre-1990s era. These eventually led to the growth of the present day large shopping malls, multiplexes and shopping centres. Such shopping establishments are not limited to India's metro cities alone – tier-II and III towns too are appearing on the retail map with increasing prominence. The increasing demand for new format retail stores has put pressure on shopping centre architects and designers to create lifestyle destinations that match international standards in shopping establishment design. Can we claim that India's retail districts have attained a level of design and ambience comparable with those in developed countries? We are getting there, but the answer is still a resounding 'no'. Rather, we are at a stage where the retailers, developers and investors 72

MALL DEVELOPMENT: A PROCESS STUDY

Citi Mart, Kolkata

Shoppers’ Stop, Mumbai

Inorbit Mall food court, Mumbai

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Space for various retail formats, such as highend boutiques or jewellery stores, fashion outlets, supermarkets, stores for white goods, electronics, entertainment etc., all have segregated occupiers. Such segregation of spaces is currently observable in a few upcoming retail formats in India. perceive the need for additional innovations in mall design. We still have a long way to go. The design process of any retail format is largely dictated by the target consumer's culture and behavioural pattern. In other words, one cannot transplant one set of design patterns from one place to another. However, international standards in designing and circulation of spaces can and should inspire formats for shopping centres in India.

THE INTERNATIONAL BLUEPRINT Let us consider the international best practices observed in designing of retail 73

formats. These stores are generally characterised by the large volume of space that they occupy, and their capacity to attract customers from the immediate catchments as well as beyond. Such stores, often called city centres or malls, are situated in out-of-town locations made sustainable due to the robust infrastructure, which allows weekend trips to such locations for shopping and leisure. The interiors, exteriors and ambience they create suggest a definite strategy of the mall developers in imagecreation. The format's potential is gaining recognition in India, but how many family destinations or Family Entertainment Centres (FECs) can we boast of? Not many. One of the main reasons for this lack is of course the high real estate cost. However, there are some large shopping centres coming up, and these have made their mark in the highly competitive retail estate market in the country.

ELEMENTS IN THE DESIGN PROCESS Occupier Identity Internationally, it is possible to identify proper demarcation of the occupier mix. There is a clear strategy for the placement of occupiers within a mall. Space for various

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magnet for attracting customers to the store (and eventually to the mall). Hence, a proper understanding of the requirement of anchor spaces is necessary before starting the design process. These spaces should follow a path, which connects the other activities of the mall. Parking

Design is the differentiator

This is a make-or-break design point for a shopping centre. Global standards show that parking space is generally allotted on the ground or on the higher number of floors, be it a superstore, a discount store, a mall or a FEC. A perfect example in this context would be the parking space allotted for Warner Village (parking on higher floors) in the UK, or the one for Wal-Marts (parking on ground floor) in the US.

The need of large lobbies and circulation spaces such as atrium and lounges in shopping malls has increased the loading of gross leasable area over the super built-up area. Mall developers in India have been traditionally charging 25-30 percent as a loading factor on usable area.

Parking woes

Parking is designed considering the flow of traffic during peak hours. Developers in India, however, seem to be averse to creating parking space at ground level. This can again be attributed to the large ground area required, and the implied increase in real estate cost. Parking in Indian malls is generally allotted in the basement. As per municipal regulations, one car per 1,000 sq.ft of area is sufficient, while the global norms denote at least one car per 250 sq.ft of area.

retail formats, such as high-end boutiques or jewellery stores, fashion outlets, supermarkets, stores for white goods, electronics, entertainment etc., all have segregated occupiers. Such segregation of spaces is currently observable in a few upcoming retail formats in India. However, the flow and location of different spaces need to be viewed in the context of customer shopping and entertainment patterns.

Indian developers are now learning that adequate parking is a critical component of the shopping experience, and that adequate parking space needs to be given to shoppers free of charge. Ratio of Super Built-Up to Carpet Area The need of large lobbies and circulation spaces such as atrium and lounges in shopping malls has increased the loading of gross leasable area over the super built-up area. Mall developers in India have been traditionally charging 2530 percent as a loading factor on usable area.

Food courts should be strategically located in a manner that avoids noise but boosts visibility. The obvious intention behind such design strategy is to increase the number of footfalls (which in turn may increase the number of conversions) in a shopping centre. Clear demarcation of spaces also acts as a guide for a customer while strolling inside the store.

This is because the sanctioning authorities in India include the area consumed by lobbies, lounges and atriums in the calculation of total Floor Space Index (FSI). However, global standards suggest that five to 10 percent of the total built-up area be allowed free of FSI for such areas in the shopping centre design

Anchor Spaces Mall designers in India understand the importance of anchor spaces. These are very evident in every shopping centre. Such anchor spaces are occupied by large retailers and act as a 74

After understanding these design elements, should we then ape the West in the creation of shopping centres for our country? We suggest that global standards be adopted for the creation of large spaces in the local context of shopping, eating and other habits of Indian consumers. . Other Spaces Retailers use the volume of space available to them as a medium of interaction with the end-users or customers. Most retailers (globally) love spaces with floor-to-floor height of about 16-20 feet. However, Indian developers, until recently, have been using a standard height of 14 feet. This has resulted in a lot of heartburn among the country's retailers. Retailers now demand more columnfree spaces for the optimal utilisation of leased area, and more height for the appreciation of spaces within the store. Circulation In the context of shopping centres, circulation is the ability of the space to conveniently accommodate movement of people around the mall – both horizontally as well as vertically. All the spaces in the store should be designed in such a manner that a harmony, relationship and movement of traffic between all the different areas are maintained. Interiors and Ambience From the point of view of retailers, well-lit (either artificially or naturally) lobbies, atriums and store spaces as well as elegant and good flooring are of utmost importance to attract customers. Lighting and interiors should be in line with the themes and subsections of the overall shopping centre. For example, spaces for movie auditoria can have a darker interior and coloured lights that focus on displays, while the sections for catering and children's stores should have more lively interiors. Wherever 75

possible, natural light through glass or canvas can be used. Hoardings and Signages Hoardings of advertisements (one of the revenue sources for mall developers) and signages are design elements for shopping centres; and hence proper care should be taken in placing these at appropriate places. This should be considered as a part of the overall design process. Retail formats of the pre-1990s severely lacked these essentials. Façade Treatment Most Indian malls have a modern look with glass and aluco-bond façade treatments. In an attempt to create an international image, the architectural vocabulary of today's Indian malls denotes heavy Western influence. However, these spectacular façades have tempted mall developers to load its cost on to the retailer. The question that arises at this juncture is – is it applicable to have such fascinating and expensive treatments for façades in shopping centres? It of course depends entirely on the design concept perceived by the designer. Probably, designers feel that to create an inside-out image (which is in vogue at present) glass and aluminium are most suitable. After understanding these design elements, should we then ape the West in the creation of shopping centres for our country? We suggest that global standards be adopted for the creation of large spaces in the local context of shopping, eating and other habits of Indian consumers. A retail space is no longer a store – it is a stage. It is an environment that tells a story, creates an image and sets a mood. Hence, the proper utilisation of design elements will definitely make a difference in creating

Citi Mart, Kolkata

MALL DEVELOPMENT: A PROCESS STUDY

Fabindia, Mumbai

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DIFFERENTIATION

BUILDING SPECIALITY MALLS BY NV SIVAKUMAR > Executive Director and Retail & Consumer Industry Leader > PricewaterhouseCoopers

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ndia's retail sector is burgeoning and presents an exciting opportunity for retailers and for consumers alike. Consumers are witnessing an increase in modern trade formats, especially in the number of malls which offer convenience, atmosphere and ambience. Shopping malls entered the Indian retail market in the latter half of the 1990s. Compared to less than 30 operational malls in 2003, IMAGES F&R Research estimates that with over 600 malls being built, retail space will exceed 40 million square feet with an average size of 1,000 square feet per brand.

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Fort Knox, Kolkata

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Gold Souk, Gurgaon

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watch a movie at the multiplex, eat at the food court, use the entertainment zone or enjoy a family outing on a Sunday morning.

It is important to understand the issue of design differentiation from three perspectives: n

Building specialty malls

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Attracting footfalls that are more targeted, niche-oriented and therefore, more likely to spend than regular footfalls

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Offering unique facilities to incentivise consumers to spend at malls

Over 60 percent of visitors enter malls to watch a movie (ie., visit a multiplex) or to eat (ie., visit a food court)

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Only about 30 percent enter a mall to shop!

Studies suggest that:

With the proliferation of malls, it will become imperative, from the perspective of the real estate developer and anchor and tenant stores, to differentiate themselves from other malls that may be located just a few kilometres away. Developers and tenants need to work together to develop strategies for incorporating marketing strategies, promotions and customer segmentation tactics to drive footfalls, increase expenditure per footfall and further differentiate themselves with shoppers.

India will soon have over 50,000 retail outlets. However, with approximately 300 national brands available currently, most of these malls will have a very similar tenant mix, with the same brands available across almost all shopping centres. Given that malls may offer the similar stores, not to mention a parallel high end 'look and feel', it is even more important to ensure a differentiated shopping experience to consumers that can set one mall apart from another.

A DIFFERENTIATED SHOPPING EXPERIENCE

FOCUS AREAS FOR DIFFERENTIATION

One way to offer a distinct shopping experience is to offer stores that fall under a specialty category such as gold and jewellery, luxury products, home goods and décor, home improvement, etc. Indeed some malls are being built or are already built which are already present in these categories. Some potential categories that real estate developers are considering for specialty malls focus on children, women and consumer durables. Malls that are differentiated in terms of their offerings appeal to customers' specific needs and provide an outlet for dispensing against those needs!

Other malls are embarking upon differentiating themselves by offering exclusive features and facilities such as:

Mango store at Atria Mall, Mumbai

Specialty malls also tend to attract footfalls that are more likely to spend on purchases than regular footfalls, which are present in traditional malls. Consumers who come to specialty malls do so with a specific purpose and goal in mind; consumers that enter traditional malls may be doing so to

Total Mall, Bangalore

MALL DEVELOPMENT: A PROCESS STUDY

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Entertainment and gaming facilities

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A hotel-cum-shopping mall complex where hotel guests can frequent and shop in the mall

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Safe recreational areas for children

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Large food courts which offer a variety of cuisine that meets the needs of Indian consumers' changing palates

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Water and theme parks that are attached to malls

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Creating 'India's largest' which could imply creating India's largest food court, having India's largest saree shop, India's largest toy shop, etc., on mall premises

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FUNDING REAL ESTATE DEVELOPMENT IN INDIA

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ndia's commercial real estate stock is estimated to be the fourth largest in Asia, following Japan, China and South Korea. However, this still represents a small fraction of the global commercial real estate stock, which totals roughly US$19 trillion (INR 781,000 billion/arawb). Getting accurate and reliable data on overall real estate investments, especially in the emerging markets like India, is quite a difficult task and most studies are based on broad estimations of the total size and investment potential. In India, even the institutional real estate market is just started 78

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showing up. The investible stock in India amounts to only about 27 percent of the total stock that can be classified as investment grade. In contrast, China's investible stock is 35 percent of its total investment grade stock and that of Japan's is 65 percent. With the Indian economy growing strongly, the demand for office, retail and logistics space is simultaneously set to expand significantly in the next few years. It is estimated that this growing demand would effect an increase in India's investible real estate stock by US$18 billion (INR 64,056 crore) by year 2010. Even this is still a conservative estimate as it can be expected that with the maturing real estate market, even greater institutional investment activities will result. The following are the most important sources of financing the real estate market in India: n

Private Debt

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Private Equity

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Public Debt

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Public Equity

PRIVATE DEBT Private debt is the most important source of financing real estate in India. It accounts for nearly 60 percent of all institutional real estate investments. Strong demand for commercial real estate lending in the last three years was boosted by steeply falling interest rates, a vibrant real estate investment market and a rise in corporate outsourcing activity. Statistics available for the past five years indicate that bank loans for commercial real estate increased by more than 500 percent during 2001 to 2006. This number is poised to grow further in

the next few years, despite the RBI's attempts at decelerating credit growth with a view to curbing inflation.

PRIVATE EQUITY Private investors also play an important role in the Indian real estate investment market. At the end of 2005 private equity accounted for about 40 percent of the country's real estate capital market. This market segment is rapidly growing as is evident from the fact that in 2005 private property companies and individuals' holdings of real estate grew by 40 percent over the previous year. The Indian pension fund system is still poorly developed, and as such its exposure to real estate is still limited. Regulation mandates that at least 60 percent of asset allocation is in government securities or other approved

securities. In the private equity category, pension fund counts as the second largest investor, but its exposure to the real estate sector is still very limited. Changes in the pension funds' asset allocation strategy will largely be driven by changes in regulation, but till such time, pension funds will continue to keep their large positions in government bonds and other approved (and more 'secure') instruments. This holds good for insurance companies as well, as they still regard real estate investment as risky. Regulation for insurance companies' investment strategies also remains restrictive, explaining their small exposure to real estate. No major change in this can be expected in the near future unless the regulatory bodies decide to ease the policy prescriptions.

With the Indian economy growing strongly, the demand for office, retail and logistics space is simultaneously set to expand significantly in the next few years. It is estimated that this growing demand would effect an increase in India's investible real estate stock by US$18 billion (INR 64,056 crore) by year 2010. 79

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The Security Exchange Board of India (SEBI) approved the formation Real Estate Funds (REF) in 2005. This has facilitated the formation of real estate mutual funds, which are expected to get operational in 2007. This will herald a new era abd avenue of real estate investments for the common retail investors. At present, REFs are only open to high net-worth individuals (HNIs), institutional investors and global investors.

PUBLIC DEBT The public debt market, which here only comprises outstanding corporate bonds and Commercial Mortgage-Backed Securities (CMBS), is in the very early stages of its development in India. In the last few years there have been no CMBS issuances in the Indian market, implying that this market is dominated by Residential Mortgage Backed Securities (RMBS). These have indeed played an important role in Indian securitisation in the past six years, particularly because of the fast growing residential sector and low cost of financing.

PUBLIC EQUITY Neither Real Estate Investment Trusts (REITs) nor Real Estate Mutual Funds (REMFs) exist in India, implying that the real estate public markets are still limited. The only way to invest in real estate in the public market is through listed property companies, but there are only a handful of these currently.

alternatives, commercial bank lending seems to be the most efficient way of raising capital in India. But both the private equity and private debt markets are also set to grow significantly over the coming years, profiting from further project developments and more foreign direct investment. In contrast, the public markets are set to remain relatively small over the next years, until the private markets increase in scale and the broader capital markets undergo significant development.

Need For Real Estate Investment Mutual Funds It is expected that REITs will be introduced in India this year. The demand for REF is strong, as numerous private investors have already burned their fingers by putting their money in the wrong properties. It is not possible for individual investors to verify all technical aspects of property and at times they also have to take recourse to bank loans to meet the complete cost of a unit. The sudden upswing in bank interest rates in 2007 has compelled many such investors to sell off their holding at a loss. With the coming of real estate mutual funds these private investors will get a safe avenue for investing their surplus savings. This could well be the catalyst for the future development of Real Estate Investment Mutual Funds, much on the lines of what we see in the United States of America, where REITs (Real Estate Investment Trusts) own most properties in the retail, commercial and residential domains.

REAL ESTATE INVESTMENTS IN INDIA An active domestic commercial real estate investment market has gradually emerged since the turn of this century, in response to growing demand for modern commercial space. The investment market has grown rapidly, especially since 2005, due to perceptions of strong market fundamentals with good longterm growth prospects, the emergence of specialist real estate vehicles and the participation of foreign investors. India now faces the prospect of cross-border real estate investors, with both domestic and global capital seeking real estate investment opportunities here.

The creation of REITs will undoubtedly improve transparency and liquidity on the real estate capital market. In India, the introduction of Indian REITs and/or REMF in 2007 might provide investors with a comfort zone to reduce the transparency and liquidity risks. This will also provide a wider range of choices for investors to engage in real estate investment considering the current limitation of the public property sectors.

The creation of REITs will undoubtedly improve transparency and liquidity on the real estate capital market. In India, the introduction of Indian REITs and/or REMF in 2007 might provide investors with a comfort zone to reduce the transparency and liquidity risks.

CAPITAL FLOWS AND FUTURE PROSPECTS Although the Indian real estate capital market is still small, its growth momentum so far is remarkable, especially in the private equity and debt markets. Owing to a lack of

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As discussed, the current investment market includes active participation from domestic real estate funds, institutions, high net-worth individuals (HNIs) and local developers. Domestic debt remains a strong financing option, primarily in the form of construction finance as well as lease rental discounting. Crossborder investment activity is currently dominated by players Singapore and other Asian countries, and also by the US opportunity funds. A good number of European players are also now looking at options to enter the Indian real estate market.

MALL DEVELOPMENT: A PROCESS STUDY

Domestic Participants The domestic equity route comprises four main groups -dedicated real estate funds, institutional funds, high net worth individuals and developers: Dedicated Real Estate Funds: The last two years have seen the mobilisation of investible funds by several dedicated real estate funds, such as Anand Rathi Real Estate Opportunities Fund, Dewan Housing Realty Fund, Kshitij Fund, TCGRE, Reliance Private Equity, etc. Historically, their focus has been on India's tier-I cities (Delhi, Mumbai, Bangalore, Chennai and Kolkata), but such funds are now increasingly seeking out opportunities in tierII cities, such as Hyderabad, Pune, Jaipur, Ahmedabad and the like. Institutional Funds: Major financial institutions such as ICICI, HDFC, IL&FS and Kotak Mahindra have all launched real estate funds, either as joint ventures or sole investors. Most institutional funds operate on a pan-Indian basis, and are increasingly looking at opportunities in tier-III cities, in order to gain the 'first mover advantage'. High Net-Worth Individuals: India has a large community of high net-worth individuals (HNIs) and family-run businesses, which have substantial funds to invest in real estate. Significant

There are a number of cross-border investors active in the market. Their entry has largely been through the development route or venture capital funds, and their focus so far has been on IT parks and residential townships. level. investment interest has also been witnessed from the cash surplus non-resident Indians (NRIs), primarily from the USA. HNIs are increasing their presence in residential, commercial and retail space. In most cases they invest directly into real estate assets. Domestic Developers: Domestic real estate development companies have increasingly participated in land auctions and have invested in buying land for development purposes. Most of these companies participate with an equity partner/institutional fund when bidding for land parcels. Some development companies are now looking at a listing in the stock exchange as a means of securing additional equity capital to fund their ambitious growth plans.

Global Participants There are a number of cross-border investors active in the market. Their entry has largely been through the development route or venture capital funds, and their focus so far has been on IT parks and residential townships. Foreign Developers: Developers from Singapore, such as Ascendas, GIC, Keppel Land, Capita Land and Lee Kim Tah Holdings are the most active group. Ascendas, one of Asia's 81

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MALL DEVELOPMENT: A PROCESS STUDY

leading business space providers has been active in India since 1999, and owns IT parks in Bangalore and Hyderabad, and is building IT parks in both Chennai and Kolkata. Ascendas launched a US $350 million (INR 1,440 crore) India IT Parks Fund in 2005, with GE Capital subscribing US $63 million (INR 260 crore). Most Asian development companies have focused on tier-I cities, primarily in residential and commercial assets. Other Asian developers include Emaar (based in Dubai), which is developing integrated townships in India's tier-I and II cities. In January 2006, it announced a US $4 billion (INR 16,450 crore) joint venture with MGF Land (Emaar MGF), representing India's largest real estate FDI. Real Estate Funds: Real estate funds, including private equity funds as well as dedicated real estate

funds, are increasingly becoming the preferred entry route for cross-border investors, particularly amongst US investors. Tishman Speyer, Vornado Realty, GE Capital, Warburg Pincus, Citibank, Apollo Real Estate and Morgan Stanley are all active, mostly through JV real estate funds. Tishman Speyer, for example, formed a joint venture in April 2005 with ICICI Ventures, the private equity arm of ICICI bank. TSI Venture Funds plans to invest close to US$1 billion (INR 4,112 crore) over the next five years.

TRENDS IN INDIAN REAL ESTATE INVESTMENT Several global and local factors have converged since 2005 to culminate in the unprecedented interest in Indian real estate by global and domestic investment funds. But it has taken almost ten years for the Indian real estate market to evolve to its present stage, after having completed a full cycle. Ever since the correction of the late 1990s, the real estate market has emerged from its phase of consolidation; and since the early 2000s it has been on a growth and expansion phase. In the years of resurgence, the transformation of the Indian real estate sector has been driven by consistent growth of the economy and business, growing incomes and aspirations as well as enthusiastic supply response. The scale of transformation achieved till now has not been insignificant considering that a few years back the sector was insulated from foreign investment.

Trends in Real Estate Investment The opening up of investment into real estate markets has meant that real estate project financing can come from various routes including – mezzanine financing, private equity investment, private placement with institutions/HNIs, funding through capital market route either on Indian bourses or internationally (AIM listings) and external commercial borrowings (ECB) in case of integrated townships. Debt funding has also turned a corner by being far more accessible for developers. Along the way, domestic banks and financial institutions also altered their view on exposure to the real estate development sector with funding institutions taking exposure to real estate development and construction projects in a big way. Moreover, the last couple of years have been a sort of 'golden age' for real estate and construction companies listed on the major stock exchanges. The need for developers to continually expand in a competitive environment and acquire land tracts for achieving bigger size, meant recourse to large fund corpus at competitive rates. This led more and more unlisted real estate companies to consider seeking recourse to the capital markets through the initial public offer (IPO) or rights issues. According to press reports in 2006, real estate IPOs were the second 82

SEC III CHAPTER 1

largest mobiliser of funds from the stock markets (INR 3,993 crore) second only to energy companies. Apart from seeking recourse by listing on Indian stock exchanges, real estate companies have found an alternative funding route in the Alternative Investment Market (AIM) of the London Stock Exchange. Listing on AIM gives companies access to liquid global funds at close to international lending rates, flexibility of listing companies abroad and achieving an international profiling. Though the number of Indian real estate companies listing on AIM is a handful as of now, it is by no means insignificant. In fact in future, this is expected to be an important source of funds for Indian development companies and real estate funds.

Policy Enablers On the policy front, the government has initiated several reforms in the real estate sector. For opening the door for the foreign investments, the Foreign Direct Investment (FDI) in Real Estate policy draft was announced in 2002, which would permit FDI up to 100 per cent for development of integrated townships, including housing, commercial premises, hotels, resorts, city and regional level urban infrastructure. This policy sought to attract foreign direct investment into integrated townships with the basic threshold of investment set at a minimum of 100 acres. Although the policy was a bold step considering the time when it was announced, the policy turned out to be quite restrictive given the high super threshold of investment, the stringent delivery norms and the

MALL DEVELOPMENT: A PROCESS STUDY

limiting repatriation clauses. The lukewarm response to the 2002 FDI policy did not go unnoticed by the policy makers and after considerable deliberations with the Industry, a far more liberalised real estate FDI policy was unveiled in February 2005. Through the second FDI policy the government decided to allow foreign investment up to 100 per cent under the automatic route in townships, housing, built-up infrastructure and construction/development projects. This policy significantly reduced the threshold norms of minimum area to be developed under each project to 10 hectares in case of serviced housing plots or 4,50,000 sq.ft in case of construction-development projects. This new policy significantly liberalised foreign investments in the real estate sector in India, as a result of which we find high activity in real estate sector leading to high appreciation in real estate costs across the urban centres. Foreign real estate funds and developers were quick to respond to the new opportunity in the Indian real estate arena.

Real Estate Funds in India According to Jones Lang LaSalle Meghraj, there seem to be anywhere between 100 to 120, India specific real estate funds (global and domestic) in various stages of operation: n

It is quite an uphill task to arrive at a broad figure for the investment that is in the pipeline. Reports indicate FDI flows in real estate have been in the range of US$7-10 billion (approximately INR 30-40 thousand 83

MALL DEVELOPMENT: A PROCESS STUDY

crore) since the policy announcement. Given the number of funds operational and others that are planning to enter the country, it is quite possible that all this figure taken together could be as much as US$15 billion (INR 60,000 crore) n

n

It is possible to further classify a subset of all the abovementioned funds as 'active', which could include funds that have operations on ground in India and are actively sourcing investment transactions. It is estimated that anywhere between 50-60 percent of the total number of funds stated previously can be segmented in this category Based on available data from primary and secondary sources, on a ballpark basis, the indicative average corpus per fund ranges between US$250-300 million (INR 1,000-1,250 crore). It is important to note here that there are quite a few proprietary funds, whose corpus is not defined at

the outset and could change over the years. Also the indicative figure stated would be the typical size per fund and not per principal investor n

The real estate funds are not just restricted to the traditional large metropolitan cities, when it comes to sourcing investment opportunities. Despite the fact that these funds have been on ground for just over an year, there are instances of real estate funds seeking opportunities even in smaller metro cities and towns (classified as tier-II and III), which is indicative of the availability of opportunities in smaller towns and the flexibility of funds to consider the same

In line with the strong macro economic indicators in the Indian economy, the industry seems quite upbeat, expecting the GDP growth rate to be in the range of 8-10 percent by 2009. Regarding the future growth potential of the Indian real estate market, fund houses in India are on an upbeat

mood, being confident that the real estate sector will remain stable over the next couple of years. In terms of overall investment attractiveness, the ranking of cities according to Jones Lang LaSalle Meghraj is as follows: n

Chennai, Delhi & NCR, Mumbai, Bangalore and Hyderabad in the tier-I category, and

n

Pune, Kolkata, Chandigarh, Ahmedabad and Indore in the tier-II category

It is largely felt that there is a definite scarcity of ready 'investment grade' product as of now, as a result of which real estate funds have had to devote longer time in screening and evaluation of deals. Unrealistic valuation expectations, regulatory hurdles, lack of clarity in land titles, developer's credibility and transparency issues are the main concerns that continue to create bottlenecks that lead to distortions in the deal making process.

Kshitij's Cosmos Mall, Bangalore

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LEGAL

AND REGULATORY ASPECTS OF REAL ESTATE DEVELOPMENT IN INDIA

A

s almost every form of modern business activity is guided by legal processes to ensure the smooth conduct of operations, the business of retail real estate development too is guided by such laws and regulations. Here we discuss some of the most prominent acts and regulations relating to the commercial real estate market in India.

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MALL DEVELOPMENT: A PROCESS STUDY

Laws/Regulations Governing Retail Industry The Standards of Weights and Measures Act, 1976 The Prevention of Food Adulteration Act, 1954 The Trademarks Act, 1999 The Employees' States Insurance Act, 1948 The Employees' Provident Funds Act, 1952 The Contract Labour (Regulation and Abolition) Act, 1970 Other Central Regulations/Acts n

Restriction on sale of common salt (Rule 44h).

n

Restriction on use and sale of artificial sweeteners (Rule 47).

All-India: the standards of weights and measures act, 1976

n

Prohibition on sale of permitted food colours (Rule 48a).

n

Prohibition on sale of permitted food additives (Rule 48c).

The Act is applicable to the whole of India:

The Trademarks Act, 1999

n

Enacted to establish certain standards with regard to weight and measures, regulate inter-state trade or commerce for goods sold or distributed by weight, measures or number and matters incidental thereto.

n

Verify and stamp, the weights, measures, balances, etc., once in a year.

n

With regard to retail sales, retailers have to comply with the Standards of Weights and Measures (Packaged Commodities) Rules, 1977.

n

Under the Standards of Weights and Measures (Packaged Commodities) Rules, 1977, the packages for retail sale shall contain the following details: Name of the commodity, Net Contents, Maximum Retail Price, Date of Manufacture/Packing, Name and Full Address of the Manufacturer or Packer.

Each retail brand has a unique image and as such retailers also have to comply with regulations relating to The Trademarks Act, 1999. Some of the provisions are as follows: n

The Prevention of Food Adulteration Act, 1954 The Act is applicable to the whole of India and aims at making provisions for the prevention of adulteration of food. The main prohibitions under the Act are as follows: n

Prohibition on the Manufacture, Sale, etc. of certain food articles

n

Prohibition on use of certain expressions while labelling of edible oils and fats (Rule 37 D).

n

Prohibition on sale of certain admixtures (Rule 44)

n

Prohibition on use of acetylene gas (Rule 44 Aa). Prohibition on sale of food articles coated with mineral oil, (Rule 44 AAA and Appendix B).

n

Prohibition on sale of admixtures of ghee or butter (Rule 46).

n

Restriction on sale of Kangra tea (Rule 44e).

n

Conditions for sale of flavoured tea (Rule 44g). 86

Application for registration of trademark has to be filed in the office Registrar of Trademarks within whose territorial

MALL DEVELOPMENT: A PROCESS STUDY

SEC III CHAPTER 1

n

FEE PRESCRIBED OFENCE

FEE PRESCRIBED PENALTY

B. Register of employees - Form No.7

Non-standard weights or measures, or numeration.

Imprisonment upto six months, or fine upto Rs.1,000 or both. In case of second or subsequent offence, imprisonment of upto two years and also fine.

C. Return of Contributions - Form No.6 D. Accident register - Form No.15 E. Inspection Book & First Aid Book

Quotation, etc in non-standard Fine upto rs. 2000/-. Incase of second or weights and measures Subsequent offence, imprisonment for a Term upto 3 years and also fine.

The Employees' Provident Funds Act, 1952

Sale, etc of un-verified weights and measures

Fine upto Rs.10,000. In case of second or subsequent offence, imprisonment upto seven years and also fine.

n

Applicable to every retail establishment employing 20 or more employees.

Sale etc. of packaged goods not conforming to provisions of sec. 39

Fine upto Rs.5,000. In case of second or subsequent offence, imprisonment upto five years and also fine.

n

Retailer has to pay contributions on or before 15th of every month.

n

Contravention of any other provision of the act

Fine upto Rs.2,000

Compulsory to pay contribution in respect of employees earning less than Rs.6,500 per month including basic salary and dearness allowance.

n

Forms required to be maintained/submitted:

Main provisions:

jurisdiction the retailer's establishment is situated.

A. Declaration of all the employees (Form No. 2)

Every application for registration of a trademark shall bear a representation of the mark in the specified place provided in the form. Ten additional representations of the mark have to be submitted along with the application.

B. Employees qualifying for membership of the fund etc. (Form No.5 and 10)

n

After the acceptance of the application, the application has to be advertised in the Trademarks Journal.

n

Registration of the trademark shall be valid for a period of seven years, but it may be renewed from time to time.

C. Consolidated annual contribution statement (Form No. 6A and 3A) D. Inspection book

The Employees' States Insurance Act, 1948 n

Applicable to establishments employing 10 or more employees earning salaries less than Rs.6,500 per month.

n

Contributions should be remitted on or before the twentyfirst of every month.

n

Records to be maintained: A. Declaration of all employees with post card-sized family photos (two copies)on Form No.1

PRESCRIBED FEE STRUCTURE No of Employees

Fee Prescribed

Nil

Rs. 10.00

Does not exceed 5

Rs. 50.00

Exceeds 5 but does not exceed 10

Rs. 100.00

Does not exceed 20

Rs. 200.00

Exceeds 20 but does not exceed 30

Rs. 300.00

Exceeds 30 but does not exceed 50

Rs. 500.00

Exceeds 50 and but does not exceed 100

Rs. 1,000.00

101 and above

Rs. 2000.00 87

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MALL DEVELOPMENT: A PROCESS STUDY

The Contract Labour (Regulation and Abolition) Act, 1970 The Act requires the retailer to be registered as a principal employer. All part time/contract employees are eligible for Provident Fund and Employees' State Insurance benefits. The provisions of the Contract Labour (Regulation and Abolition) (Karnataka) Rules, 1974, requires every principle employer to maintain in respect of each establishment a register of contractors as specified in Form XII. The contractor too has to maintain in respect of each registered establishment a register of workmen employed in Form XIII. Other registers to be maintained under the Karnataka rules are as follows: n

Notice of opening by principal employer - Form No. XXVI

n

Employment Card

n

Notice of Commencement of Work by Contractor to be issued within 15 days of Commencement of Work to Assistant Labour Commissioner - Form VI-A

n

Register of Wages - Form No. XVII

n

Wage Slip - Form No. XIX

n

Service Certificate - Form No. XV

n

Register of Deduction - Form No. XX

n

Muster Roll - Form No. XVI

n

Register of Fines - Form No. XXI

n

Register of Advance - Form No. XXII

n

Register of O. T - Form No. XXIII

Other Central Regulations/Acts Besides, the retailers also have to comply with the provisions relating to The Income Tax Act, 1961, The Customs Act 1962, and the rules and guidelines that are issued there under from time to time. Under the Income Tax Act, the retailers are subject to taxation on the income earned in accordance with the rates of taxes as specified in the Finance Acts. In case, the retailers stocks imported merchandise, it has to comply with the provisions of the Customs Act, 1962 with regard to payment of duties as per the rates prevailing at the time. Further, retailers also has to comply with the provisions of the Companies Act, 1956, Foreign Exchange Management Act, 1999 and various other statutes and legislations from time-to-time.

Legal & Regulatory Aspects Relating To Real Estate Market The real estate market in India is still at an infancy level, characterised by a large number of small players. The last few years saw the emergence of big players and the entry of corporate houses in the real estate domain. In most of the states of India, development authorities control supply of urban land. This sector is still in the grip of certain restrictive legislations thus limiting investment and proper organization of the sector. 88

MALL DEVELOPMENT: A PROCESS STUDY

SEC III CHAPTER 1

The laws governing real estate in India are over a century old. Though quite a few of these regulations form the basis of laws and necessary amendments are happening in the space, still the current legislative framework is in need of a major overhaul to make the laws and regulations more relevant to present day requirements. A number of Central and State laws govern the real estate sector in India. The more prominent of these are listed below:

Central Laws Governing Real Estate The Central Acts and laws that form the basis of future laws and provides the foundation are as follows: n

The Indian Contract Act, 1872

n

The Transfer of Property Act,1882

n

The Registration Act,1908

n

The Specific Relief Act, 1963

n

The Land Acquisition Act,1894

n

The Indian Evidence Act,1872

n

The Land Reforms Act,1964

n

The Stamp Act,1956

n

The Urban Land (Ceiling & Regulation) Act, 1976

n

The Urban Land (Ceiling and Regulation) Repeal Act, 1999

Besides, the above-mentioned legislations, a number of other related laws also regulate the real estate market in India. There are also certain enactments that may in

As such the real estate sector in the country comes within the purview of various related Acts and Regulations. Recently, a number of Acts have been enacted which bring the real estate sector within its purview – such as The Consumer Protection Act, 1986, and The Environment Protection Act, 1986. one way or another affect real estate transactions. As such, the real estate sector in the country comes within the purview of various related Acts and Regulations. Recently, a number of Acts have been enacted with certain provisions or definitions bringing real estate within its purview – such The Consumer Protection Act, 1986, and The Environment Protection Act, 1986. Again, certain amendments in existing laws or repeal of Acts have also brought about certain relaxations and boosted the growth of the sector. An example that can be cited in this case is that of The Urban Land (Ceiling and Regulation) Repeal Act, 1999. But quite a few state governments are yet to adopted the The Urban Land Repeal Act, such as Andhra Pradesh in South India. The real estate sector is also faced with other issues – such as taxes, monopoly of urban land, titles and records of evidence, land reforms, municipal laws and zoning laws – that impediment growth. Lengthy compliance procedures and non-transparent transactions too have hindered prospects. The sector is in currently in need of redressal of issues relating to various aspects – be it legislative or policy reforms.

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MALL DEVELOPMENT: A PROCESS STUDY

CHAPTER II ANCHORS IN MALLS

Landmark, Mumbai

SECTION III

ANCHORS IN MALLS BY ANSHUMAN MAGAZINE > Managing Director, CB Richard Ellis South Asia

I

ndia has experienced a rapid rise in organised retail in the last 10 years, evolving from a country with neighbourhood (kirana) stores to having its metros dotted with glitzy showcase 'Malls'. From a time in early 1990s when a 15,000 sq.ft store left many skeptical about its survival to a time when a million square feet mall with several large stores draws merely a passing look, India has come a long way. Driven by changing lifestyles, strong income growth, improved quality consciousness and favourable demographic patterns, Indian retail is expanding at a rapid pace, leading foreign and domestic retail brands to expand/register their presence in India. For these retailers/brands the fastest way to list their presence in the consumer mind is to be in a 'mall', in a big way. 94

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Haldiram's Kolkata

Shoppers' Stop, Mumbai

SECTION III

most cases anchors occupy between 40 and 60 percent of the space in a mall. In physical configuration, typically anchor tenants (if there is more than one in a mall) are located as far as possible from one another to maximise the amount of traffic from one to another, benefiting the smaller tenants.

HOW ARE ANCHORS SELECTED? Many of these retailers/brands have arrived in India or have expanded their footprint as anchor presence in various malls. In most malls, these anchors are the drivers of foot fall and act as magnets for consumers to come and other stores to locate in the mall. How are anchors selected? Is it a self-selection process by the retailers/brands or is it a result of the desire of mall developers to position their asset, or is it the presence of target consumers?

TYPE OF ANCHORS India has come a long way in its retail journey, and so has the nature of anchors in its malls. A decade ago, one would never have imagined a hotel or an F&B chain to act as an anchor in a retail development. These days, a hypermarket, a department store, a lifestyle store, a hotel, a multiplex, a food court, a family entertainment centre, and a health club can independently or together act as anchors. However, the concept of an anchor is still evolving in India. We are yet to see an IKEA, or a Carrefour. But we are not far behind.

It is in reality a combination of choices made by the retailers, the developers and the consumers. In many instances, multi-brand retail companies enter into strategic tie ups with developers who roll out a long term plan to develop malls in various cities. In each of these future malls, a brand(s) of these companies will act as anchor(s). In general, such tie ups occur between large developers with pan-India presence and large companies with multi-brand presence in the retail segment.

CONCLUSION Emerging markets are attracting major brands from across the world and India, being a leader, is not immune to the phenomenon. Retailers in India are most aggressive in Asia in expanding their businesses. Their preferred means of expansion is to increase the number of outlets in a city, and also expand to other regions.

On other occasions, a mall developer may desire to position an asset towards a particular tenant mix. The selection of an anchor tenant(s) for such an asset will be in accordance to the desired positioning and the presence of a target catchments population. In such cases we may witness a particular brand/store as an anchor or a bevy of brands belonging to the same stable acting as anchors.

As India ties itself inextricably to the global market, the forms and formats of global retail are likely to make their imprint on India in the future. Moreover, with the expected opening up FDI in multi-brand retailing, the interest of foreign retailers would be more focused on India. The franchise and cash and carry route would give way to direct participation by retailers increasing the nature and scope of future anchors.

In other instances, an anchor may wish to be present in a mall by virtue of its location and the catchments area.

THE PROCESS Typically, an anchor enters as a tenant at a design board stage and consequently receives a number of discounts from the mall developer. An anchor typically pays 30-50 percent discounted rentals, receives higher floor efficiency than other smaller tenants, enjoys landlord improvements (viz., improved interiors, escalators within the store, dedicated service elevators, commercial signage, and special area for advertisements and promotions).

Future malls would be larger, with more anchor tenants, which will mean that less and less malls would cater to niche segments. Malls would be catering to the general population and less at targeted clients. We would expect to see more 'Power Centres', 'Regional Destination Malls' and 'Discount Malls' in the future, replicating the western format. Would our children be able to shop in a Plaza with an IKEA, a CostCo, a Wal-Mart Super Mart and hundreds of other smaller stores in 2020? Maybe…

More often, as an anchor, it drives the design of the mall and in 95

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SRS Mall, Delhi NCR

SECTION III

CASE STUDY: THE MULTIPLEX STORY

F

or once, the business of entertainment retail and the entrepreneurial skills behind Indian showbiz has become just as exciting as thriller movie plots and onscreen histrionic talents. There are as many mushrooming multiplexes as there are malls – and more are joining the brigade with old-style single-screen theatres being converted into three and four-screen cineplexes by big movie exhibition retail chains. What's more, the retail boom has even managed to affect the movie-making industry by engendering a whole new breed of 'multiplex cinemas' that urban Indian audiences are lapping up.

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there has been a growth in almost all segments of leisure and entertainment. According to IMAGES F&R Research estimates based on CSO National Accounts Statistics 2006 (Statement14), consumer spend on leisure and entertainment grew 24.2 percent in 2004-05 over the previous financial year spend of Rs.29,360 crore. The total entertainment retail market in India is currently estimated at Rs.35,000 crore, out of which the share of the organised segment is just about four percent – at Rs.1,450 crore. Currently this organised segment has seen a growth of 14.3 per cent over last year, with a year-on-year growth of over 44 per cent in the last two years. The Indian entertainment industry is further expected to grow to more than Rs.58,800 crore by 2010. The multiplex industry, for its part, is expected to grow at over 44 percent a year to about Rs.90 crore by 2008, while the Indian film industry (currently worth about Rs.8,000 crore or US$ 2 billion) is expected to grow to Rs.17,400 crore (US$4.3 billion) by 2011.

That movies are the biggest entertainment avenue for India's billions is a no-brainer. And that the best development to have happened to the Indian entertainment business in years has been the growth of multiplexes is also a known fact. But having said that it also remains a fact that in India, there are only 12 screens per 10 lakh population compared to 117 screens per 10 lakh in the US and more than 40 screens for European nations. The multiplex business is clearly a fledgling industry at the moment with huge potential.

The Indian film industry continues to be the largest in the world in terms of the number of films produced. The encouraging growth in the number of multiplexes has also enabled moviegoers, especially in urban India, to add a new dimension to their movie viewing experience. However, the overall number of screens in the country remained approximately the same since multiplexes have only managed to compensate for the closure of several single screen theatres across the country.

LEISURE & ENTERTAINMENT MARKET SIZE Riding the economic growth and rising affluence levels that India has been witnessing in the last few years, the Indian entertainment industry has been growing at a rapid pace. From books and music to gifts and movies,

Growth of Entertainment segment (Value Rs.Crore at 2003-04 prices) 32800

35000

1700

28700

30000

1500

25000 25000

1350

1300

20000 1100 15000

950

900

10000 5000

700

650

0 Year 2004

500 2005 Total segment

97

2006 Organised segment

Organi sed si ze i n Rs. C rore

But what is interesting to note at this stage is that even though multiplex space supply is almost at par with retail space supply, the cinema exhibition business is only about a fifth of the total retail business in India. This is an indicator of the fact that either multiplexes at present are in excess of the expected market size, or that multiplex business needs to explore virgin territories other than that of the over-supplied metros.

Tota l segment si ze i n Rs. crore

With the increasing acceptance of organised retailing in urban India, there has been a growing demand for quality retail space from large F&G retailers, fashion apparel chains as well as from multiplex operators. As a result, multiplex growth in the country has been proportional to mall growth. According to IMAGES F&R Research, currently India has about 200 operational malls, which is expected to rise to 600 by 2010-11. Within the next three years, therefore, the number of movie exhibition screens, seats and audience capacity are also expected to grow simultaneously.

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Adlabs Cinemas

CHAPTER II ANCHORS IN MALLS

converted into a three-screen multiplex, will now spread across India's fast growing, prosperous small towns. Adlabs plans to come up with an investment of about Rs.100 crore in Chhattisgarh, for instance, to develop four-screen multiplexes at Raipur, Bhilai, Bilaspur, Korba, Raigarh, Ambikapur and Rajnandgaon.

Adlabs Cinemas, owned by the Anil Dhirubhai Ambani Group (ADAG), was launched in 2000 with the opening of the world's largest IMAX dome theatre and a four-screen multiplex in Wadala, Mumbai. Adlabs operated four multiplexes (three in Mumbai and one in Nasik), with a total of 12 screens and an audience capacity is 4,385 seats in 2005-06. Revenues stood at Rs.34 crore in the last fiscal, with an average transaction value of Rs.130.

ADAG's ultimate grand plan is to utilise Reliance Infocomm's existing fibre optic network to digitally screen movies from a central location across Adlabs Cinemas' vast movie hall network. This strategy might also help in bringing down current multiplex ticket prices – at least in small town India. At its

Today Adlabs Cinemas operates approximately 80 screens across India. The company is currently on a massive tie-up operation with multiplexes and single-screen cinema halls, as well as greenfield sites across the country, especially in Gujarat. Currently some 350-odd acquisitions, long term leases and management contracts (with single-screen theatres) have been targeted in the first phase of expansions. Most of these new alliances are in tier-II cities like Indore, Meerut, Allahabad and Belgaum.

ADAG's ultimate grand plan is to utilise Reliance Infocomm's existing fibre optic network to digitally screen movies from a central location across Adlabs Cinemas' vast movie hall network. This strategy might also help in bringing down current multiplex ticket prices – at least in small town India.

Around 700 movie halls will be targeted over the next few years, most of which will be converted either into multiplexes or into prime single-screen destinations like the company's Metro Adlabs in Mumbai. What started with the Mehul Theatre in Jamnagar, Gujarat (an Anil Ambani stronghold), which was

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CHAPTER II ANCHORS IN MALLS

Recent Progress in Global D-cinema Systems • The agreement by major Hollywood studios on a single digital standard for world-wide distribution

The company eventually plans to create a franchisee model for theatres in tier-II and III locations, where existing theatre owners will manage the theatres under PSTL's branding, with a minimum assured quality. PSTL will manage the entire content, without any fixed cost exposure. By 2012, PSTL plans to operate 2,000 screens in India.

• The development of business models that appropriately share the cost between the studios and the exhibitors according to the benefits each derive from the process • The availability of systems that can deliver picture quality, reliability and security standards better than 35 mm film.

PVR Cinemas Ltd Credited with spearheading the multiplex revolution in the country in 1997, PVR Cinemas Ltd has now established more than 82 screens at 21 complexes. The total audience capacity of PVR is 21,316 seats at present. PVR was the first movie exhibition company to introduce computerised ticketing. It was also the first to accept credit cards in India for the purchase of movie tickets; the first to offer cinema tickets over the internet with an online payment gateway; as well as the first to receive institutional funding in the cinema industry – from ICICI Venture. It has currently entered into a joint venture with Ram Gopal Verma's K Sera Sera for distribution rights of movies in select cities.

current rate of expansion and acquisitions, Adlabs Cinemas will easily emerge as the largest player in the organised entertainment retail segment in India. Pyramid Saimira Theatre Ltd Pyramid Saimira Theatre Ltd (PSTL) is a movie theatre chain with a presence in malls, multiplexes and standalone theatres. PSTL has been acquiring theatres on long-term lease or on ownership basis. The operations of the company are centred in South India, with a retail presence in cities like Chennai, Madurai, Salem and Tirunelveli. The chain currently operates 325. The company plans to tie-up with 120 single-screen theatres in metros and 235 theatres in tier-II and III cities. PSTL has already tied-up with existing movie halls and malls in Punjab, Himachal Pradesh, Haryana and Rajasthan, for conversion into digital-friendly theatre formats.

PVR Cinemas Ltd has recently forayed into the distribution of Hollywood film titles through its subsidiary, PVR Pictures. PVR has also gone for a new brand, PVR Talkies, for its presence in tier-II and III locations. The company plans to operate 208 screens in five years' time. Fun Multiplex Pvt Ltd Fun Multiplex Pvt Ltd, part of E-City Ventures, is represented in the multiplex industry by its Fun Republic and Fun Junction formats, apart from leased theatres. The company currently operates 95 screens across 25 cineplexes in 10 cities (Ahmedabad, Mumbai, Chandigarh, Delhi, Ghaziabad, Jaipur,

Unlike Reliance, PSTL is involved in setting up an integrated Network Operating Center (NOC) which will convert 35 mm films into digital or d-cinema, and transmit these films via a satellite medium to various theatres across India in a secured encryption mode.

Multiplex Players Operator ADLABS CINEMAS CINEMAX DT CINEMAS E-CITY VENTURES INOX LEISURE LTD M2K CINEMAS PVR LTD PRASAD IMAX PYRAMID SAIMIRA SHRINGAR WAVES CINEMAS 99

Multiplexes

Current Screens

Seats

Projection in 5 years (screens)

22 11 3 25 15 2 21 2 290 7 3

80 36 6 95 54 5 82 5 325 30 13

NA 10,366 1,800

225 141 NA 1,500 165 NA 208 NA 2,000 235 200

12, 818

16,700 NA 21,316 2,190 2,25,000 9,051 4,350

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the chain of Fame Cinemas, the company gave Mumbai its first five-screen multiplex and its first IMAX theatre. It today has a total of 30 screens in seven complexes. By 2009 the chain targets a sprawling presence with approximately 52,000 seats. M2K Cinemas M2K Cinemas from the M2K Group initially started off with a multiplex at Rohini, Delhi. Its second outlet was also at Delhi's Pitampura area. At present M2K Cinemas operates five screens at two multiplexes. The company plans to add 500 multiplexes by 2010. UFO Movies Digital Cinema Solutions UFO Movies Digital Cinema Solutions is a global end-to-end Digital Cinema System equipped with advanced features such as real time satellite delivery, Smart Card-based licensing and high-end management information systems. UFO Movies delivers digitally mastered, high-quality movie images through satellite directly to cinema halls. At the recently concluded IIFA awards in the UK, UFO Movies received the 'Innovation in Indian Cinema Award'. The largest digital cinema chain in the world, it has plans to digitise 2,000 screens by FY 2007-08. At present UFO Movies has digitised more than 750 screens in India and has plans of digitising many more.

Agra, Lucknow, Panipat and Gulbarga). Fun Multiplex plans on running a total of 150 screens by end2008, with plans of operating another 300 screens by FY 2011 across 23 cities in India. The company also aims to bring 1,500 cinema screens under its fold by 2011 (including digital, single screen refurbishments as well as multiplex formats).

D-CINEMA: THE NEW TECHNOLOGY Digital cinema, or d-cinema, involves the production, delivery and projection of feature films, trailers, advertisements and other audio/visual programmes to theatres, using digital

INOX Leisure Ltd INOX Leisure Ltd is the entertainment venture of the INOX Group, a subsidiary of Gujarat Flurochemicals Ltd. INOX pioneered the concept of regional film screening in India; while INOX, Pune, was the first multiplex in the country to introduce the concept of a Preview Club.

PVR Cinemas, Mulund, Mumbai

The multiplex chain is currently running 54 screens at 15 multiplexes in India. The multiplex chain has a total audience capacity of 16,700 seats at present, and plans to operate 165 screens by 2012. Its merger with CCPL (89 Cinemas) has given INOX access to an additional eight multiplexes in West Bengal and Assam. Shringar Films Pvt Ltd Shringar Films Pvt Ltd was founded in 1975, with the distribution of Bollywood films as the company's core area of operation. Operating 100

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because in the same ratio the distributor's shares go up (probably the producer's too).

Cinemax, Nashik

Worldwide digital cinema is considered to be the next big thing in the entertainment revolution. Currently this format is at an evolutionary stage, and once it stabilises, the digital cinema distribution may be expected to be on the way forward. It offers several benefits to the producers and exhibitors such as control over piracy, the biggest threat to the entertainment industry. It also offers ease of software distribution by providing digital content to any part of the country through satellite or otherwise. technology. The d-cinema system uses a 'store-andforward' model to distribute cinema that has been digitised, compressed, encrypted and delivered to theatres using either physical media distribution or through electronic transmission methods (such as satellite or fibre-optic cables). Cinemax Red Lounge, Eternity Mall, Thane

The number of screens around the world capable of digitally projecting movies is more than 4,000 at present; and according to industry forecasts, there will be more than 17,000 d-cinema screens in the world by 2010. Right now North America is the leading region for dcinema screens, followed by Asia and Europe. Some of the major advantages of d-cinema over 35 mm prints include: • Elimination of print costs and hence, widespread release of all movies at no extra cost • End-to-end protection of content against all forms of piracy with encryption technology

RETAIL BOOM TRANSFORMING ENTERTAINMENT A recent ACNielsen study conducted to analyse the entertainment consumption pattern in India showed that multiplexes are clearly a SEC A hub, with a high student patronage. The study also revealed that 60 percent of mall (and multiplex) visitors owned plastic money, while 81 percent visited malls to watch movies. Other industry studies have also shown that malls and multiplexes are mutually beneficial to each other. While the average Indian consumer's movie mania, coupled with star visits and movie campaigns benefit malls with footfalls, brand promotion campaigns at malls, food court and supermarket retailers also attract footfalls that ensure quality viewer back-up for the anchor multiplex in a mall.

• Good AV quality at every run of the movie It is felt that digital cinema is very probably the panacea for all the ills faced by the film industry, such as low revenues, piracy, logistics, picture and sound quality. In India, however, movie exhibition companies have begun their own Made-in-India experiments. E-City Entertainment, for instance, uses a model that combines the use of the 35 mm prints as well as digital programming. The E-City digital business model takes theatres on lease or revenue sharing. The company is also into a commission structure or service fee structure for theatre owners, and eventually leads to retrofitting which is where value addition takes place for theatre owners. The cinema exhibition company has targeted centres with collections greater than Rs.1 lakh/week on an average. And later when these single screen theatres are converted into a three-screen multiplex, the average collection per month raises from the current Rs.4 lakh to Rs.12 lakh. This actually delivers value to the distributor,

Mall management is critical for the success of mall multiplexes since most multiplexes are located on the top-most floor; and a mall consumer's retail experience starts at arrival. While standalone multiplexes are more in control of their audience's experience, on the other hand additional facilities and services at malls entice customers to visit multiplexes. Does this spell death for single screens? It is true that mall 101

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PVR ticket counter at MGF Metropolitan Mall, Gurgaon

hardly have any other entertainment options, these chains hold huge retail potentials at these locations. Many in the industry feel that small towns with their share of box office collections will soon drive the film exhibition space. Currently about 65 percent of total box office collections in India come from tier-II and III centres, with indications that this figure will soon rise to as high as 70 percent by 2012. Transforming Creativity The rise in multiplexes has also provided a fillip to low budget and experimental films – now termed as 'multiplex' films – that are released in these smaller sized auditoriums and have their own niche audiences among India's urban movie-goers. So much so that the new 'multiplex' form of the movie business has changed movie scripts, production, budgets, distribution practices and film promos too.

multiplexes score over standalone entities, because of their food courts, multi-cuisine restaurants, quick-buy counters and gaming zones that provide quality family entertainment. Moreover, once digitisation becomes the industry norm, exhibitors will have to shift to modern exhibition formats. But for the moment it would do the industry good to keep in mind the fact that multiplexes constitute just about one percent of the country's total number of cinema halls, and four to five percent of the total screen space.

Independent and experimental filmmakers agree that their kind of cinema would never have had a chance of being screened at the larger, 1,000-seater single-screens of yore. But for multiplexes with their higher-priced tickets and smaller capacities, movies like Mr and Mrs Iyer, Bheja Fry, Life in a Metro, etc. would never have seen the light of day ten years ago. Multiplexes help ensure a faster ROI for producers, besides the larger choices and quick turnarounds have also helped in an increased film output.

Industry experts believe that the multiplex industry in India is currently at an inflection point. Movie watching is the most popular entertainment option for Indians and India boasts of the largest film industry in the world. Yet, out of 12,000 screens in India, only 300-odd are currently operated by multiplexes.

INDUSTRY CHALLENGES

Government encouragement to multiplex operators in the form of entertainment tax exemption has also given a fillip to the multiplex industry. Keeping all these in mind, the multiplex market may be expected to continue to grow rapidly in India, with multiplex screens growing to around 2,000 screens in the next five years.

The modern cinema exhibition business is an infrastructure business and requires huge investments. Apart from real estate costs and taxes, high-end cinema screening equipment are not manufactured in India. What is, therefore, required is a reduction in customs duty and a tax holiday, especially for the digital cinema industry, along the same lines granted to the multiplex industry. Although this year's Budget brought down the duty on digital cinema equipment, the levying of additional customs duty and countervailing duty has almost nullified the impact.

Moving into Tier-II Locations Having begun to experience over-supply in urban areas, cinema exhibition companies are beginning to venture beyond metros into tier-II and III cities and towns, such as Lucknow, Indore, Nasik, Aurangabad, Kanpur and Amritsar to name a few.

Ticket Pricing

Major multiplex players like PVR Cinemas, Adlabs Cinemas, Inox Leisures, Shringar Cinemas, Fun Multiplex and Pyramid Saimira have arrived at small towns like Darjeeling, Pimpri, Latur, Agra and Visakhapatnam. Given that India's small towns

In small towns too the retail boom has been driving the multiplex industry. Across India multiplexes occupy the top floor of malls as the anchor tenant, ensuring footfalls. But the similarity stops there, since multiplexes are forced by the 102

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Ticket counter at a PVR Talkies outlet

SECTION III

economic profiles of such locations to cut costs in the form of no-frills exhibition spaces, and of course lower ticket prices too – PVR Talkies being a case in point.

the industry needs to look at locations beyond the top 20-30 cities. There is potential to locate multiplexes in about 700 locations in India at present, with an unfragmented core catchment of about five lakh people. Typically most multiplexes today are located in at high-end spaces. So once rentals go up, CAM charges escalate and the industry's tax holiday comes to an end – the business will be forced to do a re-think.

Not only tickets, but F&B costs are also lower in small town India. While the F&B costs in metros fetch 20-25 percent of the revenue, it is 15-20 percent in non-metros. Since F&B margins of multiplex operators are as high as 60-65 percent, lower revenues from that segment delays the business from breaking even in tier-II and III towns and cities.

Right now, despite mercurial real estate costs, the industry has not really been affected because most multiplex owners have already tied-up with developers for at least the next couple of years; and being anchor tenants, they end up getting special rates too.

Location, location, location There is a clear indication, as mentioned earlier, of an oversupply of multiplexes in metropilitan centres. Gurgaon's famed 'Mall Mile' being just such a case in point. Multiplexes are largely a weekend-driven business and excess capacities could mean cannibalisation within the industry, leading to as low as 30 percent occupancy at multiplex auditoria.

The important point to keep in focus, however, is that singlescreen theatres remain the choice of the majority in semiurban and rural India. The lower economic segment of urban India too prefers the ticket prices of single-screens to the overpriced multiplex ones.

There is a need to venture into smaller markets therefore; and

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Bangalore Central

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BUILDING A MALL AS A BRAND BY PANDRANG ROW > Partner & Chief Brand Communication Officer, Vertebrand Management Consulting

I

n Field of Dreams, Kevin Costner's character, an impoverished farmer, is pushed by some supernatural force to build a baseball diamond in the middle of his fields. Despite the fact that his farm is in the middle of nowhere, a voice tells him, “Build it and they will come.” At the end of the movie we see a long queue of cars approaching the field. Most mall builders today seem to have that same somewhat untenable belief, “Build it and they will come.” The scenario is predictable: a builder finds a nice plot of land near a good neighborhood, a college or some 'electronic city' and assumes that the location is perfect for a mall. The conviction is based almost entirely on gut feel and a vague idea that there are lots of youngsters from colleges/BPOs/IT companies in the area who are 104

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So all around your mall are five others all of which are all things to all people.

Crossword, Kolkata

And you'll find you've built it, but . . . they're not coming.

A mall brand is actually an experience. Every time a consumer walks into the mall her visit reinforces and strengthens the brand – and everything about the mall affects that experience; the shops, the ambience, the parking availability, the loudspeaker system, the movies, the food court . . . everything.

And there's a reason for that. Your mall is not a brand. BRANDING A MALL Building a mall brand cannot begin after you've found some land and built a swank,

steel, concrete and glass structure. It must begin well before that. To begin with you must accept one immutable fact: a mall is not a building it is a product. And a product will never be accepted or purchased by a customer regularly unless and until it's a brand. What is a brand? It's the most valuable piece of real estate in the world: a part of your consumer's mind. To amplify on that: a brand is that portion of a person's mind, which justifies using a product repeatedly, paying a premium for it and attributing to it qualities over and above those of another product in the same category.

generally 'well-paid' and will therefore have cash to spend. There are certain set architectural patterns for all malls, generally from the USA, so a developer only has to choose one and then the engineering team gets on the job. Then, within a reasonable amount of time a steel and concrete monolith rises.

How Can a Mall Become a Brand? A mall has several qualities that make it different from any other brand. To begin with it is an immovable product, but it is also a highly perishable product. So, if you have no visitors on a day, the day's dead and gone.

Simultaneously, the developer's marketing team is on the job. So offers are sent for space to the usual suspects: Nike, Levis, Reebok, McDonald's, Subway, Westside, Shoppers Stop, Barista . . . And before long a mall opens. It will have a beautifully decorated foyer in glass and marble, many glittering stores, with the smells of various delicious foods floating through the air.

Further, a mall brand is actually an experience. Every time a consumer walks into the mall her visit reinforces and strengthens the brand – and everything about the mall affects that experience; the shops, the ambience, the parking availability, the loudspeaker system, the movies, the food court . . . everything.

It will be a mall that's all things to all people, so it can be expected to pull in the crowds and generate revenues for all the mall's tenants.

In short, a mall as a product and a brand is the sum of many, many parts.

Unfortunately, there are five builders all of whom have had the same idea and have bought property in the vicinity. So there are five malls clustered around a small locality. All the malls have the same or similar brands one may have Reebok, the other Nike – all the malls have a food court.

You may have well-trained personnel manning the enquiry counters and the security at your mall. However, if the sales people in one of the shops in your mall 105

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Do you want a movie theatre in your mall at all? (See the box for the dangers of movie theatres).

are less than polite, your entire mall brand gets affected. Everything has to work in a mall – the air-conditioning, the food court, the escalators, the elevators, the parking arrangements, the public address system, even the stocking pattern in the stores . . . everything.

You might find that a great location for highly prestigious mall brand might not be able to attract any customers for a middlemarket mall brand.

And a mall brand has to work from day one because the financial clock starts ticking then.

In sum, you have to identify your mall brand's value propositions.

To make that happen you must treat it the way you would do any brand.

Identifying Your Mall's Value Propositions There are decisions that need to be taken. Will your mall brand have a functional proposition? Will it be the place to go to for cheaper stuff, more expensive stuff, sports equipment, food or diamonds and gold? Will it possess an emotional value proposition? Will visiting your mall make people feel warmer, happier, more practical, more sensible, more sophisticated or more down-to-earth?

Shipra Mall, Delhi NCR

Will it have a self-expressive proposition? Will I become a THE HIDDEN DANGERS OF MOVIE THEATRES A small research conducted by some management students on the behalf of Vertebrand revealed that the average expenditure at premium mall in Bangalore was only Rs.200. This meant that most people came to watch a movie and possibly grab a bite at the food court. A good percentage just came to hang out and only a small percentage actually went and shopped at the expensive stores in the mall.

DESIGNING A MALL BRAND The first step would be to identify your customers and your catchment area. What kind of people do you think the mall should attract? And where are they going to be coming from?

A movie theatre may be a good way to attract crowds to a mall, but it is also a hugely dangerous feature.

Once you've made sure of the catchment area around your mall and identified your target customers, the next step is to design your brand that will attract those customers to your mall in preference to any others.

If you have a movie theatre in your mall, people come to there and occupy your parking area for two or three hours at a time, generating no revenue for your tenants. In fact, they are creating no revenue for the mall beyond the Rs.250 for the movie tickets and the Rs.50 parking fee.

It's all about decisions that can only come from understanding your consumers. Do your preferred customers like large, expansive, impersonal public spaces? Or small, intimate, personalised areas?

Rs.300 for three hours spent at the mall devastating.

Are they the 'Marks & Spencer' type? Or the 'Shoppers' Stop' type? Or the 'Big Bazaar' type?

Further, moviegoers will prevent possible shoppers from coming into your mall. It must be remembered that there is generally no parking in the neighborhoods around a mall and if all your parking is occupied by moviegoers, shoppers the revenue generators will not be able to come even if they wanted to.

What will they do once they come to the mall? Hang out? Hang out and then watch a movie? Hang out, watch a movie and then go to the food court?

So the question you need to answer is, should you have a few, high-revenue customers or many low or no-revenue customers?

Are they gourmets? Gourmands? Or greedy? Do they have cars? Motorcycles? Or do they use public transport?

Hang out and shop? 106

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smarter person, a more discriminating person, a more knowledgeable person or a more sensible person by visiting the mall?

chrome and glass? Should the décor include beanbags and balloons? Or should it consist of champagne glasses and leather armchairs?

These are all decisions that must be taken. In short, you must first design your brand.

Then, because every experience of the brand will communicate its values, you need to make sure the building is, in turn, populated by brands that communicate the right message by their very existence.

WHAT COMES NEXT It is only once the brand decisions are made that you should brief your architect, your interior designer and the landscape people. Now the design of the mall will be focused; now the building – a product – can be designed in a way that is consonant with your brand's values and your customers' aspirations and needs.

You cannot have a McDonald's cheek-and-jowl with Omega, Rolex, Dior and Rolls-Royce . . . not because you physically cannot, but because brand logic goes against the idea.

So, now that you know what kind of target audience you're targeting, you can tell your architect how you want your mall designed. For example you may want a drive-in portico so that a customer can either be dropped off by her chauffeur, or leave her car for valet parking. Alternatively you may want a place where youngsters are comfortable, so you'll have more place for parking two-wheelers.

Undoubtedly, once the brand managers see what kind of mall brand you are trying to create, they will be able to decide whether or not they want to be in your mall. And if you've created an appropriate brand which will match the target audience and catchment area of your mall, you won't need to hunt for brands they will instantly see the relevance of being in your mall.

Then, when your customer enters, what will she see? Again, your brand identity dictates that.

Bringing People Into Your Mall

You cannot have a Cartier in a mall that's targeting parents with children.

With any brand and particularly a mall brand, even if you've been careful to build it to match your target audience and peopled it with stores that bolster the imagery that will appeal

Should your customers be greeted by wood and plush carpeting? Should they step into an atmosphere of gleaming 107

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Hyderabad Central

What you would do to attract the crowds would depend on the kind of crowd you plan to attract. One target audience might demand a grand magic show by some high-end magician who makes the entire mall disappear and re-appear. Another group of people might be more entertained by a very sophisticated cocktail party held on the construction site. Yet another class of society might be sophisticated enough to warrant staging a Shakespearean play in the atrium. Another group might only be enthused by a group of VJs from Channel V or MTV while another group might merit a fashion show and so on. Marketing Existing Malls

to your target audience, the 'build it and they will come' philosophy does not work. You still need to publicise the brand.

Of course malls that have already been built still require marketing support. And the process is more or less the same. Cosmos Mall, Bangalore

Too often a large hoarding stating that a mall is coming up behind it is thought to be sufficient, when in fact, it is not. If the mall is targeted at a particular target audience, there is obviously a good reason to address that audience with carefully designed marketing activities.

First, identify your catchment area and therefore your target audience. Then figure out what kind of value proposition your mall brand can offer them. Finally, publicise that value proposition.

The activities you would use to publicise the value proposition would naturally be quite different. However, the same principles would apply. However it's important to understand that the promotional activities undertaken inside the mall should be calculated to add depth and dimension to the mall brand – not merely to the brand advertised.

When a new casino is being built in Las Vegas – where every casino is a brand – high-rollers and high-end customers are kept informed throughout the process. They are given sneak previews, they are invited for events when the casino is still a building site, multi-media presentations are handed out and lavish brochures and mailers are created before the casino is even built. This goes on until the point when everybody is dying for an invitation to the exclusive soft launch.

For example, one mall in Bangalore consistently has promotional activities in the atrium. These activities involve loud amplified voices, dancing, consumer contests, bad singing and huge crowds watching on every floor.

Most of all, the casino is hyped as the most lavish, the most extravagant, the most incredible casino in Las Vegas – at least until the next one comes up.

The question is, does the mall want to be seen as a constant, unrelenting mela? Does the mela help the stores in the same mall to sell product? Has anybody analysed whether these promotional activities actually help the rent-paying tenants of the mall?

The idea is the same one every mall owner must have – to have a crowd walk n on the first day. Even if it is just to see what the hype was all about.

A good customer retention and management campaign for the mall could be part of its activities. A mall's parking attendants could hand out membership invitations to anybody who uses a bill to defray her parking ticket – that way you know you're developing a relationship with a person who has spent a reasonably large sum of money in your mall.

For a mall, pretty much the same process would be ideal. Prelaunch hype followed by an exclusive soft launch to which everybody is dying to be invited and finally the grand launch itself.

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MALL MANAGEMENT

SECTION IV MALL MANAGEMENT

GOOD MANAGEMENT STARTS AT THE TOP BY ALAN A ALEXANDER > Presient > Alexander Consultants Arizona, USA

T

here is a lot of discussion in the shopping centre industry as to the duties and obligations of the effective shopping centre manager. However, in order for the manager to be effective, the shopping centre owner has to set the table with a well developed and leased shopping centre, state of the art facilities, clearly stated goals, and clear policies and procedures to provide the proper environment. The management demands of a shopping centre are substantially beyond those of an office building or an apartment complex. These responsibilities are best handled by a professional shopping centre manager; either an experienced staff person or an outside third party consultant with experience in the operation of shopping centres. The less experience the owner has in shopping centre management and/or ownership, the greater the need for an experienced manager. A background in office building or apartment management is not sufficient for a full charge shopping centre manager, especially in the super charged environment of the Indian shopping centre market. 118

SECTION IV MALL MANAGEMENT

SHOPPING CENTRE CATEGORIES There is often a question as to the differences between managing a very high-end shopping centre and one that is aimed more at the middle to lower end of the economic spectrum. Generally, day-to day management is the same for both with a few exceptions. High-end centres most often have much higher level of finishes, fewer kiosks, less banners and fewer amusements for children. In the high-end centre the atmosphere is generally very serene, it may have substantial artwork, and a very high level of cleanliness and maintenance. Additionally, restaurants and food operations are more highend and there are more personal services provided.

Exhibit A Center Ownership

High-end centres will almost always have valet parking, where a middle market centre may or may not offer that service. High-end centres will often have concierge services as do many middle centres, but in the high-end centres they will often provide buying assistance, registration for gifts for weddings and showers, package carryout, tickets to major entertainment events and even in one case, transportation to and from the mall upon request. High-end merchants are quite willing to pay higher rents and service charges, provided they are able to generate sufficient volumes to support those costs. It is incumbent upon the owner to be sure that there are sufficient trained personnel to meet the needs of the shopping centre.

Financial Functions

Center Manager

Accounting

Contract Marketing

Lease Administration

Contract Maintenance

Leasing Director

Contract Security

Small Centre Organisation

Leadenhall Market, London

The least complicated staffing is generally found in smaller shopping centres. (See Exhibit A) This approach to

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SECTION IV MALL MANAGEMENT

Exhibit B management is most often off site, involves multiple smaller centres, and most often operates from the owner's main office. Most often the maintenance, security and marketing functions are handled by contract services. Accounting is most often done in the home office as is lease administration. The manager reports direct to the owner or the asset manager depending on the structure of ownership. The manager, in this case, is responsible for all aspects of the centre's operation and has little staff support for any of his or her activities. This is truly a 'hands on' manager. Mall Organisation A larger property, or mall, will have a full-time on site staff. (See Exhibit B) Generally, everything but leasing will be under the general manager's control. Most often monies will be collected on site, but in some larger companies rents will be sent directly to the home office. The manager will have an experienced staff to take care of the various modules of management, including security, marketing, maintenance and fiscal responsibilities – such as reports to owners and lease administration. Multiple Mall Organisation

Bluewater Shopping Centre, Dartford

In the ownership of multiple centres we see a slightly more sophisticated management model. (See Exhibit C) The on site operation is very similar to the major mall management, but there is most often an extra layer of expertise in

Center Ownership Center Manager

Leasing Director

Administrative Assistant Financial Manager

Marketing Manager

Accounting Manager

Maintenance Manager

Security Manager

Reports to Owners

Advertising & Promotion

Accounts Payable

Maintenance Personnel

Security Personnel

Lease Administration

Display Manager

Accounts Receivable

Contractor Oversight

Retailer Coordination

Tenant Sales Analysis the main office in the form of very experienced personnel in the areas of marketing, security, administration and maintenance to provide advice and services to all of the shopping centres in the portfolio. With the proper staff in place the attention can then be turned to those factors that create the proper environment for successful centre management.

FACTORS FOR SUCCESSFUL SHOPPING CENTRE MANAGEMENT There is an expectation that the owner/developer will have chosen a good location for the shopping centre and that the centre will be well designed and well constructed. The developer/ owner will be expected to create a good tenant mix, provide professional management and promote the centre in order to generate maximum appeal to the centre's customers. Technology Tools The astute developer/owner will provide all of the most up-to-date tools and 120

technology to facilitate the efficient operation of the shopping centre. Those tools will include computer programmes to provide the oversight and control the maintenance of the shopping centre. Such programmes as 'Aware Manager' provide the management with a comprehensive maintenance management system. The system will include work order or service request servicing with follow up capability. The programme sets up preventative maintenance schedules and issues reminders as the dates approach. Scheduling and purchasing are also modules within the system, as is the tracking of insurance certificates and all correspondence relative to the maintenance function. Administration Programme An effective administration programme will include lease summaries for all of the leases within the shopping centre, to include all lease changes and/or options during the lease term. Any early termination dates will be flagged and a reminder issued. The comprehensive accounting and lease administration package should have interface modules

SECTION IV MALL MANAGEMENT

Exhibit C Center Ownership Outside CPA

Marketing Consultant

Center Manager

Leasing Director

Security Director

Maintenance Director

Administrative Assistant

Financial Manager

Marketing Manager

Accounting Manager

Maintenance Manager

Security Manager

Reports to Owners

Advertising and Promotion

Accounts Payable

Maintenance Personnel

Security Personnel

Lease Administration

Display Manager

Accounts Receivable

Contractor Oversight

Retailer Coordination

Tenant Sales Analysis

It is much easier to prevent security problems than it is to correct them after the fact. Security can be anything from officers in blazers and slacks with a radio as their main tool to full military uniforms with mace or guns as their main tools.

for accounts payable and receivable, check writing and vendor maintenance files. A state-of the-art system will have a module for the writing of the monthly management reports and a spread sheet programme for the preparation of the budgets and follow up accounting reports. Utility Management Spreadsheet programmes are very effective in the setting up and tracking of budgets, common area allocations and

the tracking of tenant sales. A comprehensive utility package is a must for all larger shopping centres. Utilities, including air conditioning most often account for a very large percentage of the operating expenses and a good oversight programme will control the usage to optimise the system. State-ofthe-art equipment should be provided to maximise security effectiveness which may well include any needed site vehicles for patrolling the parking lots, two way radios, television monitoring of

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the common areas and electronic logs for tracking security information. Mall Security Most large shopping centres today start with a strong security presence. One can argue that this gives the feeling that there is a problem, but the truth is that a strong security presence will almost assure that there will not be problems. It is much easier to prevent security problems than it is to correct them after the fact. Security can be anything from officers in blazers and slacks with a radio as their main tool to full military uniforms with mace or guns as their main tools. This will depend on the nature of the society, the trade area of the shopping centre and the nature of the risks involved. Because of past problems, some shopping centres in Istanbul have metal detectors at the entrances. It would not be their first choice, but the situation demands they provide that level of protection.

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Cafe in Shopping Gallery at Caesar's Palace, Las Vegas

ROLE OF THE MALL MANAGER The centre owner is obligated to operate the shopping centre in an effective manner and that is accomplished through the manager. The manager will be expected to interface with the owner/developer, lenders, tenants, customers, contractors, city officials, insurance providers and centre personnel. This is no small task as the ability to communicate well with this diverse group of people is difficult and demanding. Value Enhancement The effective manager's main job is Value Enhancement. There are any numbers of ways this can be accomplished. The astute manager will spend a large amount of his or her time visiting with the merchants to see how they are doing and what is working for them and what is not. Along with being fully aware of the tenant's sales figures, this puts the manager in a position to advise the owners of which tenants are doing well, and why, and which ones are not doing well. This will help the owner in making leasing decisions. The manager will negotiate for optimum service contracts and make decisions as to when it is best to use contract services and when it is best to provide the services through an on site staff. This decision can be very critical when it comes to security services as

Luohu Commercial City Shopping Mall, Guangzhou

the liability and the perceptions are critical to the success of the shopping centre. Cost Management The manager will be expected to maintain the property, at all times in first class condition, but at an effective cost. One may argue that these expenses are passed along to the tenants and therefore is not that critical, but the astute tenant is looking at his or her occupancy costs at each location and may well not lease a new store or renew a lease where the expenses are out of line with the competition. Maintenance Each customer coming into the property will expect first class cleanliness and state of repair. The manager will be expected to maintain the property in a safe and secure manner. If there is a perception that the centre has a high level of crime, rowdy teenagers, or that there are an inordinate amount of car thefts or accidents on the property, customers are likely to go elsewhere. Additionally, the manager will constantly inspect the property to be sure that it is receiving the proper maintenance to minimise or avoid major repairs. Accounting The manager will be expected to provide accurate and timely accounting to both the owners and the

The manager will negotiate for optimum service contracts and make decisions as to when it is best to use contract services and when it is best to provide the services through an on site staff. This decision can be very critical when it comes to security services as the liability and the perceptions are critical to the success of the shopping centre.

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Kringlan Shopping Mall, Reykjavik

tenants. This includes the timely collection of monies owed to the shopping centre. Money has a time value and if collections are allowed to build up, the owner is losing the cash flow and the added value that those funds would represent. Additionally, the manager is not doing any tenant a favour by letting them get behind on the rent and charges. Nothing will destroy confidence in the manager more quickly than inaccurate or late accounting. Owners use the accounting and management reports to make decisions and if they are late or inaccurate, those decisions may be flawed. Marketing The manager will be expected to provide effective and timely marketing programmes, evidenced by growing sales for the centre as a whole. Marketing is one of the more difficult aspects of management to measure and evaluate, but the manager must be aware of the competition, the sales within his or her centre and make a reasoned decision as to the expenditure of marketing dollars. By talking with merchants after each marketing event, the manager should get a good idea as to what is working in that market and what is not and tailoring future programmes in the direction of past successes. Sponsorships are also a great source of income and local merchant support. The manager should be working in the community and contacting potential sponsors for the

Galleria dell'Industria Subalpina, Turin

centre. Sponsors come in all shapes and sizes. The local automobile dealership may want to advertise in the mall and in one centre they provided the security vehicles at a deep discount. Sponsors often subsidise the centre's handout directories. Printing companies have been sponsors for the centre newsletter. Art and crafts associations often provide advertising and on site shows for the benefit of the centre. Christmas decorations have been provided by a major supplier and a major motion picture provided a very elaborate and costly centre wide promotion in at least one case. The possibilities for sponsorships are endless for a major mall. Tenant Programme An effective temporary tenant programme is essential for the good management of any larger shopping centre. This includes vacant spaces being utilised until they are leased to a permanent tenant as well as kiosks, wall shops and cart vendors. The income from this source alone can make a major contribution to the financial success of any shopping centre. The manager will be expected to enforce the lease provisions equally among all of the tenants in the centre. If this gets out of hand where some merchants feel they are not getting a fair deal, they are likely to move when the lease expires. Turnover is expensive for a shopping centre, especially when it is caused by poor management.

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Shopping Mall, Petronas Towers, Kuala Lampur

CONCLUSION The centre owners have the ultimate responsibility for these activities, but they are best handled by an experienced shopping centre professional. The owners requirements are set forth in the operating policies and procedures, the owners goals and the limitations on the managers responsibility and authority. These must all be clearly conveyed to the centre manager. The manager should be given authority commensurate with the responsibility to get the job done, but should also be subject to frequent reviews and to objective evaluations against the set standards. The owners should not interface with tenants to the degree that it renders the manager ineffective. Decisions beyond the manager's authority must be presented to the owners and the owners must provide timely decisions or the tenants will feel no one cares, especially the manager. There is no one more concerned with the long-term welfare of the shopping centre than is the owner. However, the typical owner is a very busy executive creating new projects and making major decisions. The day-to-day management is best left to a shopping centre professional in the area of management, with strong ownership support and with realistic limitations and continuous evaluation. Stated in terms of an old business axiom: 'trust, but verify'.

Madrid Xanadu in Spain

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EXPORTING INTERNATIONAL MANAGEMENT PRINCIPLES TO AN EMERGING MARKET BY PHILIP EVANTS > Head of Retail, Greece > Cushman & Wakefield

I

had the opportunity to visit India earlier this year and spent some time in Mumbai, Bangalore and New Delhi and was staggered by the shear number of opportunities for retail development. Clearly, the shopping centre development is spread across the country and probably in more than 200 cities and towns. There are approximately 1,200 shopping centres either under construction or planned to be open and trading before 2010-11. However, some of the centres are by developers who are merely looking at immediate development opportunity and as a result they may not have given adequate thought to the design of the centres. The net result will be that a 124

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basic design eliminates the integration of the two and both function in isolation without supporting each other. The centre fails to derive benefit from the presence of an anchor and the anchor fails to benefit from the mall footfall. The anchor tenant would fail to perform their role as an anchor.

number of these shopping centres may fail to live up to their promise to provide consistent footfall and conversions to support retailers. There is hundreds of million of square feet of retail real estate under development currently; and for the best to succeed, there is a need to operate these centres professionally. The need to give each one of them an identity, make them stand out with their own brand values and individual personalities in order to provide unique reasons for customers to visit. There lies a need to look into and apply the science of 'Mall Management'.

The design of the centre should be unique and something previously unseen by the consumer, giving the centre its own identity. Many of us, those who have travelled around the world and seen one boring centre after another, it is those that are unique that inspire us and command a better recall. It has to provide a platform for retailers to trade to their optimum and a design that encourages them to be innovative in their approach to shop-fitting, with cutting edge designs.

The mall management process broadly deals with design and development consultancy, marketing of the mall, finance and administration, operations and tenant relationship or coordination. While the title of the article sounds rather grandiose, I hope the message will become clear: by international management principles, I do, of course, mean Western European, i.e., those methods that have been tried and tested and are what international investors have come to expect. I hope you will forgive me for describing India as an emerging market, but, in terms of retail space, we are far behind even Central European countries and now that the market is opening up to international investors, we need to ensure that our new schemes are set-up and managed in accordance with these principles.

It should be an amalgam of shopping and leisure, where the potential customers can come and feel entertained and above all else, it must be a powerful brand in its own right with clear brand values. Everyone should know what it stands for. For example, Xanadu in Madrid; Spain has been very successful in this regard.

So what is it that developers can do to take better advantage of this situation? n

Getting the Basics Right: in terms of design and management set-up. Design, not only to provide great customer experience but much more in terms of operational efficiencies.

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Transparency: An open book policy with the retailers and the way in which we administer the service charge. A better operations-oriented design would also bring efficiency in operational costs.

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Efficiency: How we maximise the income and returns from our shopping centres.

But in order to churn profits, we have to get the basics right, so let's start at the beginning with 'Design Consultancy'.

THE ARCHITECT'S BASIC DESIGN

Galleria Vittorio Emanuele II, Milan

Is it reality or Fantasy Island? Has he understood the brief or is he on his own ego trip? Signature buildings and designs are good, but they have to be capable of operating. They have to be in sync with the retailers demand and requirements. In an emerging market like India the consumers' preferences will change much faster and hence the design has to provide flexibility and opportunity to adapt to economic changes and remain successful for the longer term. On a project that I am involved with elsewhere in Europe, the architect had actually designed such that the anchor tenant would have the only entrance to their store straight off the car park and no entrance through the mall. In such a scenario, the 125

Parking Lot at Fishergate Shopping Center, Preston

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As mentioned earlier, the anchor tenant needs to be put in the right place, with its identity determined and the deal done -- it needs to perform its role as an anchor tenant attracting not just the consumers to the centre but supporting their circulation within the centre. The selection of the anchor tenant is one of the most critical elements of mall leasing as the positioning of the anchor tenant helps in the overall positioning of the mall and attracting other like-minded tenants into the centre.

The public or common areas need to be designed with operation and functionality in mind. Many a times the infrastructure is not designed to support the operations of a centre. A centre attracting a million and a half customers a week and employing a couple of thousand workers and sales staff would need equal amount of activity behind the scenes to keep such large operations intact. In such a mall the movement of goods and general customer care takes a beating and the maintenance costs for the upkeep of the common area increases. The customers, who should not notice operational issues, become aware of these nuisances and become distracted instead of focusing on retail.

SHOPPING CENTRE OPERATIONAL BUDGETING We need to prepare a Common Area Maintenance (CAM) or service charge budget, a realistic estimate of what it will cost to operate the centre. This should not just be a fixed percentage of rents because if it costs more, the landlord will be out of pocket and if it costs less the tenant is out of pocket and the landlord makes a profit – certainly not the best way to manage a shopping centre.

The grandness of the building which attracts more and more customers also needs to be maintained to keep it fresh forever. The materials and the finishes need to be easily cleaned and stand the test of time; the centre should continue to look new, well after the opening date. The design should provide for mechanical upkeep of the common areas. This means, a thorough planning in terms of equipments required for the upkeep, their movement and their storage with in the shopping centre.

There should be a properly calculated CAM matrix apportioning the costs across all units using a weighted formula based on floor area; more about CAM later on.

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One would need signage that are fit for purpose, clear and concise and direct customers around the centre; as well as lighting that is imaginative and adds to the overall experience; remember we are trying to create a theatre of shopping. The servicing and refuse regimes need to be designed so it happens seamlessly but behind the scenes, deliveries should not stretch across the mall during trading hours - not only is this unsightly, it also introduces huge Health & Safety issues. The goods movement through the common areas would also lead to breakage and wear tear of finishes in the common areas.

Ocean Terminal Shopping Centre, Edinburgh

The operation and location of both the Food Court and Car Park requires early consideration. Will the Food Court be leased to individual tenants or one operator? Will there be a separate CAM? Who will clean it and remove dirty trays, and so on? The customer movement in the Food Court, the operator movement in the food court, the gas supply, garbage disposal, dish washing, treatment of the wet areas, air change and air-conditioning, etc., have to be given special consideration. Material selection for flooring, furniture, etc., impacts on the future running cost of the centre.

Parking Lot at Outlet Shopping Center, Fort Myers

The car park is often the customers first and last impression of the centre, if it's covered it needs to be bright, giving the impression of space and security. The car park design should enhance the vehicle movement, ease out the peak traffic load and provide excellent signage support for customers to easily find their way back to their cars. The charging policy also needs to be determined, if it's not free, one needs to decide whether it will be pay on exit, pay on foot or pay on display. Such issues need to be considered and signed off at an early stage. The customer should not spend long hours trying to find a parking bay, to pay for the charges or to find entry and exit points. Time spent in parking by the customer is opportunity lost for the retailer. Of course, we all want our projects to be successful, these are some useful pointers to assist in that success: Team Set-Up and Structure Empower your teams. Set-up a proper structure from day one with separate teams responsible for issues such as Marketing, Finance, Operations, Tenant Coordination and insist that each of these Team Leaders reports to a weekly Board meeting on progress that is being made. The Board meetings also have to make decisions and push the client into doing so. Consultants are appointed to deliver projects, not make friends and occasionally we need to bully the client into making a decision because the worst decision is deciding not to make one!

The car park is often the customers first and last impression of the centre, if it's covered it needs to be bright, giving the impression of space and security.

This type of structure not only forces people to take and accept responsibility, it also gives the project momentum, removing disillusionment as I mentioned earlier. Operationally one needs to set out the critical path. Critical path is a schedule of absolutely everything that needs to be done working back from the opening date on a time-line. It then clearly identifies those issues that are behind schedule 127

Escalators in Festival Walk Mall, Hong Kong

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and the Board can agree on the action that needs to be taken to bring things back on track. The shopping centre budget needs to be market tested and finalised as the leasing team needs this information. It should be accurate, not just a wild presumption. Service providers and service levels need to be defined, negotiated and contracts need to be placed for cleaning, security etc, staff employed and trained and equipment purchased. With the opening date approaching, one needs to think about the marketing campaign, both from a business-to-business perspective, i.e., leasing and a business to customer angle, building up public awareness and developing the brand that the

centre will be associated with and defining what the brand values will be. A budget should be earmarked for the marketing of the mall and its launch. The budget needs to be discussed with the tenants and their participation and financial commitments agreed upon well in advance. This can be a onetime commitment or proportioned over a longer period. One should get the tenants to commit in advance to the opening campaign and spend this money wisely; the landlord also needs to make a significant contribution. And finally, one needs to get the contractor out of the building and offsite. This requires a management strategy for taking ownership of the building in a structured way so staff can be trained, the centre cleaned and

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prepared for the opening. I now want to turn our attention to two important issues that we need to consider once our shopping centre has commenced operations: transparency and efficiency. Transparency and Efficiency Transparency in relation to the way in which we manage a shopping centre, as I referred earlier to an open book policy; this is particularly so in relation to how we operate the service charge or CAM, Common Area Maintenance costs. In the UK they have recently rewritten the service charge Code of Good Practice which will come into force next June. Cushman & Wakefield exported this code to mainland Europe

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in 2004 and used it as a modus operandi at the centres we manage. Why? Because it removes a huge area of potential conflict between the landlord and tenant. Conflicts generally tend to result in the rent of service charge not being paid. The code suggests a number of things which include: The CAM or service charge is not there for the landlord to make a profit from, but at the same time, he should not be making a loss. What is spent should be recovered and what is spent should be legitimate shopping centre expenditure. It should be budgeted in advance, at the beginning of the year and the budget presented to the retailers, expenditure should be tracked during the year and re-forecast. If there is likely to be a significant overspend, this should be notified to the retailers early on. It should be a known cost that retailers can budget for, not a cost that fluctuates from month to month and is permanently disputed by the tenants.

One should prepare an annual business plan which should include aspects like Asset Enhancement Initiatives – who is trading well and needs more space, who is trading badly and needs to be replaced, is the building built to its maximum potential in terms of building permits and are there adjoining ownerships that can be bought in. Is the commercial use right and allowing the centre to trade to its maximum potential, is the balance between retail and leisure right? The property needs to be kept in a 'clean' state at all times if it is to be attractive to international investors. By clean I mean:

A well-managed centre will attract greater footfall and better revenues for retailers and many new opportunities for third party income that can be generated through other means.

It must be cash neutral to the owner's income stream and held in an entirely separate bank account and used only for shopping centre purposes. Any interest earned from that account should be credited back into the shopping centre. The yearly expenditure should be audited within three months of the year-end and expenditure reported to the tenants, any overspend should be made up by the retailers and any under-spend refunded. It is a clear and concise policy like this that removes conflict, misunderstanding and a lack of trust in the relationship between owner and tenant. There is a cost to manage the entire centre, at times this is charged as a percentage of the CAM, which may not be the right process. Management fees should be fixed or expressed as a percent of the rent, not dependant on the CAM charge, otherwise there is no desire to keep costs down. The success of a shopping centre is also dependant on how efficiently the administration of the centre is managed. How quickly the rent and CAM costs are collected, keeping bad debts to a minimum and taking serious action against non or late payers. A well-managed centre will attract greater footfall and better revenues for retailers and many new opportunities for third party income that can be generated through other means. By this I mean mall income or commercialisation. This subject commands an entire article in itself, as the ways of generating additional income are endless; but some of the general ways are sponsorships, signage, events, car park tickets, children rides, kiosks, etc. Each scheme should have a clearly defined commercialisation strategy with income targets. However, at all times the shopping centre brand must be protected and developers should resist the temptation of covering the entire frontage of the scheme in tenant's signage for additional income as this dilutes the shopping centre's own brand and at the same time, looks unappealing. 129

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Identifying development opportunity

Validation through market research Identify the tenants in line with Project positioning

Negotiations and closure of transactions Setting up management team to manage Launch

Handover to tenants, prepare promotion plan for Launch

Identify economic changes and prepare for re-positioning

Achieve Higher Capital Value for the development

Designing in line with positioning to provide distinguish identity Design Audit from operations perspective

Launch

Transparent and Efficient operations "Customer Delight"

Source: Cushman & Wakefield Research

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Are all permits in place?

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Is the shopping centre audited regularly and properly budgeted?

Fireworks on Fremont Street, Las Vegas

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accordance with their lease terms, are all leases signed? n

Are there signed contracts for all of the services provided by suppliers?

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Are asset audits done periodically?

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Have risk management initiatives and up-grading of the same been undertaken?

Is every tenant trading in

It is this 'Bible' or package of information that will be released to any purchaser and a failure to ensure it is 'clean' will hit your bottom line and come off any agreed purchase price.

But to create something that will.” Shopping centre development encompasses a huge array of skills, development consultancy, design, management set-up, leasing, marketing and asset and financial management. All of these disciplines are intrinsically linked; our failure to bring them all together, or to engage consultants who can, puts the entire project at risk. Shopping centre development is not a real estate development; it is creation of a business. This needs to be run like a business and not like a real estate asset. So what is the end result?

EFFECTIVE MALL MANAGEMENT Having spent a lot of time recently in Poland, I came across this proverb which struck a chord with me: “We all die. The intention therefore is not to live forever, 130

Either we achieve our goal and create something that will live forever or at least something from which we can make a lot of money!

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ARE INDIAN

MALLS SAFE?

BY AMIT BAGARIA AND SUSMITA DASGUPTA > Asipac Projects

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et's consider the Great Indian Mall Mania – up to 600 malls are likely to be up and running in India by the end of 2009. What shocks us is that more than 90% of the current and planned malls in India fall way short of international standards, especially in terms of design, specifications, safety and security.

And what does that lead too? With lack of proper safety standards and measures, malls in India have already started witnessing a number of accidents, some even resulting in deaths or severe injuries to children and adults alike. A series of accidents at a popular Bangalore mall has forced the state government and the city authorities to rethink on mall safety standards to be implemented by all existing and upcoming malls in the city. Even the mall in question has started adopting some measures, but the question remains, “Why do we always take corrective actions and not preventive ones?” When all Indian mall developers are too keen to make a lot of “mall” from this business, why do they just copy and paste the swanky and glitzy finishes from developed markets, instead of also copying public safety and hygiene standards? Is it because, in India, there are no strict guidelines or proper safety norms? Or, is it 131

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because there isn't anyone to monitor any standards? Or simply because we just don't care. After all, with a population of 1130 million, how does it matter if 1130 were to lose their life? Just copying the international safety standards will not serve the purpose, because most developed markets with successful mall stories, such as USA, Canada, Australia, South Africa or Dubai, have little or no experience of handling such large numbers of visitors as what Indian malls witness, especially on weekends.

A series of accidents at a popular Bangalore mall has forced the state government and the city authorities to rethink on mall safety standards to be implemented by all existing and upcoming malls in the city.

Managing such large crowds needs an altogether different approach, especially when it comes to safety and/or security. In India, parents' lovingly let their children move up and down in an escalator, for the sheer fun of it and even enjoy the sight with ultimate parental satisfaction; pedestrians simply walk aimlessly in the parking areas, being blissfully oblivious of where the pedestrian walkways are (if there are any), or where the driveways are. The need of the hour demands that we put in place very strict safety guidelines. It is high time that we start working towards creating our own safety norms for malls, taking the necessary inputs from international standards and experience.

Bangalore, NCR, Mumbai, Hyderabad, Chennai, Pune, Kolkata, Jaipur and Nagpur, over the past two years, shows that the following are the nine most potentially dangerous areas, especially in the Indian context:

Forum Mall, Bangalore

Asipac's extensive research on the subject, carried out across

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1.

Pedestrian vs. Vehicular movement, inside and outside mall buildings.

2.

Lifts

3.

Escalators

4.

Parking Areas

5.

Fire Safety

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Coated Steel Belts Gearless Machine Governor Controller

Gen2® Elevator Otis has created a smart, compact system that defines the next generation in elegant design and efficient operation.

Product Benefits: Flexible space-saving configuration Rapid installation Environment-friendly Smooth, quiet performance Proven reliability

6.

Health & Hygiene specially in Food Preparation & Service Areas

7.

Railings & similar fixtures around atriums and cut-outs

8.

Public Restrooms and other common facilities

9.

Children Play Areas and other Entertainment Zones

mall abroad, in India, don't be surprised, if you see lifts with 272 kg and 408 kg capacities. Another very typical Indian problem with the usage of an elevator in a mall is overloading, in fact, it has been observed that sometimes it is the passengers themselves who actually insist that more people be allowed inside, especially if they are part of a big group. In the recent case in the popular Bangalore mall, where an elevator crash landed three floors down after moving up to the first floor from the lower basement, officials from the Karnataka Fire and Emergency Services department, who inspected the elevator which stalled trapping 13 people (with an estimated total weight of 925 kgs), found that this particular lift had the capacity to carry only eight persons with only 544 kg weight capacity.

LIFTS Lifts, or elevators, are supposed to be very safe. The global safety record of elevators, of moving millions of passengers every day, with an extremely low rate of untoward incidents, is unsurpassed by any other mechanical transportation system, although fatalities due to malfunctions have been known to occur on occasions. In the US, elevators are considered safe, as per the Elevator Escalator Safety Foundation, USA. Of the 120 billion people who ride in 600,000 elevators across USA each year, less than 10,000 people wind up in a hospital emergency room because of elevator-related accidents.

Under such circumstances, why cannot we have automated safety measures which ensure that the lift will not operate if it is overloaded. According to an elevator industry expert, there is a possibility of the doors' alignment shifting due to prolonged usage. A short circuit could also affect the lift doors. “If the power goes off, the doors will not open. Moreover, if the doors are open, the lift is not supposed to move,'' he maintains.

Elevator capacities in public buildings are usually proportional to the floor areas. Globally, passenger elevators generally used in malls have capacities ranging from 750 kgs (10 pax) to 2,700 kgs (36 pax). This is based on the fact that the average weight of a person has increased over the years, while rationalizing the same with the number of persons that an elevator should carry. In India, capacities range from 272 kgs to 1768 kgs, with an average of only 68 kgs per passenger.

Therefore, regular maintenance of lifts is a must. In a high use building such as a mall, it should be once every two weeks. Checking door and circuits should be taken up, apart from lubrication. The safety edge between the car door and the landing door should also be checked regularly. In addition, a maintenance schedule for the elevators, displayed with dates,

While it is very rare to find an elevator of less than 750 kg in a 133

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results and with a properly authorized person's signature, hung prominently inside each elevator, will also be a good idea. For elevators in any mall in India, especially where such elevators are unmanned, besides the general controls that a typical modern passenger elevator should have, the following could be provided as a standard: n

An elevator telephone, which can be used (in addition to the alarm) by trapped passengers to call for help. While several elevators do have this, our surveys show that most are either disconnected or don't work.

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A fireman's key switch, which places the elevator in a special operating mode designed to aid firefighters.

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A medical emergency key switch, which places the elevator in a special operating mode designed to aid medical personnel.

It is common knowledge that more than 80 percent of the elevators sold in India belong to the 1980s genre. Mall developers do not opt for modern,

contemporary elevators, in order to save costs. To overcome this, their should be a law that elevators in malls and other public buildings should have a minimum 750 kg capacity, and should have latest safety approvals in USA, Japan and EU. After all, if we can follow this for vehicle emission standards, why not for elevators. And if the new five-star hotels can install the latest generation elevators, why not mall developers/owners?

ESCALATORS "Going to a shopping mall is like a family outing, but there are senior citizens who are apprehensive about using escalators. But they crowd around them and prevent other people from using them..," observes a mall frequenter. Indians are not used to using escalators. So, the question is how do we train them on it? We begin here with these basics: 1.

Hold on to the handrails to keep your balance. Do not ride or lean on the handrail or play while on the escalator. Do not sit on the escalator steps.

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2.

Always stand straight. Keep your hands, feet and clothing away from any moving parts.

3.

Do not drag your feet off the escalator steps.

4.

When you reach the bottom or the top of the escalator, exit immediately. Do not stop or play.

OTHER CONSIDERATIONS Design and layout considerations A number of factors affect escalator design, including physical requirements, location, traffic patterns, safety considerations, and aesthetic preferences. Foremost, physical factors like the vertical and horizontal distance to be spanned, must be considered. These and other factors will determine the pitch of the escalator and its actual length. The ability of the building infrastructure to support the heavy components is also a critical physical concern. Location is important because escalators should be situated where they can be easily seen by the general public. In department stores, customers should be able to view merchandise easily.

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The carrying capacity of an escalator system must match the expected peak traffic demand, presuming that passengers ride single-file. This is crucial for applications in which there are sudden increases in the number of riders. For example, escalators used in train stations must be designed to cater for the peak traffic flow discharged from a train, without causing excessive bunching at the escalator entrance. It is preferred that staircases be located adjacent to the escalator if the escalator is the primary means of transport between floors. It may also be necessary to provide an elevator lift adjacent to an escalator for wheelchairs and disabled persons.

Nirmal Lifestyle, Mumbai

Furthermore, up and down escalator traffic should be physically separated and should not lead into confined spaces. Traffic patterns must also be anticipated in escalator design. In some buildings, the objective is simply to move people from one floor to another, but in others, there may be a more specific requirement, such as funneling visitors towards an exit or an exhibit. The number of passengers is important because escalators are designed to carry a certain maximum number of people. For example, a single-width escalator, traveling at about 1.5 feet (0.45 m) per second, can move an estimated 170 persons per a five-minute period.

end of the escalator, a large red button can be pressed to stop the escalator. A transparent plastic guardplate (usually alarmed) often covers the button, to avoid the button being pressed accidentally, or for fun by children and casual vandals. Restarting requires turning a key.

KEY SAFETY FEATURES DEVELOPED OVER TIME To enhance passenger safety, newer models of escalators are being equipped with one or more of the following safety features, which should be implemented in India without any further delay: n

Anti-slide Devices: These are raised circular objects that often stud the escalator balustrade. They are sometimes informally called "hockey pucks" due to their appearance. Their purpose is to prevent objects (and people) from precipitously sliding down the otherwise smooth metallic surface.

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Combplate Impact Switches: Will stop the escalator if a foreign object gets caught between the steps and the combplate on either end.

n

Deflector Brush: A long continuous brush made of stiff bristles runs up the sides of the escalator just above the step level. This helps keep loose garments and curious hands away from the dangerous gap between the moving stairs and the side panel.

n

Emergency Stop button: At each 135

n

Extended Balustrades: Allows riders to grasp the handrail before setting foot on an escalator, to ease customer comfort and stability/equilibrium.

n

Flat Steps: The first two or three steps at either end of the escalator are flat, like a moving walkway. This gives the passenger extra time to orient him/herself when boarding, and more level time to maintain balance when exiting. Longer escalators, especially those used to enter a subterranean metro station, often have four or more flat steps.

n

Handrail Inlet Switches: Located at the bottom and top of the unit. These sensors guard the opening where the handrail enters and exits the escalator. If something gets caught between the handrail and the opening, a hard fault is

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Sizes and Typical Use

time, if no person is detected, the escalator will automatically stop.

STANDARD ESCALATOR STEP WIDTHS Size

Width (between Single-step capacity Balustrade Panels)

400 mm

16 in

One passenger, with feet together

An older design, extremely rare today

Small

600 mm

24 in

One passenger

Low-volume sites, upper levels of dept stores, used when space is limited

Medium

800 mm

32 in

One passenger + one package/luggage.

Shopping malls, department stores, small airports

Large

1000 mm

40 in

Two passengers one may walk past another

Mainstay of metro systems, large airports, train stations, some retail usage

n

n

n

Handrail Speed Sensors: Located somewhere inside of the escalator unit. These sensors are usually optical, they are positioned to sense how fast the handrail is going. In case of a drive chain/belt breaking, in order to protect the drive and people on the escalator, if the sensor notices a speed difference between the handrail and the steps it will sound an alarm, wait for a couple of seconds, then stop the escalator. A hard fault is generated inside the controller, and therefore must be serviced by authorised personnel. Level Step Switches: Switches usually located at the top and bottom of the unit near the track hold-downs. These switches will detect an unlevel step before it approaches the combplate. This is to stop the escalator before the unlevel step crashes into the combplate, possibly preventing injury to a passenger. Missing Step Detectors: Located in various places (according to brand of escalator), this sensor can either

be optical or a physical switch. No matter the type of device, the missing step detector will turn off the escalator when no step is found when one is expected. n

n

n

Step Demarcation Lights: A fluorescent or LED light, traditionally colored green, is located inside the escalator mechanism under the steps at the boarding point. The resulting illumination between the steps improves the passengers' awareness of the step divisions.

n

Step Demarcation Lines: The front and/or sides of the steps are colored a bright yellow as a warning. Earlier models had the yellow color painted on; many newer steps are designed to take yellow plastic inserts.

Applications

Tiny

generated in the controller and the escalator shuts down.

n

Raised Edges: The sides of the steps are raised slightly to discourage standing too close to the edge. Safety Instructions: Posted on the balustrades at either end. Formerly, the only warning usually given was 'PLEASE HOLD YOURSELF' or some variation thereof (and, in models that used now-rare smooth step risers, had such a message right on the step face). Now, a series of instructions are given (see below). Sensor Switch: Placed at the starting end of the escalator, the Sensor Switch will automatically start the escalator if a person is near the entry point. After some

Safe Riding While some escalator accidents are caused by a mechanical failure, most can be avoided by following some simple safety precautions. Some suggestions for safe riding include: n

Always step out at the end of the stairs to prevent from falling.

n

Check for loose garments such as long dresses, dupattas, etc. Also, loose shoelaces are particularly notorious for getting caught in escalators.

n

Children under the age of seven should be accompanied by an adult when riding. Adults should hold a child's hand.

n

Do not use the escalator when transporting any large package or when pushing a device with wheels, such as baby strollers and shopping carts. Also, the escalator should not be used by someone with a walker or on crutches.

While some escalator accidents are caused by a mechanical failure, most can be avoided by following some simple safety precautions.

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Level step switches switches usually located at the top and bottom of the unit near the track hold-downs. These switches will detect an unlevel step before it approaches the combplate.

n

Do not use the escalator if it is not in motion. ("Escalator steps are not the correct height for normal walking and should not be used in that manner. The risk of tripping and falling is greatly increased.").

n

Face forward.

n

Hold the handrail.

n

Do not ride barefoot.

n

Keep footwear away from side panels.

n

Keep walking after exiting the escalator to prevent a pileup.

n

Stand to one side to allow others to pass you on wider escalators.

PARKING SPACES / LOTS Most global building codes for malls require that there be 1.5 sq.ft of parking space for every foot of rentable retail space. Another ratio is five car parking spaces (CPS) per 1,000 sq.ft of retail space, which needs 1.7 sq.ft of parking space for every foot of retail space. In India, there is usually only one to 1.2 CPS per 1,000 sq.ft of retail space, which is a fourth or fifth of what is required.

pedestrian pathway, this is absent in India. Even ramp widths in Indian malls are sometimes inadequate. The popular mall in Bangalore, where five to six lift or escalator related incidents have already taken place in just two years, arguably has the worst multi-level car park in the world we need to check whether the Guiness Book of World Records will list this category. This is even more shocking when one realises that this mall itself, built on a prime government (public) land, was actually meant to be by product for subsidising the construction of a public parking lot.

Due to this, developers provide less than adequate length/width in the slots and also compromise on driveway widths. Thus, reversing cars could easily lead to accidents, some which could be quite serious or even fatal. Also, while many mall parking lots abroad have a well defined

Lighting at Parking Lots Lighting, either too little, too much, or the wrong kind, is often a problem in parking lots. In open lots, it is difficult to effectively light the whole area, especially since weather conditions may change. In closed lots, because the ceilings are low, the light does not get dispersed evenly, and corners usually remain in darkness.

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1.

Use lighting that will not create glare, or blind drivers.

2.

Consider using halide lights rather than the more common sodium lights. Halide lights show true colour much better than sodium lights do.

3.

Lighting should be uniform. Passing from high to low intensity lighting area may be difficult on drivers.

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4.

5.

Using bright colours on the walls that reflect light can increase the brightness further. Brightly coloured walls frequently invite graffiti, so it is important to use surfaces not suitable for graffiti, or pain that can be easily washed. In level lots, natural light should be used to the greatest extent.

Access Control in Parking Lots 1.

2.

Make enough entry points to the main mall so as to keep shortest possible distance from any parking slot, so that a visitor does not actually have to walk a long distance in the parking lot to enter the main mall

places at malls where pedestrians could be walking about) should be restricted to a maximum of 10 kmph. Crime at Mall Parking Lots As parking areas fill up, shoppers are often forced to park far from mall exits, sometimes in poorly lit areas. Park as close to entrances and exits as you can. No one wants to circle the lot for an hour waiting for a good spot to open up, but give it a shot, at least for a few minutes. n

If forced to the far reaches of a lot, or even beyond the lot, seek a spot that's well-lit or near a welltraveled driveway.

n

Stow your purchases in the trunk. When you're weighed down with packages, you may be tempted to throw them in the back seat and return to the mall to continue shopping. If your purchases are in plain view, you may return to find your car windows smashed and your things stolen.

Pedestrians should not be allowed into the parking facilities, and lots should not be used as pedestrian entrances or exits to the mall.

3.

Only shoppers with parking ticket or pass should be able to enter the parking lot from the mall.

4.

Proper signage and systems to lead the visitors to the right parking lots

n

Save your most expensive purchases for last, so you can head straight home.

n

Have your keys ready when you approach your vehicle. Before

Speed Limit The speed limit for cars and bi-wheelers within parking lots (and even other

entering, check that no one is hiding in the back seat. Most crime in malls happens in the parking lots, simply because there are many appealing targets and few people around to keep an eye on things. Parking lots that are open air tend to be safer than underground or covered ones. Open air parking lots provide for more natural surveillance, as other people entering and exiting the mall are able to observe the activity in the parking lot, while this is not the case with multistory closed parking. First impressions count. For most customers, the parking lot is their first encounter with a mall. Does it give a friendly, safe and secure impression, or one that is foreboding, dangerous and dark? Elevators and stairs should never be placed in the back of the lot, but centrally instead. Access to and from them should be open and not intimidating. Stairs should be kept open, rather than enclosed by walls, so that person using the stairs can be seen from the outside. This will not just prevent offenders form using stairs as escape routes or hiding spots, but will also prevent them from attacking shoppers there. Elevators should be equipped with cameras, well lit, and if possible, be

Most global building codes for malls require that there be 1.5 square feet of parking space for every foot of rentable retail space. Another ratio is 5 car parking spaces (CPS) per 1000 square feet of retail space, which needs 1.7 square feet of parking space for every foot of retail space. In India, there is usually only 1 to 1.2 CPS per 1000 square feet of retail space, which is a fourth or fifth of what is required. 138

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EXAMPLES OF TYPICAL PARKING LAYOUTS Building

Entrance or Exit

Entrance

Entrance or Exit

Entrance or Exit

5.6m 3.0m

9.5m

6.0m 6.0m

6.0m

5.4m

4.5m

6.0m

Entrance or Exit

3.0m 5.6m

700 Parking

5.5m

5.4m

9.5m

5.4m

5.5m

6.0m 17.0m

5.5m

450 Parking

5.5m

900 and 450Mixed Parking

0

90 Square Parking

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Lighting, either too little, too much, or the wrong kind, is often a problem in parking lots. In open lots, it is difficult to effectively light the whole area, especially since weather conditions may change. In closed lots, because the ceilings are low, the light does not get dispersed evenly, and corners usually remain in darkness. made of glass or other translucent material, in order to prevent it from being used for illegal purposes or as attack spots. Covered parking lots should be designed with open sides and low walls, so people passing by can easily see what is going on inside. Inside the parking lot, walls should be avoided whenever possible, in order to prevent the obstruction of the view of the lot. All traffic should be directed in one direction, both for pedestrians and vehicles. This will increase number of people moving around certain areas of the lot. There should be no dead ends. All parking spots should be placed around the ramp that is used to get around the lot. For open lots, bushes and trees should be trimmed so as not to obstruct views. Constructing parking area behind the mall should be avoided. Parking in front of the mall entrances both makes it more convenient for customers, and also increases the natural surveillance because of the pedestrian traffic. Avoid parking spots close to the emergency or other exits, which may be used by offenders. Since space is not as big problem for open lots, more space

should be left between parking spots, in order to reduce vehicular crowding and increase visibility.

mall, where customers can pick up and use them to remind themselves of where they have parked. This can actually be very cheap to do, because individual retail or F&B outlets at the mall could put their ads on the map, and cover the whole expense, and perhaps even create profit for the mall.

SIGNAGE How many times have you found yourself in a multi-level parking lot, hopelessly looking for your car, thinking, “Was it on the 3rd or 5th level, was it F or D row?? People lost in parking lots are at greater risk of being attacked. Making it easy for everyone to find their way quickly and efficiently gives a feeling of safety and also removes the opportunity for offenders to attack. 1.

2.

While numbers and letters should be easy to remember, people frequently get confused and forget them. Some malls have started marking the levels with fruit or animals. Instead of 'First', 'Second' and so on, there are 'Strawberry', 'Orange', or 'Lion', 'Horse', or 'Dog'. These seem to be much easier to remember, and if the walls are appropriately decorated too, add to the bright feeling in the lot. It is possible to make maps of the parking lot and place them by the elevators or the entrance into the 140

3.

Colours can be further used to mark parking rows, with stripes on the walls, or on the floor.

4.

Arrows should be clear, both on the floor and on the wall, in order to direct both car and pedestrian traffic.

5.

Have clear directions showing the location of guard booths, elevators and stairs, as well as maps of the mall in the parking lot.

FIRE SAFETY A fire hazard can be caused because of multiple sources of origin electrical wiring, cooking at food courts or restaurants, carpeting at multiplexes, smoking, etc. Yes, even though we have fire safety rules as per the National Building Code, and we have seen those

SECTION IV MALL MANAGEMENT

fire extinguishers hanging on the walls or lying in some corner in malls, we are not sure whether: 1.

The fire safety systems are in working order.

2.

The fire extinguishers are refilled as necessary.

3.

The sprinkler system works.

4.

There is regular maintenance.

5.

Security personnel are trained to use these.

6.

There is a Fire Safety Officer in the mall.

7.

Whether the security personnel and other staff members are adequately trained on how to act in a fire emergency situation.

8.

Does anyone care?

Regular unannounced mock fire drills need to be part of any fire safety system in a public building. So that the public is aware of what to do and staff are always on their guard, apart from being adequately trained practically. And also so that the fire fighting crew at the fire services department become familiar with these public buildings. But, how many times have we ever seen a mock drill being conducted? Let's start with this. And let's engage the visitors as well. Unless, we want to wait for another tragedy like the Upahar cinema in Delhi or the school in Tamil Nadu. After all, like we said before, what's 1,130 fatalities in a country of 1,130 million. Also, let us put clear signage on each floor showing where the Fire Exits are. But, with the crowds, how do we avoid a stampede in

such a situation? Maybe we need fire exits in multiple directions on each floor. Train All Staff About the Mall's Fire and Life Safety Systems Does everyone know what and where the fire and life safety systems are, and how they work? Which of the following does your mall have and what is their importance in a fire...smoke detectors, manual pull alarms, elevators, stairwells, fire doors, alarm system, sprinklers, etc.? Have Regular Discussions on Fire Safety Discuss hazards particular to the facility. What can one identify and what precautions should be taken? Have staff from different areas identify hazards common to their work area (kitchen, bar, security, management, etc.) Hold Fire Drills Hold drills at regular and non-scheduled times in order for staff to practice the emergency response plan and to evaluate how well they understand their

Elevators and stairs should never be placed in the back of the lot, but centrally instead. Access to and from them should be open and not intimidating. Stairs should be kept open, rather than enclosed by walls, so that person using the stairs can be seen from the outside. This will not just prevent offenders form using stairs as escape routes or hiding spots, but will also prevent them from attacking shoppers there. 141

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responsibilities in such real life situations. Everyone should have the opportunity to physically run through the procedures. Studies indicate that, unless adults actually practice safety behaviors, they very well may not be able to perform them correctly when the need arises. Gradually increase the realism of your fire drill. "Hide" employees in the building to see if they are located or missed. Post a sign in one of the exits indicating it is blocked by smoke. Evaluate every fire drill. Did everyone respond correctly and appropriately to the drill? Are there staff concerns that need to be addressed regarding the evacuation procedures? These are questions fire drills can help answer. Such mock drills will also help in meeting challenges of similar natural or man-made hazards of earthquake, bomb blast etc.

RAILING & SIMILAR FIXTURES The Telegraph, reporting on the death of a six-year-old boy in a Bangalore mall, who slipped four floors down through the gap where the handrail ends, observed that this incident “May have shed light on a possible lethal flaw in shoppers' havens, though it isn't clear if every

Regular unannounced mock fire drills need to be part of any fire safety system in a public building. So that the public is aware of what to do and staff are always on their guard, apart from being adequately trained practically.

mall has a gap between the escalator handrail and the floor railings… Even the balcony railings of the mall built in the usual mezzanine style where floors don't run wall to wall have huge gaps, more than a foot high and about a foot and a half wide. Some of these gaps, big enough for very young children to slip through, are covered by glass sheets but many are open.” The Hindu, on July 3, 2007, quoted a retired town planner, who said that “Such safety lacunae in buildings were mainly because of absence of appropriate knowledge about the delicate issues of engineering and architecture, among the town planners, who approve the building plan. Also to blame is the failure of constant inspections during construction of such buildings and before issuing NOC. Even post-

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construction inspections were not adequate.” Such accidents are also an eye-opener for parents who let their children run about the malls while they shop in peace.

PUBLIC RESTROOMS In a study by Kimberly-Clark Professional, 39 percent of survey respondents in USA feared picking up germs in a public restroom more than any other place. Nothing can be truer than this in the Indian context!

lack of available sinks, soap dispensers or dryers. A Modern Washroom Should Have The Following Features: n

There should be a chemical-lined dispenser bin in each of the ladies' WCs for the proper disposal of used sanitary pads.

n

Door-less entry (labyrinth entrance): It prevents the spread of disease that might otherwise occur when coming in contact with a door. Door-less entry provides visual privacy while simultaneously offering a measure of security by allowing the passage of sound.

n

Sensor operated fixtures prevent the spread of disease by allowing the users to circumvent the need to touch common surfaces. Sensor operated fixtures also help conserve water by limiting the amount used per flush, and require less routine maintenance.

n

In the Indian context, where we are not habituated in the use of toilet paper, a health faucet (bum washer spray) is an absolute must.

Foul odors, lack of supplies and puddles on the floors can all be signs of improper maintenance. Odor that comes from public restrooms can be caused by urine in tile grouting. If the floors aren't properly cleaned daily (or more depending on the traffic) then the uric acid salts will not be removed with regular cleansers. These salts provide a food source for bacteria whose digestive processes give off the foul odor. A lack of supplies (toilet paper, hand drying towels or soap) can also increase the unhygienic conditions of a restroom. Overly crowded restrooms can suffer from a lack of supplies or a 143

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Another good idea to implement in both men's and ladies' restrooms would be to get a countertop changing area to increase safety while changing an infant's diapers right next to a faucet for the mother/father to utilise in cleaning up without having to let go of the squirming baby. Restrooms in malls tend to be hidden in remote spots, in order to discourage use by non-shoppers and keep visible and central areas for business and retail. However, this strategy frequently encourages crime. Hidden restrooms are perfect spots for robbers, because they are away from the view of other customers. Further, they may become areas for people to gather, and in some cases even use drugs.

Last, but not the least, it is high time for us Indians to realise and understand that, although providing safety and security is an integral responsibility of mall developers, owners and managers, as well as the retailers who operate in the malls, it is also our individual responsibility to take ownership of our own actions. OTHER POTENTIAL ACCIDENT AREAS Children Play Areas Children's play areas should always be at the ground floor level, and must be enclosed properly. The interiors of these areas should not have any things with sharp edges. Food Court Don't plan a food court in the basement of any mall. Have proper fire safety systems and garbage disposal systems. Ensure regular food-grade disinfectant use to prevent bacteria. Electrical Wiring Good quality electrical wiring should be used, within fire rated conduits. Before signing up, we want to add something which may not directly concern safety, but is bound to go a long way in indirectly ensuring better malls in India. Something that Asipac has been advocating for the last three years – a definition for different types of malls, which can be an Indian adaptation of ISCS's following definitions: Last, but not the least, it is high time for us Indians to realise and understand that, although providing safety and security is an integral responsibility of mall developers, owners and managers, as well as the retailers who operate in the malls, it is also our individual responsibility to take ownership of our own actions. Jai Hind. Mera Bharat Mahaan.

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BUILDING A MALL BY SHILPA MALIK > General Manager > Select Infrastructure Pvt Ltd

I

t has been three years since I put together my thoughts in the first edition of the IMAGES Malls in India publication; it was then an anxious expression of the nature of order and chaos around the frantic activity in retail and creation of formal shopping environments in India.

Well, the order has given way to two of the most critical developments of the last couple of years in the Indian retail industry interest from large Indian corporate houses such as Reliance, Bharti and opening of the FDI (though there is still a lot to be desired on the FDI front). And the chaos has transformed into every land owner, investor and practically every domestic or international private equity fund scouting for investment opportunities in retail! The buzz around the Indian retail Industry can now hardly be contained within the neighborhood kirana store or our geographical boundaries for that matter. This third edition of the Malls in India research series, put together by IMAGES F&R Research, has tried to capture this essence by collating expert views and conducting intensive research. 146

SECTION IV MALL MANAGEMENT

In the last three years I have had an interesting tryst with an opportunity to live 'my experiments with truth' in creating malls, during the making of over a million square feet of a development called Select Citywalk.

Now that the urban Indian consumer has been declared to be ready for matrimony with organised retailing experience, and is largely synonymous with adjectives such as rising disposable incomes, changing aspirations and lifestyles etc, it is interesting to note the number of grooms that are in queue to attract her attention: department stores, discounters, hypermarkets, not to mention the mother of all in the wings – Wal Mart – a plethora of brands and retailers, mass, premium, super premium, luxury, niche, speciality stores, category killers, Indian, international, organised, semi organised, decades of learning curve has been compressed into a bundle of choices and hurled at the Indian consumer at one time! It is like launching the mobile phone with all the models Nokia has ever come up in its lifetime, displayed on the shelf, at a time when all one has ever used is an MTNL land line phone! In this environment, it shall certainly be a challenge for the brands and retailers to attract the consumer. She is maturing faster than expected, is more informed and educated, willing to spend, but also getting demanding. Several formats and retailers who have seen there plans go awry bear testimony to her caprice. At the same time she has an open mind and is still evaluating the retailers and shopping centres. Meanwhile the learning curve for the shopping centre industry has been rather interesting and steep, while over 80 million sq.ft of 'organised shopping centre' space having come up over the last three years, a mere handful of centers have been made a significant market impact. According to IMAGES F&R Research estimates, the total supply of shopping centre by 2011 is roughly projected to be more than 300 million sq.ft. While few of the centres never took off the drawing board, others which have been built have not been able to attract retailers and consumers, some are already being repositioned and in absence of appropriate development approach many are expected to follow the same course. The adage of 'location is everything' has been taken too literally by several property owners who have turned shopping center developers overnight and created products without any focus on fundamentals. In fact , there shall probably never be a better time to reemphasise the importance of the basics of shopping centre development – catchment quality, positioning, tenant mix, zoning, retail planning, infrastructure provision, professional management and of course location. Equally, the challenges for the

Inorbit Mall, Mumbai

Clearly, it has been established that Indian consumer is ready to experience the flavour of organised retailing and the 'Call of the Mall' has and shall prove to be irresistible for him.

Indian developer have been increasing, particularly over the past few years high land cost (which in turn have increased pressure on occupancy costs for retailers), complexity of interface with government regulatory bodies for clearances, a largely unorganized construction industry and inadequate access infrastructure to name a few. Amongst the successful handful of centres (such as The Forum in Bangalore or Inorbit Mall in Mumbai to name a few), the trends have been promising there are more leased models in the pipeline today than a couple of years ago, a focus on a planned mix, relevance of scale, influx of professionals, increasing reliance on international architectural and planning expertise etc. Clearly as we go forward, malls shall have clear cut categorisation in terms of positioning – mass, premium, luxury etc.; and function – neighborhood centres, lifestyle centres etc. Consistency of approach, strict adherence to leasing strategy throughout the development phase, a strong consumer focus and integration of all disciplines of development such as planning and design, leasing and tenant mix, legal frameworks, etc., shall become imperative to developing good quality shopping centers which are driven by retailer performance. As the spread of the organised retail activity spreads beyond the top eight to 10 cities to almost over 50 cities in the country, organised shopping centre development shall follow, or probably lead with an intense fervour. This book articulates learning from the past few years of industry experience, presents expert views on various related subjects, highlights key challenges, profiles mall developments and tracks shopping center space supply. The industry estimates that over 300 million sq.ft of space will come up by 2011 and that the US$270 billion Indian retail industry will grow by leaps and bounds over the next five years! With over a decade of learning behind, the shopping centre industry has to now mature. The time for making the quick buck is over, its time to get down to serious business of shopping centre development and set benchmarks.

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MALL SPACE IN INDIA

SECTION V MALL SPACE IN INDIA

Unitech's Great India Place

MALL SPACE IN INDIA

A Demand & Supply Analysis An IMAGES F&R Research Analysis

T

he Supply of Mall Space, especially in a fast developing economy like India, will necessarily be subject to cyclical ups and downs even as the economy and businesses come to grips with the complex market forces relating to demand for retail space and the project costs that very often tend to go out of bounds. Images set itself to the task of monitoring this very special market segment way back in 2004 when, after a 126 percent growth in supply of mall space 8.4 million sq.ft of mall space had suddenly come up and there were few takers. Sections of the media felt the mall boom had gone bust. This is when Images compiled the views of global experts on the subject in the first edition of the Shopping Centres & Malls in India Book – the developers had to informed on the correct way forward. 150

SECTION V MALL SPACE IN INDIA

Since then, the industry has come a long way, albeit in a very short span of time. The 126 percent growth in mall activity in 2004 was just the start-up of the engine following which growth rate climbed down to 99 percent in 2005 and further fell to 61 percent in 2006. All this while the solid foundation of the Indian Shopping Centre industry was being laid, mall space had increased from 8.4 million sq.ft in 2005 to 16.7 million sq.ft in 2006. In the second edition of the Malls in India 2005 research publication we projected a growth of 97.4 percent in 2005 and 61.7 percent in 2007 with 32.7 million sq.ft and 54.3 million sq.ft of mall space for the two years respectively. Today, when we take stock of the situation, we find that the clock is back by one year, mainly because several announced projects did not take off. The earlier projection of 87.8 million sq.ft of mall space by year 2007 is now likely to be achieved in year 2008 when there will be more than 290 operational malls. The positive side of the picture is that the growth rate was projected to be around 62 percent in 2007, which will now be in the vicinity of 76 percent. Based on the status of

mall projects under progress, this growth will further accelerate to 85 percent in 2008, which will ensure availability of more than 154 million sq.ft of quality retail space in 2009. The market will be at a mature height by year 2010 with nearly 205 sq.ft of mall space. Even modest growth thereafter should be able to push the mall space supply in the country to a level beyond 350 million sq.ft by 2015, with more than 750 malls operational by then. By all counts, this is the big time for the retail real estate industry. All indicators look positive. The Indian economy is speeding ahead at the rate of about nine percent per annum, foreign exchange reserves are getting close to the US $200 billion mark, growth in private consumption expenditure is restlessly trying to surpass the GDP growth rate and organised retailing is growing at over 40 percent per annum. Permission to FDI in the real estate sector has provided a further boost to the mall and shopping centre industry. Till March 2007 US$23.9 billion FDI had flown in to the 17 major Indian cities. Real estate accounts for nearly half of the inflow.

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SECTION V MALL SPACE IN INDIA

Distribution of Mall Space The West zone has had the maximum number of mall developments thus far and its share in overall supply of mall space is a dominating 44 percent of the 47.4 million sq.ft of space to be available in 2007. The North zone accounts for 35 percent followed by 14 percent share to the East and remaining seven percent in the Eastern zone. This share matrix will drastically change in the next four years. By 2011, out of a total supply of 236 million sq.ft of mall space, the share of North zone will increase to 39 percent, the South and East too will increase their share to 24 percent and nine percent respectively. The share of West zone will be reduced greatly to 28 percent, but this reduction in no way implies a slow down in mall activity in Mumbai or the other parts of the region. It is a relatively lower activity as compared to the other regions.

Kolkata is the only major city in the East and that too has had the awakening call to modern services sector quite late. But once awake, this urban giant will for sure extract its pound of flesh – that primarily explains the East zone's rising share in supply of mall space. In the South, Chennai too has a similar story as far as modern retail is concerned. Having pioneered the mall concept in the country in 1999 (Spencer's Plaza) the city saw no further developments on this front till March 2006 when the Chennai City Centre mall came up. Now, several mega projects are under execution. Several mall projects have been initiated in Bangalore and Hyderabad as well, besides a lot of activity in the tier-III cities like Mysore and Koch – that's for the rising share of the South, where there is no dearth of young high income customers from the IT and ITES sectors to flock the malls. The thrust in mall activity from the North does not originate entirely from the Delhi NCR – it is the tier-III and smaller cities like Ludhiana, Jaipur, Lucknow and Sonepat that are plush with high income/high net-worth consumers and mall developers are exploiting the potential. Besides the commonly listed tier-II and tier-III cities like Indore, Nagpur, Ahmedabad, Pune, Mysore, Kochi, Hyderabad, Sonepat, Lucknow, Ludhiana and Jaipur, there are numerous smaller cities where beautiful modern malls are coming up and the cumulative impact is such that these non-extinct urban centres that accounted for only 3.57 lakh sq.ft of mall space in 2004 will boast of 4.7 crore sq.ft of mall space three years from now as compared to 3.35 crore sq.ft mall space in the NCR at the time. This development is very much in line with what the 2005 Shopping Centres & Malls in India book had predicted. Knight Frank Research indicates that the far-reaching effects of positive macro trends in changing the consumer preferences and shifting mindsets towards organised retailing experience. Besides new malls, close to 35 hypermarkets, 325 large department stores and over 10,000 new outlets are also under development. Growth in rural population and increase in agricultural incomes also offers

152

SECTION V MALL SPACE IN INDIA

considerable scope for innovative retail formats. The depth of the Indian market and the variations of the consumer profile portend a bright future for the sustained growth of the Indian retail sector. Knight Frank Research also indicates that the demand for branded products and popularity of organised formats can once again be attributed to positive macro economic growth being experienced in India presently. Increase in spending power has led to demand and the willingness to pay for new-age retailing experience. Developers and retailers alike are keen to cash on this and have unveiled expansive growth plans across cities. Organised retailing in small-town India is growing at 50-60 percent a year compared to the 35-40 percent growth in the major cities of India. About 200 tier-III cities with a population of less AVERAGE MALL SPACE PER UNIT OF LAND AREA Pune

1.50

Greater Mumbai

1.79

Sonepat

1.92

West-Other Centres

2.02

Delhi & NCR

2.05

East-Other centres

2.08

Kolkata

2.24

Bangalore

2.44

Lucknow

2.48

North-Other Centres

2.48

Nagpur

2.61

Mysore

2.70

Indore

2.84

Ahmedabad

2.96

Jaipur

3.17

Kochi

3.53

Ludhiana

3.65

Chennai

3.67

South-Other Centres

3.74

Hyderabad

4.65

The Metropolis, Gurgaon

153

SECTION V MALL SPACE IN INDIA

than two million, and another 500 rural towns have the potential to become prominent rural hubs, where organised retailing can effectively set base – each of these 700 centres will on an average be catering to about 1000 villages! A revolution indeed. Western cities in particular have more open space outside the construction or restrict the number of levels as is evident from the finding that on an average only 1.5 units of mall space correspond to one unit of land area in the case of malls in Pune. Mumbai, Sonepat, Delhi NCR also more of land as against centres like Hyderbad (1 : 4.65) and Chennai (1 : 3.67) that extract maximum mall space from the land used.

Bangalore (29.9 lakh sq.ft), DLF Bangalore (36 lakh sq.ft), DLF Hyderabad (26.5 lakh sq.ft) and a project by Kshitij Investment in Chennai (23 lakh sq.ft). Prominent among the 10 mega mall projects in the West zone are DLF's mall in Lower Parel, Mumbai (26.15 lakh sq.ft), Prozone Golden Mall in Aurangabad (21.7 lakh sq.ft) and the Mumbai-Kurla Mall project by Kshitij (26 lakh sq.ft). There are 10 such mega mall projects identified in the North zone, which include the Mall of India at Gurgaon by DLF Retail Developers (55.23 lakh sq.ft). Clearly, each of these mega malls will be a definite shopping and fun destination for enthusiastic Indian consumers in the years ahead. Happy malling all the way!

Malls in Ludhiana (1 : 0.42), Bangalore (1 : 0.48), and Hyerabad (1 : 0.53) have more free movement space within the mall as evident from the average GLA per unit of built up floor space. In contrast, there is less movement space inside the malls in Sonepat (1 : 0.94), Mysore (1 : 0.89), Indore, Jaipur, and Pune.

THE COMING OF THE MEGA MALLS This study also identifies 36 mega mall projects, each of these having a built up floor space of more than 10 lakh (one million) sq.ft. The South zone accounts for 15 of these projects, the prominent ones being the Shobha Global Mall in AVERAGE G.L.A. PER UNIT OF MAL SPACE Ludhiana

0.42

Bangalore

0.48

Hyderabad

0.53

Ahmedabad

0.60

Chennai

0.63

Greater Mumbai

0.65

Lucknow

0.65

West-Other Centres

0.66

Nagpur

0.66

Kolkata

0.67

South-Other Centres

0.67

Delhi & NCR

0.67

East-Other centres

0.69

Kochi

0.76

North-Other Centres

0.77

Pune

0.78

Jaipur

0.82

Indore

0.85

Mysore

0.89

Sonepat

0.94

The coming of the mega malls: Great India Place

154

SECTION V MALL SPACE IN INDIA

155

EAST INDIA

STATES OF EAST INDIA Chhattisgarh, Jharkhand, Bihar, Orissa, West Bengal and the NE States of Arunachal Pradesh, Assam, Tripura, Mizoram, Manipur, Nagaland and Sikkim

EAST ZONE Population-2006 (million)

Av per capita Consumption Exp (INR/year)

Consumption Expenditure 2006-07 (INR million)

Rural

Urban

Total

252

59

311

State population in lakh ('03

Rural

Urban

4,079,240

1,623,345

Largest City Population '000 ('01)

Total

Rural

5,702,585

16,184

Avg Growth Rate Of Per Capita NDP %

Urban 27,599

11

Itanagar

35.0

Per Capita Ndp As Share Of Indian Mean Index 81.3

-0.11

Share of Industry Sector In NDP 2.6

Assam

277

Guwahati

809.9

55.3

0.75

17.0

49.4

Bihar

868

Patna

1,366.4

31.4

1.98

4.1

61.1

Chhattisgarh

State Food, BeveraArunachal Pradesh

Largest City

Share of Services In NDP 60.5

217

Raipur

605.7

63.9

1.39

28.1

50.1

Jharkhand

28

Ranchi

847.1

70.9

3.05

29.8

50.5

Manipur

25

Imphal

221.5

74.2

3.08

8.7

62.1

Meghalaya

24

Shillong

132.9

88.3

4.11

8.4

66.3

Mizoram

9

Aizawl

228.3

n.v.

n.v.

0.4

73.3

Nagaland

21

Kohima

78.6

108.6

3.12

0.2

66.4

Orissa

378

Bhubaneswar

648.0

54.5

2.42

13.7

49.4

Sikkim

6

Gangtok

29.2

104.4

5.09

7.3

71.2

33

Agartala

190.0

95.4

8.02

4.4

68.9

828

Kolkata

4,572.9

99.4

5.51

13.3

58.7

Tripura West Bengal

Source: Census of India 2001, RBI Citypopulation.db, DB Research

ASSAM

A

ssam is a state rich in natural resources like natural oil, natural gas, coal, rubber, tea and minerals like granite, limestone and kaolin. The gateway to the northeastern part of the country, Assam is the largest economy of the region. It is primarily an agrarian economy with more than 70 percent of its population engaged in agriculture and allied activities. Assam is known for the tea and petroleum sectors.

ECONOMIC FACT FILE Capital:

Dispur

Area:

78,438 sq.km

Population:

28.9 million (2006)

Literacy:

63.3%

National Highway Length: 2,034 km Rail Length:

2,435 km

International Airport:

Guwahati

Domestic Airports:

Guwahati, Tezpur, Jorhat, Dibrugarh, Silchar and North Lakhimpur

Key Industries:

Power and energy Tea Agro-based Industry

307

CHHATTISGARH

T

he newly created state of Chhattisgarh was created out of the south-eastern districts of undivided Madhya Pradesh on November 2000. The state is rich in minerals and natural resources, with reserves of coal, iron ore, bauxite and limestone. The key economic sectors are cement, mining, steel, aluminium and power. • Large mineral resources for development of cement, steel, aluminium and electricity generation

ECONOMIC FACT FILE Capital:

Raipur

Area:

1,35,191 sq.km

Population:

22.8 million (2006)

Literacy:

65%

NSDP:

US$3.3 billion

NSDP Growth:

2% (10 years)

Per Capita Income:

US$264

National Highway Length:

1,827 km

Rail Length:

1,180 km

Domestic Airport:

Raipur

Key Industries:

Cement, Mining, Iron and steel, Aluminium

Industries with growth potential:

Power, Infrastructure

DOING BUSINESS IN CHATTISGARH Department Industries/Land revenue

Agnecy District Investment Promotion Committee

• Electricity surplus state • Low land and labour costs

Timelines Land Transfer: Government revenue land 45 working days from date of application Through private negotiations 30 working days Any clearances from local government/statutory requirements of state government - 7 days

InfrastructureElectricity/Water

District Investment Promotion Committee

45 working days or 75 working days from the identification of the site, whichever is earlier

Central Government

District Investment Promotion Committee

Recommendations to Central Government, if required - 45 working days or 75 working days from the identification of the site, whichever is earlier

Source: PwC research

308

JHARKHAND

O

ne of the country's newest states, Jharkhand was carved out of the eastern region of erstwhile Bihar. The state accounts for about 40 percent of India's mineral deposits and is the sole producer of coking coal, uranium and pyrite. Jharkhand also ranks as the first in the production of coal, mica, kyanite and copper in India. • Strong mineral resource base, together with industrial infrastructure

ECONOMIC FACT FILE Capital:

Ranchi

Area:

79,714 sq.km

Population:

29.6 million (2006)

Literacy:

54.1%

National Highway Length:

5,805 km

Domestic Airport:

Ranchi

Key Industries:

Mining and Mining-based Industries Agro-based Industry

Industries with growth potential:

Forest-based Industry Food Processing Industry Tourism

COST OF SETTING UP BUSINESS IN JHARKHAND Manufacturing Land (US$/hectare) Labour Cost (US$/man year worked)

69,541 2,090

• Focus areas include mining and geology

Services Occupation Costs (US$/sq ft/year)

Jharkhand Fact Box

Employee Cost (US$/man year) Software Developers Team Leads Architects Project Managers

5,784 13,522 18,965 29,856

Common Heads Cost of Capital (Prime lending rate, per cent) Electricity (US$/1000 KWh)

10.25 11.00 68.9

• Resource-rich state with waterfalls, rivers, huge coal beds etc. • Immense potential for both hydel and thermal power projects

Source: Indiastat, Jharkhand state

• Large reservoir of technical institutes offering trained industrial manpower

309

13.2

ORISSA

L

ocated on India's East coast, Orissa is rich in mineral resources, such as coal, iron-ore and bauxite. The state is poised to emerge as the metals, mining and a manufacturing hub of the country. The major industrial clusters in the state are the Jajpur region, the Baspani-Berbil region and the Talcher region.

• Proximity to China and South East Asia • Large mineral resources, particularly coal (25% of India's total), iron-ore (25%) and bauxite (50%) • First state in the country to restructure and privatise the electricity sector • Major investment announced by global and Indian investors in steel and aluminium industry

ECONOMIC FACT FILE Capital:

Bhubaneswar

Area:

1,55,707 sq.km

Population:

39.1 million (2006)

Literacy:

63.6%

Human Development Index:

0.404

NSDP:

US$4.9 billion

NSDP Growth:

4.8%

Per Capita Income:

US$230

National Highway Length:

3,704 km

Rail Length:

2,401 km

Domestic Airport:

Bhubaneswar

Key Industries:

Mining, Iron and steel, Aluminium

Industries with growth potential:

Power, IT and ITES, Tourism, Infrastructure

DOING BUSINESS IN ORISSA Procedure

Timelines

Building permission

10 days

Power connection

7 days

Allotment of land

21 days

Water connection

21 days

Sanction of loan from IPICOL

30 days

Pollution clearance

10 - 60 days (based on type of industry)

Source: PwC research

• Potential to become a major coal-based electricity generation region • Potential to develop tourism and IT/ITES industries

310

WEST BENGAL

W

est Bengal lies in the mineral-rich eastern region of India and has rich reserves of coal, limestone, dolomite and granite. The state is the commercial and business hub for eastern and north-eastern regions of the country. Apart from Kolkata, the main commercial and financial centre of the East zone, other important centres of the state include: the Haldia region, the Asansol-Durgapur region, the Falta SEZ and eight AgriExport Zones. · Third largest economy in India · State with surplus electricity generation capacity

ECONOMIC FACT FILE Capital:

Kolkata

Area:

89,000 sq.km

Population:

85.76 million (2006)

Literacy:

68.6%

Human Development Index:

0.472 (All India Rank 8th)

NSDP:

US$21.5 billion

NSDP Growth:

8% (10 years)

Per Capita Income:

US$395

National Highway Length:

2,325 km

Rail Length:

3,681 km

International Airport:

Kolkata

Domestic Airport:

Bagdogra

Key Industries:

Petroleum and petrochemicals, Iron and steel Agro-based, Leather

Industries with growth potential:

IT and ITES, Tourism

DOING BUSINESS IN WEST BENGAL Department

Timelines

Environment

• No objection Certificate from Pollution Control Board - 15 days

· Largest producer of vegetables and fruits, second largest producer of tea and paper in India

Industries

• Permission from Chief Inspector of Factories - 7 days

Health and Fire

• Health Licence - 3 days • Fire Licence - 7 days

Power

• Electrical Connections - 36 days

· Proximity to mineral resources and international markets through ports

Revenue

• Land - 75-90 days

WBIDC

• Allotment of land - 30-45 days

Source: Govt of West Bengal

· Largest talent pool and low cost of operations

311

MALL DEVELOPMENTS IN THE EAST

T

he East Zone had its first mall in 2002 with The City Centre from Bengal Ambuja Metro Development Ltd. Located in Salt Lake, this super structure was built on a 2.18 lakh land area with 4.5 lakh square feet of mall space, out of which three lakh square feet was the gross leasable area. In the next two years, by 2004, there were four more malls operational in the East, a total of three in Kolkata (Forum, Metropolis and Fort Knox) and one each in Bhubaneshwar (Forum Mart by developer Susam Properties) and Guwahati (Hub by developer Mridul Properties). Malling activity has picked up since then and by the end of this year there will be a total of 14 malls operational in the East, of which nine are located in Kolkata and five in the other major urban centres. Together, these 14 malls will offer 11.91 million square feet of quality retail space.

EAST ZONE: Growth in Mall Space

Number of Malls

1574616000

70

14000 12000

11907 47

50

9463 39

40

10000 8000

32 30

6000

20

1009

450

2002

8

6

5 1

0

4000

14 3384

10

'000 sq.ft

Numbers

60

2000 1244

1059

0 2004

2005

2006

Number of Malls

2007 E

2008*

2009*

2010**

Total Mall Space ('000 sq.ft)

The average ratio of land area to mall space for Kolkata is as 1 : 2.24, while for the other urban centres it is 1 : 2.08 ; which is indicative of higher land prices in Kolkata, and therefore lesser open space. In the case of the prevailing average ratio of mall space to GLA, Kolkata malls have more movement space (1 : 0.67) as compared to the other centres where for every one square feet of mall space there is slightly larger GLA (1 : 0.69).

Going by the under-construction projects and those that have been announced, there will be a total of 47 malls operational in the East by year 2010, of which 25 will be in Kolkata and 22 in the other major urban centres. Besides Kolkata, maximum activity on this front is happening in Asansol, Guwahati, Raipur and Siliguri.

Kolkata

80

2002

2004

2005

2006

2007 E

2008*

2009*

2010**

1

3

3

4

9

19

21

25

Total Mall Space ('000 sq.ft)

450

778

778

858

2638

5491

6423

7977

Total Land Area ('000 sq.ft)

218

347

347

383

1177

2451

2867

3561

Total GLA ('000 sq.ft)

300

522

522

576

1771

3687

4312

5356

Other centres 2

3

4

5

13

18

22

Total Mall Space ('000 sq.ft)

Number of Malls

231

281

386

746

3972

5484

7769

Total Land Area ('000 sq.ft)

111

135

186

359

1911

2639

3739

Total GLA ('000 sq.ft)

159

193

265

513

2730

3769

5340

1

5

6

8

14

32

39

47

450

1009

1059

1244

3384

9463

11907

15746

East Zone Number of Malls Total Mall Space ('000 sq.ft) Total Land Area ('000 sq.ft)

218

458

482

569

1536

4363

5506

7299

Total GLA ('000 sq.ft)

300

681

715

841

2284

6417

8082

10695

E: estimated

* under-construction

** announced

312

Mall Projects - East Zone City

Developer

Mall Name

Gross Total Total Land Area Mall Space Leasable (sq.ft) (sq.ft) Area (sq.ft)

Location

Kolkata

Aster Group

Ozone Mall

VIP Road

43,000

150,000

Kolkata

Aster Group

Ozone Mall

Madhyagram,Sodepur Jessore Rd Xng

74,000

200,000

145,000

Status

Operational From

Construction

2008-Aug

Planned

2010

Kolkata

Avani Projects & Infrastructure Ltd

Avani Europa

Jessore Road

196,694

440,000

Construction

2009

Kolkata

Avani Projects & Infrastructure Ltd

Avani Renaissance

Behala

170,000

477,000

Planned

2010

Kolkata

Avani Projects & Infrastructure Ltd

Avani Riverside

Howrah

170,000

492,000

Kolkata

Bengal Ambuja Metro Development Ltd

City Centre

Salt Lake

217,800

450,000

217,800

Kolkata

Bengal Ambuja Metro Development Ltd

City Centre

New Town, Rajarhat

Kolkata

Bengal Greenfields

The Terminus

Kolkata

Kolkata

Bengal Sheltar Housing Devlpt Ltd

Barnaparichoy

College Street

Kolkata

Calcutta Metropolitan Group Ltd

The Metropolis

Chak Garia

800,000

300,000

Construction

2009

Operational

2002-Jul

550,000

350,000

Construction

2008-Jan

386,558

386,558

Planned

2010-Jan

490,000

Announced

2010

141,660

Operational

2004-Dec

Kolkata

Fort Group

Fort Knox

Camac Street

80,000

65,000

Operational-Part

2006-Jun

Kolkata

Fort Group

Lee-II

Bhawanipur

47,000

30,000

Construction

2007-Oct

Kolkata

Hoogly Investments

E -Mall

Kolkata

45,000

45,000

Construction

2007-Sep

Kolkata

J.J.Realtors Pvt Ltd

Ffirangi Bazaar

EM Bypass, opp Salt Lake Stadium

57,000

180,000

148,000

Construction

2008

Kolkata

J.J.Realtors Pvt Ltd

Shop Out

Raja Subodh Chandra Mullick Rd

23,100

52,000

44,570

Construction

2008

Kolkata

Kshitij Investment Advisory Co. Ltd

Kolkata Mall I

Jessore Road

260,000

Construction

2008-Apr

Kolkata

Kshitij Investment Advisory Co. Ltd

Kolkata Mall II

Strand Road

455,000

Construction

2008-Jun

Kolkata

Kshitij Investment Advisory Co. Ltd

Kshitij Mall

VIP Road

Construction

2008-Sep

Kolkata

Mani Square Pvt Ltd

Mani Square

Off EM Bypass, near Bengal Chem

184,694

600,000

381,000 300,000

Construction

2007-Oct

Kolkata

Merlin Projects Ltd

Acropolis

Rajdanga Mn Rd, PS Kasba

86,400

427,200

161,460

Construction

2008

42,000

Kolkata

Merlin Projects Ltd

Homeland

Ashutosh Mukherjee Rd

105,000

63,000

Kolkata

South City Projects (Kolkata) Ltd

South City Mall

375, Prince Anwar Shah Road

216,000

1,025,000 700,000

80,724

Kolkata

Sunsam Properties (P) Ltd

Forum

Kolkata

Kolkata

Sunsam Properties (P) Ltd

Forum courtyard

Kolkata

Kolkata

Venkatesh Foundation Pvt. Ltd

Lake Mall

Rashbehari Avenue

313

48,255

Operational

2007-Apr

Construction

2007-Dec

186,116

Operational

2003-Mar

153,000

Construction

2008-Dec

Construction

2008-Apr

245,000

170,000

Mall Projects - East Zone City

Developer

Mall Name

Gross Total Total Land Area Mall Space Leasable (sq.ft) (sq.ft) Area (sq.ft)

Location

Asansol

Avani Projects & Infrastructure Ltd

Galaxy Mall

Burnpur Road, Chitra More

Asansol

Bengal Shristi Infrastructure Devlpt Ltd

Asansol Centrum

Shristinagar, New Asansol

Barrackpore

Hoogly Investments

B-Mall

Barrackpore

Bhilai

EWDPL India Pvt Ltd

Treasure Island

Opp. Surya Vihar, Junwani Bhubaneswar

74,843

Bhubaneswar Sunsam Properties (P) Ltd

Forum Mart

Dhanbad

Prabhatam Buildwell Limited

Grand International Main Barbada Road, Mall Dhaiya

Durgapur

Bengal Shristi Infrastructure Devlpt Ltd

Dreamplex

Durgapur City Center

Guwahati

Avani Projects & Infrastructure Ltd

Avani Atria

Zoo Rd-GS Rd Xing, Dispur

138,240

Guwahati

BK Builders and Enterprises

Kay'M Plaza

Ganeshguri,GS Road, Dispur

Operational From

240,000

Planned

2009

600,000

Announced

2009

170,000 208,960

Status

475,120

Planned

2010

375,900

Construction

2008-Dec

53,887

181,035

Operational

2004

109,000

475,000

336,244

Construction

2008-Dec

105,000

70,000

Operational

2006-Jun

362,000

Planned

2009

13,500

70,000

Construction

2008-Jan

Guwahati

Mridul Properties

Hub

Guwahati

Operational

2004

Haldia

Bengal Ambuja Metro Development Ltd

City Centre

Haldia

261,360

465,000

250,000

Announced

2010

Jabalpur

EWDPL India Pvt Ltd

Treasure Island

Sukhsagar Valley, Polipather

139,600

572,800

480,900

Construction

2008-Oct

35,000

140,000

Planned

2009

Krishnanagar Shristi Infrastructure Develpt Corpn Ltd

50,000

Krishnagar Centrum Krishnanagar, West Bengal

Raipur

Avinash Developers Pvt. Ltd

MagnetoThe Mall

N.H.-6, Labhandi

219,240

618,000

410,565

Construction

2008-Jun

Raipur

Bengal Ambuja Metro Development Ltd

City Centre

Raipur

566,280

650,000

500,000

Announced

2010

Raipur

City Mall Developers Pvt. Ltd.

City Mall 36

N.H.-6, G.E.Road,

500,000

360,000

250,000

Operational

2007-Jul

Raipur

EWDPL India Pvt Ltd

Treasure Island

Opp. Agricultural College, NH-6

320,000

730,000

593,000

Construction

2008-Dec

Ranchi

Jokhiram Durgadutt

JD High Street

Opp Gel Church Complex, Main Rd

22,144

110,000

70,000

Construction

2008

Raniganj

Bengal Shristi Infrastructure Devlpt Ltd

170,000

Announced

2009

Siliguri

Bengal Ambuja Metro Development Ltd

435,600

1,000,000 475,000

Announced

2010

30,000

50,000

Raniganj Square, Raniganj City Centre

Uttorayan (NH 31)

Siliguri

Kshitij Investment Advisory Co. Ltd

Siliguri Mall

Main Sevoke Road

Siliguri

SkyStar Shopping Pvt Ltd

Sunflower Mall

Siliguri

314

175,000 45,000

Planned

2008-Jan

Operational

2005-Aug

The Jones Lang LaSalle Meghraj classification of India Retail, The India 50, places Kolkata in the 'transitional' centre category, while Bhubaneshwar and Jamshedpur are classified as Emerging centres. Ranchi, Guwahati, Jabalpur, Asansol and Dhanbad are, on the other hand, classified as 'nascent' retail centres in the East Zone.

factor that large retailers find attractive about Kolkata market is the high retail spending that has been witnessed in their existing stores, both standalone and in the operational malls. Increased consumer demand, improved sourcing options and large availability of real estate have created the foundation for significant growth of organised retail in the city.

Kolkata – Retail Market Overview: 2006

Central Business District (CBD)

Current Scenario

The prime locations in Kolkata where retail developments have flourished are concentrated in the CBD locations of Elgin Road, Camac Street, Theater Road, Russel Street, Park Street, AJC Bose Road and Landsdowne Road. Though Kolkata lacks a true high street till date, Elgin Road is headed to become an upmarket high street. Leading this transformation is the Forum Mall (1,86 lakh sq.ft.) which came up in early 2003. Forum houses the Inox multiplex besides a host of high-end brands.

Over the last three-four years Kolkata has witnessed increased activity in the organised retail segment, thanks to the lucrative incentive packages doled out by the West Bengal State government in order to attract industry and capital to the City and other regions of the state. The IT/ITES, services and manufacturing sectors are all picking up, which in turn is creating more employment and higher income for the populace, mostly for the young. This is translating into higher disposable incomes and an earning for quality products, services, which the organised retail fraternity seems determined to provide.

The revamping of New Market, near Chowringee would release an additional retail space of approximately 3.5 lakh sq.ft. in the CBD by the year 2010. New malls are being planned and proposed on AJC Bose Road, Chowringee, Strand Road and Park Street. This will translate in approximately 17.1 lakh sq.ft. of fresh retail space in the CBD micro-market by 2008.

The most pronounced regions of new real estate growth in Kolkata are East and South-East corridors. The demand for retail and office space, though still high in the Central Business District, is also spreading to areas like Rajarhat, Sector V, Salt Lake and the Eastern Metropolitan Bypass (EM Bypass). Currently, the retail sector in the city is a mix of local retailers and many national and international brands. One important

Distribution of Current Retail Space in Kolkata

East 21% CBD 45%

South 15%

North 19% Total space: 2.11 mn sq. ft Source: Kinight Frank Research

315

Kolkata Average Capital Values ( Rs. / Sq.Ft.) Business District

Mar-02

Mar-04

Mar-05

Mar-06

Mar-07

Park Street/ Camac Street

3,300

Mar-03 3,100

3,100

3,100

6,240

6,550

Jun-07 7,300

Dalhousie Square

2,900

2,500

2,500

2,500

4,235

4,350

4,500

Salt Lake

2,300

2,500

2,500

2,500

4,300

4,909

4,950

Park Circus Connector

2,275

2,500

2,800

3,100

4,720

5,975

6,000

Source: Cushman & Wakefield

Kolkata Commercial

Supply

As per information with Cushman & Wakefield, in the first half of 2007 has seen limited addition (approximately 5 lakh sq.ft) of commercial space in the City, most of which is in Rajarhat and Salt Lake. But on-going projects suggest that by the end of the year Kolkata is likely to have an additional 32.5 lakh sq.ft of commercial space.

Geographical extent of the city is increasing; with development happening in all suburbs and over five million sq.ft of fresh office space is expected to be added in 2007. Significant activity is happening in the eastern suburbs of Kolkata, i.e, areas of Salt Lake and New Town with most major developers who have a pan India presence and other international developers coming establishing their footprint.

Also, the 130 acre SEZ coming up at the Bantala IT Park where companies like Cognizant, Tech Mahindra, Patni Computers are setting up campuses is likely to go abuzz by 2008-end. This will generate additional demand for retail as well.

FUTURE OUTLOOK Absorption The year 2006 has witnessed absorption equivalent to and touched nearly four million sq.ft and as per estimates for 2006, with 1.92 million sq.ft of the total supply coming online in 2007 is already committed. Kolkata is expected to witness absorption of 4.89 million sq.ft in 2007. This would maintain the rentals at the current levels in the short term as developers do tend to delay the completion of projects in which spaces haven’t been leased pre-completion of the project. There have been a few large transactions towards the end of 2006 and in case that trends continues it will imbalance the demand and supply equation.

(commercial info: DTZ)

GROWTH DRIVERS Demand Commercial space absorption has steadily grown in Kolkata ever since the change in leadership of the state in 2001. Conducive policy framework with proactive support from the sate government and bureaucracy has improved perception of the general socio-political environment in the city and the State on the whole.

Supply The Kolkata office space market is expecting an estimated supply of 8.1 million sq.ft in 2007. Rentals Rental values in the suburbs of Salt Lake and Rajarhat are expected to remain stable in the short term. However, if the increase in demand is greater than expected, then developers, who have delayed construction activity, would not be able to deliver their projects in time to match the demand. This could lead to a short-term supply crunch and push the rental and capital values upwards. Kolkata requires significant piling work to strengthen the foundation due to the soft alluvial soil, which adds three to five months to the normal construction time. Bhubaneswar India's IT-ITES sector as also established retail and retail players and mall developers are now exhibiting interest in exploring destinations other than the seven major cities, namely, Bangalore, NCR (Delhi), Mumbai, Hyderabad, Chennai, Pune and Kolkata. Bhubaneshwar is one of these emerging centres. 316

Bhubaneshwar, Orissa's major business and trading centre, is one out of the three planned capital cities of India. The economy of the city is dominated by the service sector. The new city was planned on the northwest side of the old city located along the coast. At present though the real estate prices in the city are quite stable, the city is witnessing a lot of activity across various real estate segments. The state government is taking serious initiatives towards the development of infrastructure and IT/ITES industry in the state. Bhubaneshwar has already emerged as an IT destination on the countries map. Majority of the residential & IT/ITES developments in the city are concentrated on the northern side of the city at Chandrashekharpur and the surrounding areas, where an IT Park has come up. The retail and commercial property markets are centered in old city, which is the commercial hub of the city. A buoyant real estate (in the residential and commercial real estate categories) and presence of few national / international retail brands in the city provides opportunities to various brands and projects bright prospects for retail real estate development in the city. The potential areas for retail development

are along the BhubaneshwarCuttack Highway and Chandrashekharpur in the vicinity of the IT/ITES Park. As of now, there is only one mall in the city, the Forum Mart, which became operational in 2004. Raipur Raipur, the capital city of Chhattisgarh, is situated right in the centre of the state, with Mahanadi River to its east and thick forests to the south. Raipur is one of the biggest iron markets of the country and is also a major centre of trade and business activities of the entire Chhattisgarh region, which is popularly known as the 'Rice bowl of the country'. The city has also been referred to as the 'agricultural-processing and saw-milling town'. The real estate market received an impetus after the city became the capital of the newly formed Chhattisgarh State. Raipur has a dense core dominated with retail, commercial and institutional activities. The GE Road (NH-6) is the main spine of the city and major real estate development is happening along this corridor. The retail real estate in Raipur can be classified in to traditional specialised markets and the newly emerging retail 317

areas. The newly emerging retail areas are along the GE Road with the stretch between Tati Bandh to Teli Bandha emerging as the most active retail destination in the city. Sharda Chowk and Jaistambh Chowk have emerged as the hub of retail destinations in the city. Raipur has seen quite a few shopping centers (operational and under construction) in the recent years. The majority of these are located on the GE Road and Ring Road 1. The most prominent is the Lal Ganga City Mall, which is regarded as a landmark development in organised mall type retail development in the city. It is located on GE Road near Jaistambh Chowk. There are three more malls under construction and by 2009 there will be more than 23 lakh sq.ft of mall space available in the city. With governments plan for development of the new capital city, the real estate sector is sure to witness an upward trend in all the categories in the next two years. The city is still a virgin market for international brands in retail. In the present Raipur, G E Road would remain as the most important corridor for retail real estate development.

(EAST)

MALL PROFILE Avani Projects & Infrastructure Ltd

Aster Group

OZONE MALL 1

OZONE MALL 2

AVANI RIVERSIDE

Location: VIP Road City: Kolkata Status: Under-Construction Operational From (Planned): August, 2008 Total Land Area: 43,000 sq.ft Total Mall Space: 1,50,000 sq.ft Gross Leasable Area (GLA): 1,45,000 sq.ft No. of Floors: B+G+4 CAM Charges: At Actuals Rental Model: Fixed Minimum Rent Atrium Area: 8,000 sq.ft Shopping Area: 88,000 sq.ft Food Court Area: 14,500 sq.ft Leisure & Entertainment Area: 42,000 sq.ft Services Area: 3,000 sq.ft Parking Area: 23,000 sq.ft Space for No of 4-wheelers: 250 Space for No of 2-wheelers: 50 No. of Levels: 6 No. of Escalators: 6 No. of Lifts: 3+1 Creche Area: 1,100 sq.ft Kids Zone Area: 6,000 sq.ft Competitive Advantage: India's First Easy Mall with frontage of 255 ft on the busiest road. Excellent Catchment Catchment Area: Baguihati, Lake Town, Teghoria, Hatiara, Kestopur, Dum Dum, Kalindi, Nagerbazaar Other Shopping centres/malls in 6 km radius: City Centre 2, Diamond City

Location: Madhyamgram (Sodepur Road & Jessore Road Crossing) City: Kolkata Status: Planned Operational From (Planned): 2009 Total Land Area: 74,000 sq.ft Total Mall Space: 2,00,000 sq.ft Gross Leasable Area (GLA): 2,00,000 sq.ft No. of Floors: B+G+5 CAM Charges: At Actuals Rental Model: Fixed Minimum Rent Atrium area: 10,000 sq.ft Shopping Area: 1,05,000 sq.ft Food Court Area: 20,000 sq.ft Leisure & Entertainment Area: 10,000 sq.ft Services Area: 5,000 sq.ft Parking Area: 35,000 sq.ft Space for No of 4-wheelers: 400 Space for No of 2-wheelers: 150 No. of Levels: 6 No. of Escalators: 6 No. of Lifts: 4+1 Creche Area: 2,000 sq.ft Kids Zone Area: 6,500 sq.ft Competitive Advantage: Easy Mall, strategically located, with an excellent catchment. Catchment Area: Madhyamgram, Sodepur, Badu, Birati, Barasat, Bangladesh Other Shopping centres/malls in 6 km radius: Shisir Kunj

Location: Howrah City: Kolkata Status: Under-Construction Operational From (Planned): 2009 Total Land Area: 1,70,000 sq.ft Gross Leasable Area: 4,92,000 sq.ft No. of Floors: 2B+G+ 3 Leasing Agents/Companies: Trammell Crow Meghraj CAM Charges/month: At Actuals Rental Model: Fixed Minimum Rent Space for 4-wheelers: 450 (approx) No. of Escalators: 10 No. of Lifts: 8 Kids'/Creche Area: On Third Floor Competitive Advantage: First mega mall in Howrah, with Pantaloons, Big Bazaar & Fame Multiplex as anchors Location Considerations: Good connectivity with Howrah and Kolkata, with untapped catchment area at Howrah. Market Area: Howrah, Shibpur, Kolkata Other Shopping centres/malls in 6 km radius: None Mall Management: Outsourced TENANT MIX Anchor 1: Pantaloons (Department Store) Area/Status: 32,000 sq.ft/Booked Anchor 2: Big Bazaar (Hypermarket) Area/Status: 77,000 sq.ft/Booked Anchor 3: Fame Multiplex Screens/Status: Four Screens/Booked Other Brands/Retailer: Adidas, Archies, Biba, Cellucom, Cottons, Gini & Jony, Levis, Lee Cooper, My Dollar Store, Welspun, Woodland etc.

319

(EAST)

MALL PROFILE

Avani Projects & Infrastructure Ltd .

AVANI EUROPA

AVANI RENAISSANCE

GALAXY MALL

Location: Jessore Road City: Kolkata Status: Under-Construction Operational From (Planned): 2009 Total Land Area: 1,96,694 sq.ft Gross Leasable Area: 4,40,000 sq.ft No. of Floors: 2B+G+5 Leasing Agents/Companies: Trammell Crow Meghraj/N K Realtors/Ashray CAM Charges: At Actuals Rental Model: Fixed Minimum Rent Space for 4-wheelers: 400 (approx) No. of Escalators: 10 No. of Lifts: 6 Kids' Play/ Creche Area: On Fourth Floor Competitive Advantage: Strategically situated between Lake Town and Bangur. Accessible by all modes of transport. Location Considerations: Strategic positioning with parts of Salt Lake, Bangur and Lake Town as catchment areas. Market Area: Lake Town, Bangur, Salt Lake, North Kolkata Other shopping centres/malls within 6km: Diamond City North, Mani Square Mall Management: Outsourced TENANT MIX Anchor 1: Magnet Hypermarket Area/Status: 60,000 sq.ft/Booked Anchor 2: Fame Multiplex Screens/Status: Four Screens/Booked Anchor 3: Max Lifestyle Department Store Status: Under Negotiation Anchor 4: Croma (Consumer Electronics) Status: Under Negotiation Anchor 5: Odyssey (Book Store) Status: Under Negotiation Anchor 6: Orama (Under Negotiation) Anchor 7: House Plus (Home Store) Status: Under Negotiation Other tenants: Adidas, Archies,

City: Kolkata Status: Planned Operational From (Planned): 2009 Total Land Area: 1,70 000 sq.ft Gross Leasable Area (GLA): 4,77,000 sq.ft No. of Floors: 2B+G+6 Leasing Agents/Companies: Trammell Crow Meghraj/NK Realtors CAM Charges: At Actuals Rental Model: Fixed Minimum Rent Space for No of 4-wheelers: 400 (approx) Kids' Play/Creche Area: Proposed on Fourth Floor Competitive Advantage: Only mall proposed in this part of the city. Densely populated surrounding areas, with an increasing number of huge residential complexes coming up in the near future. Considerations on choice of Location: This is literally an untapped region, with additional residential complexes coming up, assuring a good footfall and potential catchment pockets for a mall. Market Area: Behala, South Kolkata Other Shopping centres/malls in 6 km radius: None

Location: Burnpur Road, Chitra More City: Asansol Status: Planned Operational From (Planned): 2009 Total Land Area: 74,843 sq.ft Gross Leasable Area (GLA): 2,40,000 sq.ft No. of Floors: 2B+G+5 Leasing Agents/Companies: NK Realtors CAM Charges: At Actuals Rental Model: Fixed Minimum Rent Space for No of 4-wheelers: 150 (approx) No. of Escalators: 12 No. of Lifts: 4 Kids' Play/Creche Area: Proposed on the Fourth Floor Competitive Advantage: First world class shopping mall in Asansol, with all modern amenities. Considerations on choice of Location: Only mall offering in Asansol for the city's brand-conscious consumers. Market Area: Entire Asansol – the mall being the city's first. Other Shopping centres/malls in 6 km radius: Bengal Shrishti Mall Management: Outsourced

320

Avani Projects & Infrastructure Ltd.

Avinash Developers Pvt. Ltd.

(EAST)

MALL PROFILE Bengal Ambuja Metro Development Ltd.

AVANI ATRIA

MAGNETO THE MALL

CITY CENTRE

Location: Junction of Zoo Road and GS Road City: Guwahati Status: Planned Operational From (Planned): 2009 Total Land Area: 1,38,240 sq.ft Gross Leasable Area (GLA): 3,62,000 sq.ft No. of Floors: B+G+5 Leasing Agents/Companies: Tramell Crow Meghraj/NK Realtors/Ashray CAM Charges: At Actuals Rental Model: Fixed Minimum Rent Space for No of 4-wheelers: 300 (approx) No. of Escalators: 12 No. of Lifts: 4 Kids' Play/Creche Area: Proposed on Fourth Floor Competitive Advantage: Largest mall located on Guwahati's main high street, with access from both GS Road and Zoo Road. Considerations on choice of Location: Located at the most ideal position, with access from both commercial as well as residential ends of the city. Market Area: Guwahati and other parts of North East India. Other Shopping centres/malls in 6 km radius: Dona Plaza, Brand Station, Hub, Shohum Shoppee Mall Management: Outsourced

Location: NH 6, Labhandi City: Raipur Status: Under-Construction Operational From (Planned): June, 2008 Total Land Area: 2,19,240 sq.ft. Total Mall Space: 6,18,000 sq.ft. Gross Leasable Area: 4,10,565 sq.ft No. of Floors: Basement + 5 Floors Leasing Agents/Companies: Franchise India Property Services/ICICI Property Services CAM Charges: Rs.18/sq.ft/month Rental Model: On Lease Atrium Area: 40,000 sq.ft. Shopping Area: 3,01,502 sq.ft. Food Court Area: 30,000 sq.ft. Leisure/Entertainment Area: 46,000 sq.ft. Services Area: 15,000 sq.ft. Parking Area: 1,86,000 sq.ft Space for No of 4-wheelers: 700 cars Space for No of 2-wheelers: 1,500 No. of Escalators: 6 pairs No. of Lifts: 8 Lifts Kids' Play/Creche Area: 5,000 sq.ft. Location Considerations: Prime area on NH 6, 4-lane expressway near mal Catchment Area: Purely residential Other shopping centres/malls in 6 km radius: City 36 & Treasure Island Competitive Advantage: First of its kind in Chhattisgarh; multiplex and hypermarket, proposed adjacent amusement park and Taj luxury hotel (125 rooms). TENANT MIX Anchor 1: PVR Ltd (Multiplex) Screens/Status: 4 Screen/Booked Anchor 2: RPG Group, Spencer's Supermarket

Location: Salt Lake City: Kolkata Status: Operational Operational From: July 2002 Total Mall Investment: Rs. 120 crore Total Land Area: 2,17,800 sq.ft Total Mall Space: 4,50,000 sq.ft Gross Leasable Area: 3,00,000 sq.ft No. of Floors: 3 CAM Charges: Rs.15/sq.ft/month Shopping Area: 2,70,000 sq.ft Food Court Area: 12,000 sq.ft Leisure/Entertainment: 35,000 sq.ft Space for no. of vehicles: 1,200 No. of Escalators: 6 No. of Lifts: 15 Competitive Advantage: First horizontal mall in Eastern India Catchment Area: Entire Salt Lake Average Footfalls on Week days: 25,000 - 30,000 Average Footfalls on Weekends: 40,000 - 50,000

321

TENANT MIX

Anchor 1: Shoppers' Stop (Department Store) No of Floors/Status: 2/Operational Anchor 2: C3 Supermarket No of Floors/Status: 1/Operational Anchor 3: Inox (Multiplex) Category/Format: Screens/Status: 4 Screens/Operational Anchor 4: Wills Lifestyle (Fashion Store) Status: Operational Other Brands/Retailers: Arrow, Blackberrys, Zodiac, Spykar, Lilliput, Moustache, Planet M, Bose, Woodland, Triumph, Pizza Hut etc.

(EAST)

MALL PROFILE

Bengal Ambuja Metro Development Ltd.

CITY CENTRE

CITY CENTRE

CITY CENTRE

Location: New Town, Rajarhat City: Kolkata Status: Under Construction Operational From: January 2006 Total Mall Investment: Rs.150 crore Total Land Area: 2,17,800 sq.ft Total Mall Space: 5,50,000 sq.ft Gross Leasable Area: 3,50,000 sq.ft CAM Charges: Rs.15/sq.ft/month Shopping Area: 3,00,000 sq.ft Food Court Area: 16,500 sq.ft Leisure/Entertainment : 45,000 sq.ft Space for No of vehicles: 1,800 No. of Escalators: 6 No. of Lifts: 17 Kids' Zone Area: 11,500 sq.ft Competitive Advantage: Butterfly Park Catchment Area: North Kolkata and Rajarhat TENANT MIX Anchor 1: Pantaloons Department Store Status: Booked No of Floors: 1 Anchor 2: Inox (Multiplex) Status: Booked No. of Screens/Total Capacity: 4 Screens/1,200 Seats Anchor 3: Galaxy Entertainment Status: Booked No of Floors: 1 Anchor 4: Croma (Consumer Electronics Store) Status: Booked No of Floors: 1

Location: Haldia City: Haldia Status: Launching Shortly Operational From (Planned): NA Total Land Area: 2,61,360 sq.ft Total Mall Space: 4,65,000 sq.ft Gross Leasable Area (GLA): 2,50,000 sq.ft Shopping Area: 2,00,000 sq.ft Food Court Area: 21,000 sq.ft Leisure & Entertainment Area: 35,000 sq.ft Space for No. of vehicles: 450 No of Escalators: 6 Competitive Advantage: Piazza Mall Catchment Area: Entire Haldia TENANT MIX Anchor 1: Reliance Hypermarket Status: Booked No of Floors: 1 Anchor 2: Pantaloons (Department Store) Status: Booked No of Floors: 2 Anchor 3: Inox (Multiplex) Status: Booked No. of Screens/Total Capacity: 4 Screens/1,000 Seats

Location: Uttorayan (NH 31) City: Siliguri Status: Launching Shortly Total Land Area: 4,35,600 sq.ft Total Mall Space: 10,00,000 sq.ft Gross Leasable Area (GLA): 4,75,000 sq.ft No. of Floors: 5 CAM Charges: Rs.14/sq.ft/month Shopping Area: 3,00,000 sq.ft Food Court Area: 28,000 sq.ft Leisure & Entertainment Area: 48,000 sq.ft Space for No. of vehicles: 800 No of Escalators: 6 Competitive Advantage: Open format, horizontal mall Catchment Area: Siliguri and adjoining areas TENANT MIX Anchor 1: Pantaloons (Department Store) Status: Booked No of Floors: 2 Anchor 2: Inox (Multiplex) Status: Booked No. of Screens/Total Capacity: 4 Screens/1,200 Seats Anchor 3: Globus (Department Store) Status: Under negotiation

322

Bengal Ambuja Metro Development Ltd.

(EAST)

MALL PROFILE Bengal Sristi Infrastructure Development Ltd.

CITY CENTRE

DREAMPLEX

ASANSOL CENTRUM

Location: Raipur City: Raipur Status: Launching Shortly Total Land Area: 5,66,280 sq.ft Total Mall Space: 6,50,000 sq.ft Gross Leasable Area (GLA): 5,00,000 sq.ft No. of Floors: 5 Shopping Area: 4,00,000 sq.ft Food Court Area: 10,000 sq.ft Leisure & Entertainment Area: 30,000 sq.ft Competitive Advantage: Horizontal mall Catchment Area: Baloda Bazaar and its adjoining areas

Location: Durgapur City Center City: Durgapur, West Bengal Status: Operational Operational From: 2006 Total Mall Investment: Rs.20 crore Total Built-up Area: 1,05,000 sq.ft No. of Floors: G+3 Gross Leasable Area: 70,000 sq.ft GLA/GFA Ratio: 7:10 Leased/Sold Space Ratio: 7:3 Leasing Agents/Companies: In-house/Trammell Crow Meghraj CAM Charges: Rs.12/sq.ft/month Rental Model: Fixed minimum rent Atrium Area: 5,000 sq.ft Shopping Area: 65,000 sq.ft Food Court Area: 9,000 sq ft Leisure/Entertainment: 27,000sq.ft Services Area: 2,500 sq.ft Parking Area: 25,000 sq.ft Space for No. of 4-wheelers: 100 Space for No. of 2-wheelers: 200 No. of Escalators: 2 No. of Lifts: 1 Location Considerations: Part of Durgapur City Centre Project Catchment Area: Burdwan, Raniganj, Asansol, Jamuria, Birbhum Average Footfall on Week Days: 5,000 Average Footfall on Weekends: 12,000 Mall Management: Inhouse TENANT MIX Anchor: 89 Cinemas (Multiplex) Status: Operational No. of Screens/Total Capacity: 3 Screens/1,000 Seats Other Brands/Retailers: Nik Nish, My Dollar Store, Koutons, Woodland, Music

Location: Shristinagar, Asansol City: Asansol, West Bengal Status: Announced Operational From (Planned): 2009 Total Built-up Area: 6,00,000 sq.ft No. of Floors: G+4 Leasing Agents/Companies: Inhouse Rental Model: Fixed minimum rent Shopping Area: 3,00,000 sq.ft Food Court Area: 50,000 sq.ft Leisure & Entertainment Area: 50,000 sq.ft Space for No. of 4-wheelers: 300 Space for No. of 2-wheelers: 500 Considerations on choice of location: Part of Shristinagar – The New Asansol Catchment Area: Burdwan, Raniganj, Asansol, Jamuria, Birbhum TENANT MIX Anchor 1: Pantaloons (Department Status: Booked Anchor 2: Inox (Multiplex) Status: Booked

323

(EAST)

MALL PROFILE

Bengal Sristi Infrastructure Development Ltd.

BK Builders and Enterprises

City Mall Developers Pvt. Ltd.

SHOPPING MALL

KAY'M PLAZA

CITY MALL 36

Location: Raniganj Square, Raniganj City: Raniganj, West Bengal Status: Announced Operational From (Planned): 2009 Total Investment in the Mall: Rs.50 crore Total Built-up Area: 1,70,000 sq.ft No. of Floors: G+3 Leasing Agents/Companies: Inhouse Rental Model: Fixed minimum rent Atrium Area: 6,000 sq.ft Shopping Area: 1,20,000 sq.ft Food Court Area: 5,000 sq.ft Leisure & Entertainment Area: 5,000 sq.ft Space for No. of 4-wheelers: 100 Space for No. of 2-wheelers: 200 Considerations on choice of location: Part of Raniganj Square – A highway hub located on NH 2 Catchment Area: Burdwan, Raniganj, Jamuria, Asansol, Birbhum

Location: Near Kar Bhavan, Ganeshguri, GS Road, Dispur City: Guwahati Status: Under Construction Planned Launch: January, 2008 Total Mall Investment: Rs.10 crore+ Total Land Area: 13,500 sq.ft (approx) Total Mall Space: 70,000 sq.ft No. of Floors: B+ G + 6 Gross Leasable Area: 70,000 sq.ft Leased/Sold Space Ratio: 70% / 30% Leasing Agents/Companies: Inhouse CAM Charges: Rs.5/sq.ft/month Rental Model: Rs.40-50/sq.ft Parking Area: Space for 10,000+ vehicles (basement and around building) No. of Lifts: 3 (1 capsule lift) Location Considerations: First of its kind in the North-East, located on Guwahati-Shillong Road, near Ganesguri flyover, the main CBD Catchment Area: Guwahati-Shillong Road, Ganeshguri flyover, Dispur Other shopping centres/malls in 6 km radius: Ganesguri, Zoo Road, Beltola Super Market, 6 mile local market complex, Shohum Shoppe Towers, Dihang Towers, Hub, Fashion Planet, The Ramond's Shop,T urtle, Big Bazaar (coming up at the city square), etc. Average Footfall on Week Days: 20,000-30,000 Average Footfall on Weekends: 50,000 Mall Management: In-house Competitive Advantage: Covers a large population in the area of 2-5 sq.km covering Zoo Road, Dispur

Location: NH 6, GE Road City: Raipur Status: Operational Operational since: July 2007 Total Land Area: 5,00,000 sq.ft Total Built-up Area: 3,60,000 sq.ft Gross Leasable Area: 2,50,000 sq.ft No. of Floors: B+G+4 Leased/Sold Space Ratio: All leased CAM Charges: Rs.15/sq.ft/month Rental Model: Fixed Minimum Rent Food Court Area: 30,000 sq.ft Leisure/Entertainment: 20,000 sq.ft Space for No. of 4-wheelers: 750 Space for No. of 2-wheelers: 1,200 No. of Escalators: 8 No. of Lifts: 4 Average Footfall on Week Days: 8,000-10,000 Average Footfall on Weekends: 20,000-25,000 Mall Management: Outsourced Competitive Advantage: Complete family entertainment centre, a first for Chhattisgarh TENANT MIX Anchor 1: Big Bazaar (Hypermarket) Status/No. of Floors: Operational/G+2 Anchor 2: Pantaloons (Department Store) Status/No. of Floors: Operational/G+2 Anchor 3: Globus (Department Store) Status: Operational No of Floors: 1 Anchor 4: Inox (Multuplex) Status: Operational No. of Screens/Total Capacity:

324

(EAST)

MALL PROFILE EWDPL India Pvt. Ltd.

TREASURE ISLAND

TREASURE ISLAND

TREASURE ISLAND

Location: Opp Agricultural College, NH 6 City: Raipur Status: Under Construction Planned Launch: December 2008 Total Mall Investment: Rs.136 crore Total Land Area: 3,20,000 sq.ft Total Built-up Area: 5,93,000 sq.ft Gross Leasable Area: 7,30,000 sq.ft No. of Floors: 9 Leasing Agents/Companies: Jones Lang LaSalle Meghraj CAM Charges: Rs.21/sq.ft/month Rental Model: Fixed for retail shops; revenue sharing for F&B outlets Atrium Area: 21,800 sq.ft Shopping Area: 3,15,000 sq.ft Food Court Area: 30,000 sq.ft Leisure/Entertainment: 61,900 sq.ft Services Area: 2,06,981 sq.ft Parking Area: 3,24,070 sq.ft No. of Escalators: 7 pairs (1 travelator) No. of Lifts: 8 passenger and 6 service Catchment Area: Jeevan Vihar, Mova, Jal Vihar, Civil Lines, Anupam Nagar Other shopping centres/malls in 6 km radius: City Mall 36, Magneto, City Mall Pandri, Bengal Ambuja Mall Mall Management: In-house Competitive Advantage: Largest mall in Raipur, on NH 6, with a five-star hotel TENANT MIX Anchor 1: Max (Department Store) Status/No. of Floors: Booked/1 Anchor 2: Fun Republic (Multiplex) Status/Screens: Booked/6 screens Anchor 3: Spencers (Hypermarket) Status/No of Floors: Under Negotiation/1 Anchor 4: Geant (Hypermarket) Status/No of Floors: Under Negotiation/1

Location: Sukhsagar Valley, Polipather, Narmada Road City: Jabalpur Status: Under Construction Planned Launch: October 2008 Total Mall Investment: Rs.111 crore Total Land Area: 1,39,600 sq.ft Total Mall Space: 4,80,900 sq.ft Gross Leasable Area: 5,72,800 sq.ft No. of Floors: 10 Leasing Agents/Companies: Jones Lang LaSalle Meghraj CAM Charges: Rs.21/sq.ft/month Rental Model: Fixed for retail shops; revenue sharing for F&B outlets Atrium Area: 12,712 sq.ft Shopping Area: 1,78,800 sq.ft Food Court Area: 45,300 sq.ft Leisure/Entertainment: 44,600 sq.ft Services Area: 14,690 sq.ft Parking Area: 1,57,600 sq.ft No. of Escalators: 5 pairs No. of Lifts: 8 passenger and 4 service Catchment Area: Sadar, Katanga, Pachpedi, Civil Lines, MPEB, Polipather, Wright Town, Napier Town Other shopping centres/malls in 6 km radius: Indo-Pacific Mall, Samdhariya Mall Management: In-house Competitive Advantage: Largest mall in Jabalpur on Narmada Road, with a business hotel TENANT MIX Anchor 1: Max (Department Store) Status/No. of Floors: Booked/1 Anchor 2: Cinemax (Multiplex) Status/Screens: Booked/4 screens Anchor 3: Globus (Department Store) Status/No of Floors: Under Negotiation/1 Anchor 4: Spencers (Hypermarket)

Location: Opp. Surya Vihar, Junwani City: Bhilai Status: Under Construction Planned Launch: December 2008 Total Mall Investment: Rs.81 crore Total Land Area: 2,08,960 sq.ft Total Built-up Area: 3,75,900 sq.ft Gross Leasable Area: 4,75,120 sq.ft No. of Floors: 7 Leasing Agents/Companies: Jones Lang LaSalle Meghraj CAM Charges: Rs.21/sq.ft/month Rental Model: Fixed for retail shops; revenue sharing for F&B outlets Atrium Area: 27,870 sq.ft Shopping Area: 2,35,475 sq.ft Food Court Area: 28,490 sq.ft Leisure/Entertainment: 34,896 sq.ft Services Area: 1,66,100 sq.ft Parking Area: 1,32,031 sq.ft Catchment Area: Bhilai Steel Township, Nehru Nagar, Priyadarshini Nagar, MP Housing Board Mall Management: In-house Competitive Advantage: The first mall in Bhilai with a frontage of 858 sq.ft; located in a posh residential locality. TENANT MIX Anchor 1: Fame (Multiplex) Status: Booked No. of Screens: 4 screens Anchor 2: Spencer's (Hypermarket) Status: Under Negotiation No of Floor: 1

325

(EAST)

MALL PROFILE J.J. Realtors Pvt. Ltd.

Fort Group

FORT KNOX

LEE-II

FFRIGANGI BAZAAR

Location: Camac Street City: Kolkata Status: Partly operational Operational From: June 2006 Total Mall Space: 65,000 sq.ft No. of Floors: B+G+8 Gross Leasable Area: 80,000 sq.ft Atrium area: 950 sq.ft Shopping Area: 40,000 sq.ft Food Court Area: 12,000 sq.ft Services Area: 15,000 sq.ft Space for No. of 4-wheelers: 70 Space for No. of 2-wheelers: 30 No. of Escalators: 10 No. of Lifts: 4 Competitive Advantage: Speciality jewellery mall with high-end ambience Location Considerations: High street Catchment Area: Camac Street Average Footfalls on Week days: 200-300 Average Footfall on Weekends: 300-400 Mall Management: In- house TENANT MIX Anchor 1: Tanishq (Jewellery Store) Status/Area: Operational/4,000 sq.ft Anchor 2: Kiam (Jewellery Store) Status/Area: Operational/2,000 sq.ft Anchor 3: Adora (Jewellery Store) Status/Area: Operational/2,000 sq.ft Anchor 4: Orra (Jewellery Store) Status/Area: Operational/1,200 sq.ft Other Brands/Retailers: Cygnus, D'Damas, B Motiram, Sakshi, Moah, Krunal Gems, Torpan, Aishwarya, SH Mumtazuddin, Komal Creation, Gaja, Epari etc.

Location: Bhawanipur City: Kolkata Status: Under Construction Planned Launch: October 2007 Total Mall Space: 30,000 sq.ft No. of Floors: B+G+2 Gross Leasable Area: 47,000sq.ft Atrium Area: 780 sq.ft Shopping Area: 41,000 sq.ft Food Court Area: 5,000 sq.ft Services Area: 12,000 sq.ft Space for No. of 4-wheelers: 50 Space for No. of 2-wheelers: 20 No. of Escalators: 6 Kids' Zone Area: 1,000 sq. ft. Location Considerations: High street Catchment Area: Bhawanipur Average Footfalls on Week days: 300-400 Average Footfall on Weekends: 400-600 TENANT MIX Anchor 1: Big Bazaar (Hypermarket) No of Floors: 1

Location: E.M.Bypass (opp Salt Lake Stadium) City: Kolkata - 700010 Status: Under Constrution Planned Launch: 2007-end Total Land Area: 57,000 sq.ft Total Built-up Area: 1,80,000 sq.ft Gross Leasable Area: 1,48,000 sq.ft Atrium Area: 2,000 sq.ft Shopping Area: 84,853 sq.ft Food Court Area: 7,490 sq.ft Leisure/Entertainment: 40,000 sq.ft Services Area: 19,100 sq.ft Parking Area: 27,000 sq.ft Space for No. of 4-wheelers: 200+ No. of Floors: 2 Basements + G+6 No. of Escalators: 11 No. of Lifts: 4 Creche Area: 1,000 sq.ft Kids' Zone Area: 7,500 sq.ft Location Considerations: On the main EM Bypass, connected to all of Kolkata Catchment Area: Salt Lake, EM Bypass and other parts of Kolkata Competitive Advantage: Upmarket mall TENANT MIX Anchor 1: Max Lifestyle (Department Store) Status/Area: Booked/25,000 sq.ft Anchor 2: M2K (Multiplex) Status: Booked No. of Screens/Total Capacity: 4 Screens/1,100 Seats Other Brands/Retailers: Levis, Pepe, Nike, Archies, Cottons by Century, Koutons, Woodland, Soles, Shoebox, Nokia, Gini & Jony, Infiniti, Prime Watches, Nescafe, Tea Station, Gurlz,

326

J.J. Realtors Pvt. Ltd.

Jokhiram Durgadutt

(EAST)

MALL PROFILE Kshitij Investment Advisory Co. Ltd.

SHOP OUT

JD HIGH STREET

PANDRI ROAD MALL

Location: 92, Raja Subodh Chandra Mullick Road City: Kolkata Status: Under Construction Planned Launch: 2007-end Total Land Area: 23,100 sq.ft Total Mall Space: 52,000 sq.ft Gross Leasable Area (GLA): 44,570 sq.ft Atrium Area: 660 sq.ft Shopping Area: 20,088 sq.ft Food Court Area: 7,500 sq.ft Leisure & Entertainment Area: 5,000 sq.ft Services Area: 11,367 sq.ft Parking Area: 8,830 sq.ft Space for No. of 4-wheelers: 40+ Space for No. of 2-wheelers: 30 No. of Floors: Basement + G+5 No. of Lifts: 4 Elevators Kids' Zone Area: 2,000 sq.ft Considerations on choice of Location: Ideally located and connected to South Kolkata Catchment Area: South Kolkata Competitive Advantage: Shopping plaza for Middle Income Group TENANT MIX Other Brands/Retailers: Children's Book Shop, Aksha Boutique, Aksha Western Wear

Location: Opp Gel Church Complex, Main Road City: Ranchi Status: Under Construction Operational From (Planned): 2008 Total Mall Investment: Rs.35 crore Total Land Area: 22,144 sq.ft Total Mall Space: 1,10,000 sq.ft No. of Floors: 3 Basements + Ground + 8 Gross Leasable Area (GLA): 70,000 sq.ft Leased/Sold Space Ratio: All leased Shopping Area: 32,000 sq.ft Food Court Area: 8,000 sq.ft Leisure & Entertainment Area: 30,000 sq.ft Space for No. of 4-wheelers: 100 Space for No. of 2-wheelers: 100 No. of Escalators: 12 No. of Lifts: 2 Other shopping centres/malls in 6 km radius: GEL Church Complex, Roshpa Towers Competitive Advantage: Excellent location; and the first mall-cummultiplex in Ranchi TENANT MIX Anchor 1: Fun Republic Cinemas (Multiplex)

Location: Pandri Road, Near Pandri Cloth market City: Raipur Status: Under Construction Operational From (Planned): April 2008 Project Type: PRIL leased Total Mall Space: 7,16,000 sq.ft Space for No. of 4-wheelers: 386 No. of Floors: G + 3 Floor Plate: 1,73,000 sq.ft Positioning of Mall: Value/Lifestyle TENANT MIX Anchor 1: Super/Hypermarket Status: Under Negotiation Anchor 2: Department Store Status: Under Negotiation Anchor 3: Multiplex Status: Under Negotiation Anchor 4: Food Court Status: Under Negotiation Anchor 5: Entertainment Arcade Status: Under Negotiation Anchor 6: Consumer Durables/Electronics anchor Status: Under Negotiation Anchor 7: Home Furnishing anchor Status: Under Negotiation Anchor 8: Books & Music anchor Status: Under Negotiation Anchor 9: Gym/Beauty anchor Status: Under Negotiation Others: Vanilla Retail Status: Under Negotiation

327

(EAST)

MALL PROFILE

Kshitij Investment Advisory Co. Ltd.

JESSORE ROAD MALL

STRAND ROAD MALL

VIP ROAD MALL

Location: Jessore Road, within 'North City Project' City: Kolkata Status: Under Construction Operational From (Planned): April 2008 Project Type: PRIL leased Total Mall Space: 2,60,000 sq.ft Space for No. of 4-wheelers: 227 No. of Floors: G + 4 Floor Plate: 45,000 sq.ft Positioning of Mall: Value/Lifestyle TENANT MIX Anchor 1: Super/Hypermarket Status: Under Negotiation Anchor 2: Department Store Status: Under Negotiation Anchor 3: Multiplex Status: Under Negotiation Anchor 4: Food Court Status: Under Negotiation Anchor 5: Entertainment Arcade Status: Under Negotiation Anchor 6: Consumer Durables/Electronics anchor Status: Under Negotiation Anchor 7: Home Furnishing anchor Status: Under Negotiation Anchor 8: Books & Music anchor Status: Under Negotiation Anchor 9: Gym/Beauty anchor Status: Under Negotiation Others: Vanilla Retail Status: Under Negotiation

Location: Strand Road City: Kolkata Status: Under Construction Operational From (Planned): June 2008 Project Type: PRIL leased Total Mall Space: 4,55,000 sq.ft Space for No. of 4-wheelers: 200 No. of Floors: G + 6 Floor Plate: 57,000 sq.ft Positioning of Mall: Lifestyle TENANT MIX Anchor 1: Super/Hypermarket Status: Under Negotiation Anchor 2: Department Store Status: Under Negotiation Anchor 3: Multiplex Status: Under Negotiation Anchor 4: Food Court Status: Under Negotiation Anchor 5: Entertainment Arcade Status: Under Negotiation Anchor 6: Consumer Durables/Electronics anchor Status: Under Negotiation Anchor 7: Home Furnishing anchor Status: Under Negotiation Anchor 8: Books & Music anchor Status: Under Negotiation Anchor 9: Gym/Beauty anchor Status: Under Negotiation Others: Vanilla Retail Status: Under Negotiation

Location: VIP Road City: Kolkata Status: Under Construction Operational From (Planned): September 2008 Project Type: Kshitij Mall Total Mall Space: 3,81,000 sq.ft Space for No. of 4-wheelers: 450 No. of Floors: G + 5 Floor Plate: 95,000 sq.ft Positioning of Mall: Value/Lifestyle TENANT MIX Anchor 1: Super/Hypermarket Status: Under Negotiation Anchor 2: Department Store Status: Under Negotiation Anchor 3: Multiplex Status: Under Negotiation Anchor 4: Food Court Status: Under Negotiation Anchor 5: Entertainment Arcade Status: Under Negotiation Anchor 6: Consumer Durables/Electronics anchor Status: Under Negotiation Anchor 7: Home Furnishing anchor Status: Under Negotiation Anchor 8: Books & Music anchor Status: Under Negotiation Anchor 9: Gym/Beauty anchor Status: Under Negotiation Others: Vanilla Retail Status: Under Negotiation

328

Kshitij Investment Advisory Co. Ltd.

Mani Square Pvt. Ltd.

(EAST)

MALL PROFILE Merlin Projects Ltd.

SEVOKE ROAD MALL

MANI SQUARE

ACROPOLIS

Location: Sevoke Road City: Siliguri Status: Under Construction Operational From (Planned): January 2008 Project Type: PRIL leased Total Mall Space: 1,75,000 sq.ft Space for No. of 4-wheelers: TBA No. of Floors: G + 6 Floor Plate: 25,800 sq.ft Positioning of Mall: Value/Lifestyle TENANT MIX Anchor 1: Super/Hypermarket Status: Under Negotiation Anchor 2: Department Store Status: Under Negotiation Anchor 3: Multiplex Status: Under Negotiation Anchor 4: Food Court Status: Under Negotiation Anchor 5: Entertainment Arcade Status: Under Negotiation Anchor 6: Consumer Durables/Electronics anchor Status: Under Negotiation Anchor 7: Home Furnishing anchor Status: Under Negotiation Anchor 8: Books & Music anchor Status: Under Negotiation Anchor 9: Gym/Beauty anchor Status: Under Negotiation Others: Vanilla Retail Status: Under Negotiation

Location: Off EM Bypass City: Kolkata Status: To be launched soon Planned launch: October 2007 Total Mall Investment: Rs.125 crore Total Land Area: 1,84,694.4 sq.ft Total Mall Space: 6,00,000 sq.ft Gross Leasable Area: 3,00,000 sq.ft CAM Charges: Rs.15/sq.ft/month Rental Model: Lease Rental/Revenue Sharing Atrium Area: 15,000 sq.ft approx. Shopping Area: 2,40,000 sq.ft approx. Food Court Area: 30,000 sq.ft approx. Leisure/Entertainment: 35,000 sq.ft Services Area: 15 percent approx. Parking Area: Basement - 3 levels, MultiLevel Car Park - 7 levels Space for No. of 4-wheelers: 1,200 Space for No. of 2-wheelers: 800 No. of Floors: 3 B + G + 4 No. of Escalators/Lifts: 13/10 Kids' Zone/Creche Area: 10,000 sq.ft and 3,000 sq.ft Competitive Advantage: Located on the North-South Connector; IMAX 3D Theatre Catchment Area: Ultadanga, Phoolbagan, Salt Lake etc. Average Footfalls on Week days: 35,000 Average Footfall on Weekends: 50,000 TENANT MIX Anchor 1: IMAX Cinemax (Multiplex) Status: Booked Screens/Capacity: 3 Screens/1,400 Seats Anchor 2: Westside (Department Store) Status/Area: Booked/30,000 sq.ft Anchor 3: Spencer's Hyper (Hypermarket) Status/Area: Booked/55,000 sq.ft

Location: Rajdanga Main Road City: Kolkata Status: Under Construction Operational From (Planned): July 2007 Total Investment in the Mall: Rs.75 crore Total Land Area: 86,400 sq.ft Total Mall Space: 4,27,200 sq.ft Gross Leasable Area (GLA): 1,61,460 sq.ft No. of Floors: G + 4 GLA/GFA Ratio: 1 : 0.78 Leased/Sold Space Ratio: All leased CAM Charges: Yet to be decided Rental Model: Fixed Minimum Rent Atrium Area: 3,900 sq.ft Shopping Area: 1,08,250 sq.ft Food Court Area: 22,600 sq.ft Leisure & Entertainment Area: 30,620 sq.ft Services Area: 3,150 sq.ft Parking Area: 1,70,000 sq.ft Space for No. of 4-wheelers: 665 No. of Escalators: 10+4 No. of Lifts: 4 Considerations on choice of location: It is situated in the heart of the future CBD of Kolkata; conveniently located near EM Bypass. Other shopping centres/malls in 6 km radius: Gariahaat Mall Competitive Advantage: Situated in the heart of Kolkata, near future CBD.

329

(EAST)

MALL PROFILE

Merlin Projects Ltd.

HOMELAND Location: Ashutosh Mukherjee Road City: Kolkata Status: Operational Operational From: April 2007 Total Investment in the Mall: Rs.18.50 crore Total Land Area: 1,05,000 sq.ft Total Mall Space: 42,000sq.ft Gross Leasable Area (GLA): 63,000 sq.ft No. of Floors: G + 5 Leasing Agents/Companies: GS Marketing CAM Charges: Rs.17/sq.ft/month Rental Model: Fixed Minimum Rent Shopping Area: 50,000 sq.ft Food Court Area: 2,000 sq.ft Services Area: 30,000 Space for No. of 4-wheelers: 100 No. of Escalators: 2 No. of Lifts: 3 Considerations on choice of location: Located in the heart of Central Kolkata, near Chowringee and Elgin Road, close to The Forum, C3 and the metro station. Other shopping centres/malls in 6 km radius: The Forum Average Footfall on Week Days: 1,000 Average Footfall on Weekends: 3,000 Mall Management: In-house Competitive Advantage: Location and concept

Prabhatam Buildwell Ltd.

Shristi Infrastructure Development Corporation Ltd.

GRAND THE INTERNATIONAL MALL Location: Main Barbada Road, Dhaiya City: Dhanbad Status: Under Construction Operational From (Planned): December 2008 Total Land Area: 1,09,000 sq. ft. Total Mall Space: 4,75,000 sq. ft. Gross Leasable Area (GLA): 3,36,244 sq.ft. No. of Floors: Basement+LGF+G+5 CAM Charges: On Actual Basis Rental Model: Fixed Minimum Rent Atrium Area: 7,000 sq.ft Shopping Area: 2,04,777 sq.ft Food Court Area: 10,000 sq.ft Leisure & Entertainment Area: 48,128 sq.ft Parking Area: 50,000 sq.ft No. of Escalators: 14 No. of Lifts: 6 Other shopping centres/malls in 6 km radius: None Competitive Advantage: First mall of Dhanbad TENANT MIX Anchor 1: PVR (Multiplex) Status: Booked No. of Screens/Total Capacity: 4 Screens/1,110 Seats

330

KRISHNAGAR CENTRUM Location: Krishnanagar City: Krishnanagar Status: Planned Operational From (Planned): 2009 Total Land Area: 35,000 sq.ft Total Mall Space: 1,40,000 sq.ft No. of Floors: G+3 Considerations on choice of location: Part of the 'City Centre' project at Krishnanagar Catchment Area: Entire Nadia district of West Bengal, including Mayapur.

Skystar Shopping Pvt. Ltd.

South City Projects (Kolkata) Ltd.

(EAST)

MALL PROFILE Sunsam Properties (P) Ltd.

SUNFLOWER MALL

SOUTH CITY MALL

THE FORUM

Location: Siliguri City: Siliguri Status: Operational Operational From: August 2005 Total Investment in the Mall: Rs.4 crore Total Land Area: 30,000 sq.ft Total Mall Space: 50,000 sq.ft Gross Leasable Area (GLA): 45,000 sq.ft No. of Floors: 3 CAM Charges: Rs.18/sq.ft/month Rental Model: Rs.80/sq.ft/month Atrium Area: 1,800 sq.ft Shopping Area: 45,000 sq.ft Services Area: 3,000 sq.ft Space for No. of 4-wheelers: 10 Space for No. of 2-wheelers: 50 No. of Lifts: 1 Catchment Area: North Bengal Other shopping centres/malls in 6 km radius: None Average Footfall on Week Days: 600 Average Footfall on Weekends: 1,000 Mall Management: In-house Competitive Advantage: Location; first mover advantage in the city

Location: Prince Anwar Shah Road City: Kolkata Status: Under Construction Planned Launch: December 2007 Total Land Area: 2,16,000 sq.ft Total Mall Space: 10,25,000 sq.ft Gross Leasable Area: 7,00,000 sq.ft Atrium Area: 14,000 sq.ft Shopping Area: 6,00,000 sq.ft Food Court Area: 25,000 sq.ft Leisure/Entertainment: 65,000 sq.ft Services Area: 1,00,000 sq.ft Parking Area: 3,00,000 sq.ft No. of Floors: LG + G + 3 No. of Escalators: 2 pairs No. of Lifts: 2 pairs Competitive Advantage: Best location in Kolkata, 150,000 sft. floor plate, Parking at all levels, Huge size hypermarket and departmental store, Best of the brands committed to the Mall Catchment Area: Entire Kolkata as well as Bhubaneswar, Siliguri, Guwahati, Durgapur, Asansol TENANT MIX Anchor 1: Spencer's Hypermarket Area: 78,000 sq.ft Anchor 2: Shoppers' Stop Department Store Area: 81,000 sq.ft Anchor 3: Pantaloons (Department Store) Area: 71,000 sq.ft Anchor-4: Fame (Multiplex) Screens/Total Capacity: 6 Screens/1,400 Seats Anchor 4: Landmark (Bookstore) Area: 19,000 sq.ft

Location: Kolkata City: Kolkata Status: Operational Operational From: March 2003 Total Land Area: 80,724 sq.ft Total Mall Space: 1,86,116 sq.ft No. of Floors: Basement + G + 6 Atrium Area: 4,000 sq.ft Shopping Area: 91,000 sq.ft Food Court Area: 9,800 sq.ft Leisure & Entertainment Area: 24,000 sq.ft Services Area: 33,000 sq.ft Parking Area: 24,000 sq.ft No. of Escalators: 8 No. of Lifts: 4

331

(EAST)

MALL PROFILE

Sunsam Properties (P) Ltd.

Venkatesh Foundation Pvt. Ltd.

FORUM COURTYARD

FORUM MART

LAKE MALL

Location: Kolkata City: Kolkata Status: Under Construction Operational From (Planned): December 2008 Total Mall Space: 1,53,000 sq.ft No. of Floors: Basement + G + 6 Shopping Area: 21,470 sq.ft Services Area: 12,850 sq.ft No. of Escalators: 4 No. of Lifts: 3

Location: Bhubaneswar City: Bhubaneswar Status: Operation Operational From: March 2004 Total Land Area: 53,887 sq.ft Total Mall Space: 1,81,035 sq.ft No. of Floors: Basement + G + 7 Atrium Area: 2,952 sq.ft Shopping Area: 70,000 sq.ft Food Court Area: 18,400 sq.ft Services Area: 24,000 sq.ft Parking Area: 15,700 sq.ft No. of Lifts: 4

Location: Rashbehari Avenue City: Kolkata Status: Under Construction Operational From (Planned): April 2008 Total Investment in the Mall: Rs.60 crore Total Land Area: 48,255 sq.ft Total Mall Space: 2,45,000 sq.ft Gross Leasable Area (GLA): 1,70,000 sq.ft Atrium Area: 2,200 sq.ft Shopping Area: 1,22,000 sq.ft Food Court Area: 16,000 sq.ft Leisure & Entertainment Area: 30,000 sq.ft Space for No. of 4-wheelers: 265 No. of Floors: B + G + 6 No. of Escalators: 9 No. of Lifts: 6 TENANT MIX Anchor 1: Big Bazaar (Hypermarket) Status/Area: Booked/37,465 sq.ft Anchor 2: Globus (Department Store) Status/Area: Booked/7,240 sq.ft Anchor 3: Multiplex Status: Under Negotiation No. of Screens/Total Capacity: 4 Screens/1,050 Seats

332

PART II MALL PROFILES

NORTH INDIA

STATES OF NORTH INDIA Delhi, Haryana, Himachal Pradesh, Jammu & Kashmir, Punjab, Rajasthan, Uttaranchal, Uttar Pradesh

NORTH ZONE Population-2006 (million) NORTH ZONE

248

Av per capita Consumption Exp (INR/year)

Consumption Expenditure 2006-07 (INR million)

94

342

4,236,272

2,766,750

7,003,022

17,064

29,398

23,400,000

17,287

29,652

ALL INDIA

796

325

1,121

13,753,864

9,646,136

North as % of All-India

31%

29%

31%

31%

29%

State population in lakh ('03

Largest City

Largest City Population '000 ('01)

30%

Avg Growth Rate Of Per Capita NDP %

148

New Delhi

9,879.2

Per Capita Ndp As Share Of Indian Mean Index 253.3

Haryana

22

Faridabad

1,055.9

133.2

3.13

23.8

50.5

Himachal Pradesh

62

Shimla

142.6

107.4

4.74

17.5

55.2

Jammu & Kashmir

107

Srinagar

898.4

70.1

1.79

1.8

65.4

Punjab

251

Ludhiana

1,398.5

133.9

2.26

15.7

43.9

Rajasthan

593

Jaipur

2,322.6

72.6

4.17

18.1

53.0

1,744

Kanpur

2,551.3

50.9

1.46

13.5

52.7

88

Dehra Dun

527.9

73.8

2.04

9.1

56.3

State Delhi (NCR)

Uttar Pradesh Uttaranachal

4.86

Share of Industry Sector In NDP 9.9

Share of Services In NDP 88.9

Source: Census of India 2001, RBI Citypopulation.db, DB Research

T

he eight North Indian States of Delhi, Rajasthan, Haryana, Punjab, HP, J&K, Uttranchal, Uttar Pradesh along with the union territory of Chandigarh together house 31 percent of country's population and account for 30 percent of India's private final consumption expenditure; the

zone's share is Rs.7,003 billion out of the estimated India total consumtion expenditure of Rs.23,400 billion in 2006-07. The average per capita consumption expenditure for the Northern states is almost at par with the country average for both the urban and rural population.

161

DELHI

B

eing the national capital, Delhi is one of the most important locations for businesses and investors. Delhi's National Capital Region (NCR), comprising Noida (New Okhla Industrial Development Area), Gurgaon, Faridabad and Ghaziabad, is the principal business and commercial centre of North India.

NCR

ECONOMIC FACT FILE Area:

1,483 sq.km

Population:

13.8 million (Census 2001)

Literacy:

81.67%

NSDP:

US$21.5 billion

NSDP Growth:

15.38% (10 years)

Per Capita Income:

US$1,099

International Airport:

Indira Gandhi International Airport

Domestic Airport:

Palam

Key Industries:

Retailing and leisure Tourism Apparels

Industry with growth potential:

• Service-sector driven fast growing economy

Healthcare

DOING BUSINESS IN DELHI Department

Agnecy

• Second most favoured FDI destination in country

Industries/Land revenue

Diractorate of Industries

Registration of small scale industries 30 days

• One of the best infrastructure in country

Incentives

Export Promotion Councol

Registration with exports council: 7 days

Revenue

Commissionor of Industries

Grant of extension for completion of construction on plot/permission for leasing/ sub-lettign: 30 days

DSIDC/DFC

DSIDC DFC

Sanction of loan: 30 days

• India's biggest consumption centre for consumer goods and automobiles, with highest concentration of Nupscale households • Largest talent pool and low cost of operations

Source: DSIDC

162

Timelines

HARYANA

H

aryana became the first state in the country to introduce Value Added Tax in 2003. Key sectors in the state include automobiles and auto components, textiles and readymade garments, Information Technology (IT) and Information Technology Enabled Services (ITES). It is also the third largest exporter of software services. The state offers significant potential for agro-based industries, property development and retailing. With investment currently underway, it is expected to emerge as the principal hub for downstream chemicals in north India.

ECONOMIC FACT FILE Capital:

Chandigarh

Area:

44,000 sq.km

Population:

21 million (Census 2001)

Literacy:

67.9%

Human Development Index:

0.509 (all India rank 5th)

NSDP:

US$7.1 billion

NSDP Growth:

6.5 % (10 years)

Per Capita Income:

US$592

National Highways Length:

1,468 km

Rail Length:

1,548 km

International Airport:

Indira Gandhi International Airport

Domestic Airport:

Chandigarh

Key Industries:

Automobiles Textiles and Readymade Garments IT/ITES

DOING BUSINESS IN HARYANA

• Fourth highest per capita income in the country • Leading producer of automobiles and automotive components • Third largest exporter of software, one of the preferred destinations for IT/ITES facilities • Among the leading producers of textiles and readymade garments in India and largest exporter of basmati rice in the country • Significant potential for property development and retailing

163

HIMACHAL

T

he small hilly state, geographically located in the north-western part of the country, is surrounded by four states, namely, Uttar Pradesh, Punjab, Haryana and Jammu & Kashmir with Tibet on the other side. Himachal Pradesh is among the most advanced socio-economic states and has shown promising growth over the years. Over the last decade the strong agro-based economy has shifted towards services, particularly tourism.

PRADESH

ECONOMIC FACT FILE Capital:

Shimla

Area:

56,000 sq.km

Population:

6.07 million (Census 2001)

Literacy:

76.48%

Per Capita Income:

US$539.7

Domestic Airport:

Shimla Kullu Valley Kangra

Key Industries:

Agro-based Woollens Tourism

DOING BUSINESS IN HIMACHAL PRADESH

HIMACHAL PRADESH FACT BOX • Ranked second on consumer market index • Most urbanised state in the country • One of the lowest power tariff and cost of power generation in the country

Source: Department of Industries, Himachal Pradesh

164

JAMMU

S

trategically located, the state of Jammu and Kashmir constitutes the northern most part of India. The state is vested with a good mineral base and significant power potential. Endowed with natural beauty of snowclad mountains, lakes, streams and rare flora and fauna, the state holds immense potential to attract tourists from across the world.

&

KASHMIR

ECONOMIC FACT FILE Capital:

Srinagar

Area:

22,22,236 sq.km

Literacy:

54.5%

Per Capita Income:

US$324

Roadways:

12,682 km

COST OF SETTING UP BUSINESS IN JAMMU & KASHMIR

• Allotment of land at concessional rates in industrial areas on lease for 90 years. • Large tourism potential. • Horticulture industry in Kashmir is the bulwark of rural economy in the state generating revenue of over US$ 10.5 million yearly and providing job facilities to thousands of people directly and indirectly Source: Department of Industries, Himachal Pradesh

165

PUNJAB

P

unjab was the first Indian state to use agricultural technology to engineer a “green revolution”, recording the highest growth rate in food production. Today, with its rich agricultural resources and favourable climate, the state continues to be one of the largest producers of food grains and cash crops in the country. Punjab contributes 68 per cent to the annual food production of India.

• Leading agriculture state, per capita income 25 per cent higher than the national average

ECONOMIC FACT FILE Capital:

Chandigarh

Area:

50,362 sq.km

Population:

25.2 million (Census 2001)

Literacy:

70%

Human Development Index:

0.537 (all India rank 2nd)

NSDP:

US$8.6 billion

NSDP Growth:

4.06% (10 years)

Per Capita Income:

US$574

National Highways Length:

1,557 km

Rail Length:

2,102 km

International Airport:

Amritsar

Domestic Airport:

Chandigarh, Ludhiana

Key Industries:

Agro-processing Textiles, Hosiery and Woollens Light Engineering Goods

DOING BUSINESS IN PUNJAB

• Second largest producer of cotton and blended yarn, third largest producer of mill made fabric • Competitive strength in textiles, woollens and auto parts due to presence of industry clusters Source: PwC Research

166

RAJASTHAN

R

ajasthan's strategic location as the corridor between the wealthy north and the prosperous west enables it to provide convenient access to the two largest consumer markets in India.

ECONOMIC FACT FILE

The state's key areas of strength include mineral based industries, textile, tourism and gems & jewellery. Rajasthan enjoys a distinct advantage in these sectors. It is also the leading producer of cement and metals such as copper, zinc and lead and the largest producer of marble and stones in the country. Tourism accounts for over 15 per cent of the state's economy. It attracts over 10 per cent per cent of the foreign tourists visiting the country every year.

Capital:

Jaipur

Area:

342,239 sq.km

Population:

56 million (Census 2001)

Literacy:

61%

Human Development Index:

0.424 (All India rank 9th)

NSDP:

US$11.5 billion

NSDP Growth:

6% (10 years)

Per Capita Income:

US$327

National Highways Length:

4,081 km

Rail Length:

5,894 km

International Airport:

Jaipur

Domestic Airport:

Jodhpur, Udaipur

Key Industries:

Mineral based industries, Textiles, Tourism, Gem and jewellery, Dimensional stones (marble and granite), Agro-processing

DOING BUSINESS IN RAJASTHAN

• Leading producer of cement in the country • Second largest mineral producing state in the country, large reserves of metallic and non-metallic reserves • Among the largest producers of cotton and wool in the country • A well known tourist destination

Source: IBEF

167

UTTARPRADESH

U

ttar Pradesh (UP) is situated in northern part of India and is surrounded by Bihar in the east, Madhya Pradesh in the south, Rajasthan, Delhi, Himachal Pradesh and Haryana in the west and Uttaranchal in the north.The state has a population of 166 million. Uttar Pradesh has the longest network of rivers and canals at 28,500 km fostering the agriculture sector. The mineral resources in the state are mainly limestone, dolomite, glass-sand, marble, bauxite, non-plastic fireclay and uranium.

ECONOMIC FACT FILE Capital:

Allahabad

Area:

2,40,928 sq.km

Population:

166.2 million (Census 2001)

Literacy:

56.27%

NSDP:

US$36.26 billion

Per Capita Income:

US$327

National Highways Length:

3,728 km

Rail Length:

5,440km

International Airport:

Mumbai (nearest)

Domestic Airport:

Lucknow,Varanasi, Kanpur

Key Industries:

Cement, Vegetable oils, Textiles, Cotton yarn, Sugar, Jute, Carpet, Brassware, Glassware & Bangles

DOING BUSINESS IN UTTAR PRADESH

• Largest population in the country • Longest river network, longest rail length and ranks second in road length • Ranks second in total number of sugar mills • Highest number of domestic tourists in the country Source: IBEF

168

UTTARANCHAL

U

ttaranchal is a young state, barely four years old, having been carved out of Uttar Pradesh. It has however several good things going for it. Levels of literacy in the state are higher than the national average. The hills, the large forest cover and the presence of several holy shrines offer a tremendous tourist potential.

ECONOMIC FACT FILE Capital:

Dehradun

Area:

53,483 sq.km

Population:

56 million (Census 2001)

Literacy:

71.62%

COST OF SETTING UP BUSINESS IN UTTARANCHAL

• The state has significant hydropotential (15,000 MW) of which only 1124 MW has been realised • Vast pool of a natural resource adds to the state's attractiveness as an investment destination, especially for tourism and forest based industry • Abundant availability of quality human resource base at competitive rates • Uttaranchal compares favourably with the all India aggregates in terms of the spread of basic infrastructural facilities

Source: IBEF

169

RETAIL REAL ESTATE IN NORTH INDIA

According to IMAGES F&R Research data, the rate of growth in shopping centre space in the Northern region, which was up to 2005 largely confined to Delhi and the national capital region, is now picking up in the tier-II and tier-III cities in a big way. The overall rate of increase in supply of mall space is still very and on the basis of information on the stages of ongoing project work, year 2007 will register a growth of more than 85 percent over the previous year when growth was only 44 percent. There is likely to be a very significant increase in mall space in the year 2008 and if all projects materialise, this increase will be to the extent of nearly 150 percent over the space available in by 2007-end. The number of operational malls in the north zone

MGF City, New Delhi

The total supply of shopping centre space in the Northern region by end-2007 will be 16.75 million sq.ft from 69 operational malls, which will be an increase of nearly 85.7 percent over the space available in end-2006. However, till August 2007 only 53 malls were operational with 11.43 million square feet of built-up floor space and a good 16 projects are in the completion stage hoping to make it by the end of the year 2007.

will increase from 69 in 2007 to 195 in year 2011. There are quite a few mega projects offering 10 lakh square feet and above mall space like the Omaxe Connaught Place mall in Nida (14 lakh sq.ft), DLF's Mall of India at Gurgaon (55.23 lakh sq.ft), Ambi Mall (18 lakh sq.ft), City Centre at Ludhiana (40 lakh), Jewel of India in Jaipur (25 lakh sq.ft) and so on. Good number of such projects are taking roots in the tier-II

NORTH ZONE: Growth in Mall Space 2691

80000 Base

Increase

70000

17872

space: '000 sq.ft

60000 50000

16117

40000

75624

30000

24884

57752 41635

20000 10000 200 442 0 end-2002

642

2414

2004

3212

3056 2005

2753

7730

6268

9021

2006

2007

16751

170

2008*

2009*

2010*

2011 P

cities. From 16.75 million square feet in 2007, mall space in the north zone will increase more than four and half times to 78.31 million square feet in 2011 if projects get completed in the announced time frame. India's mall projects got initiated by the coming of Delhi's Ansals Plaza in 1999, which was only next to Chennai's Spencers Plaza. The average ratio of land area to mall space for Delhi and the NCR is as 1 : 2.04 while for Jaipur it is 1 : 3.17 ; for Ludhiana it is higher at 1 : 3.64 ; in Lucknow it is 1 : 2.48 and the land to mall space ratio for Sonepat it is the lowest at 1. Malls in NCR and Sonepat thus have more open un-built space as compared to those in the other cities. The average ratio as between mall space and gross leasable area gives an indication of the size of atrium and free movement space within the mall. Here again, for Delhi NCR malls the ration of mall space to GLA is as 1 : 0.67 as compared to 1 : 0.94

Metropolitan Mall, Jaipur

North-Other Centres

end-2000

Number of Malls Total Mall Space ('000 sq.ft)

2002

2004

2005

2006

2007

1

2

3

5

14

2008* 31

30

126

246

646

2320

7706

Total Land Area ('000 sq.ft)

12

51

99

260

935

3106

Total GLA ('000 sq.ft)

23

97

188

495

1776

5899

2002

2004

2005

2006

2007

2008*

3

7

7

9

12

511

1262

1262

1887

2742

Jaipur

end-2000

Number of Malls Total Mall Space ('000 sq.ft) Total Land Area ('000 sq.ft)

161

398

398

596

866

Total GLA ('000 sq.ft)

417

1032

1032

1543

2242

2004

2005

2006

2007

2008*

1

4

8

175

1616

6670

Ludhiana

end-2000

2002

Number of Malls Total Mall Space ('000 sq.ft) Total Land Area ('000 sq.ft)

48

443

1830

Total GLA ('000 sq.ft)

74

680

2808 2008*

Lucknow

end-2000

2002

Number of Malls Total Mall Space ('000 sq.ft)

2004

2005

2006

2007

1

1

1

2

4

315

315

315

894

1727

Total Land Area ('000 sq.ft)

157

157

157

329

697

Total GLA ('000 sq.ft)

203

203

203

571

1130

2004

2005

2006

2007

2008*

Sonepat

end-2000

2002

Number of Malls

3

Total Mall Space ('000 sq.ft)

1300

Total Land Area ('000 sq.ft)

677

Total GLA ('000 sq.ft) Delhi, NCR Number of Malls Total Mall Space ('000 sq.ft)

1224 end-2000

2002

2004

2005

2006

2007

1

3

9

19

28

40

2008* 64

200

612.3

2105

4445

6624

10035

21489

Total Land Area ('000 sq.ft)

350

299

1029

2173

3237

4904

10503

Total GLA ('000 sq.ft)

175

412

1418

2994

4462

6759

14476

end-2000

2002

2004

2005

2006

2007

2008*

1

4

15

30

42

69

122

200

642

3056

6268

9021

16751

41635

NORTH ZONE Number of Malls Total Mall Space ('000 sq.ft) Total Land Area ('000 sq.ft)

350

311

1397

2827

4101

7207

17678

Total GLA ('000 sq.ft)

175

435

2134

4417

6264

11329

27778

171

in Sonepat, 1 : 0.65 in Lucknow, 1: 0.42 in Ludhiana, 1 : 0.82 in Jaipur and 1 : 0.76 is the average in the rest of the northern cities. Till 2006 the share of Delhi NCR in the total mall space available in the northern zone was a dominating 74 percent the domination get heavily diminished as its share is likely to

reduces to mere 51 percent by end-2008. Major gainers are Ludhiana, whose share will increase form 2 percent a year ago to 16 percent, while Sonepat's share increases from less than one percent to 3 percent and Lucknow increases its share from 3 percent to 4 percent. The other smaller cities will also significantly increase their share in north India's mall space from 7 percent in 2006 to 19 percent in 2008.

NORTH ZONE: 2006 Distribution of Mall Space (Total Space: 9.02 million sq.ft)

North: Share of Mall Space by 2008 (Esimated Space: 41.6 million sq.ft)

North-Other Centres 19%

North-Other Centres 7%

Delhi, NCR 51%

Jaipur 14%

Delhi, NCR 74%

Jaipur 7%

Ludhiana 2% Lucknow Sonepat3% 0%

Ludhiana 16% Sonepat Lucknow 4% 3%

Mall Projects - North Zone

172

Mall Projects - North Zone

168

173

Mall Projects - North Zone

174

Mall Projects - North Zone

175

Mall Projects - North Zone

176

Average Capital values* (Rs / sq.ft.)

National Capital Region (NCR)

Location

Current Scenario

2006

5/1/2007**

Hi Street

India is in the midst of the retail boom and especially the NCR region is witness to the fast changing scenario. The way retailing is done has undergone a paradigm shift with more retailers organising and consolidating their operations. With retail getting more organized, there’s substantial demand for quality retail space for retailer s to show case their products. NCR with a relatively high income as well as lifestyle conscious population has further accelerated the retail boom. The conscious population now demands higher levels of service in the form of ambience, facilities or accessibility, etc.

Connaught Place inner circle

72000

NA

NDSE 1& 2

75000

NA

Greater Kailash 1(M Block)

72000

NA

Khan Market

99000

NA

Karol Bagh

36000

NA

Basant Lok

33000

NA

Noida Sector 18

26400

NA

24000

45600

Malls Gurgaon

With the consumers accepting the mall culture, more and more retailers ventured the mall route for all the facilities and target audience as well service levels that are associated with the mall s. The first mall to come up in NCR, was the Ansal Plaza and since then there has been no looking back.

Noida

26400

42000

South Delhi

48000

84000

West Delhi

39000

60000

sector. In Delhi for instance,, Delhi Development Authority (DDA) and Municipal Corporation of Delhi (MCD) are auctioning land in prime residential areas and various other locations which are now fast becoming retail hotspots with affluent customers in the catchment area. And this has augmented the release of new space for development of shopping malls, multiplexes and entertainment hubs.

Presently the NCR region has a retail space of about 10.035 million sq,ft. Of this Gurgaon and Ghaziabad together account for 54%. In two years time, it is expected to grow to 26.6 million sq,ft.. The entire scenario is fast changing with the relaxation of various policy guidelines and opening up of the real estate

Along with the relaxation of guidelines, newer case sensitive issues are also coming within the purview. As was the case of

National Capital Region- Retail Market Trend

Average Rentals (Rs / sq.ft./ Month) Location

2004

2005

2006

May-07

Connaught Place inner circle

280

340

600

775

NDSE 1& 2

295

375

625

800

Greater Kailash 1(M Block)

255

340

600

800

Khan Market

400

500

825

1000

Karol Bagh

220

250

300

450

Basant Lok

220

250

275

400

Noida Sector 18

135

160

220

250

Gurgaon

130

150

200

380

Noida

110

135

220

350

South Delhi

225

275

400

700

West Delhi

NA

200

325

500

Hi Street

Malls

Source: Cushman & Wakefield Research

** Limited sale transactions in high streets to establish a trend The rental values are quoted on Built-up areas as a market practise The rental values are for the ground floor or ground plus upper floor combinations The rental values will vary depending upon the size and neighborhood

177

the demolition drive of MCD, which in one way acted as a boon for the mall owners in NCR. Even the judicial issues like the Supreme Court order to close all showrooms, shops and retail outlets in unauthorised areas throughout Delhi, raised a number of issues as it would result in shutting down of the major retail outlets in Ring Road in South Extension and Lajpat Nagar. This drive is expected to have a fall-out even in the Highstreet shopping locations like Greater Kailash I and II, South Extension, West Patel Nagar, Defence Colony, etc.

to name among the few .Vasant Kunj is also generating a lot of interst with several developers coming up with mall projects and many more in the offing These areas are witness to big projects and these trend is expected to generate substantial retail space in the area. Even West Delhi is fast becoming a hub of retailers with a number of mall projects in locations like Rohini, Pitampura, Shalimar Baug and Rajouri Garden.

The various issues and guidelines have affected in both positive as well as negative ways, the overall mall growth scenario. As in case of the Supreme Court decision in Delhi with regard to closure of showrooms in unauthorized areas has acted as a breather for the mall owners who were experiencing a slide in their mall rentals. With the malls being set-up with prior approvals from various authorities is a far safer bet for retailers to take up space even if there is a opportunity cost involved in the form of higher rentals. With the fast changing scenario, the mall owners are again witnessing a spurt in demand . Quite a few mall owners identifying the latent potential have already hiked up their prices by about 20-25%.,

With the upcoming Commonwealth Games in 2010, the East Delhi region too is gearing up in the direction. Various infrastructure development activities are also in the pipeline. With the development of basic infrastructure, Eastern Delhi will become more accessible and will soon have visible presence in the retail radar. The area also a large population base of over3 million which is a major driver and can generate footfalls of over 25,000 on weekends. Though these part of Delhi is mostly inhabitated by a population falling in lower-middle to middlemiddle class bracket, may not easily see very large and exclusive high-end retailers or brands, but with the explosion of the city, the scenario may soon take a different path with the more neorich class steering the retail momentum.

DELHI

GURGAON

Presently Delhi has approximately 4.11millionsq.ft. of organised retail space, and this includes malls and multiplexes like Ansal Plaza, , Pacific North, TDI Mall, Cross River Mall, etc. Over 20 new malls are expected to be added up with an estimated area of 14 million sq.ft. of organised retail space by 2010.

Gurgaon is the most developed commercial and business centre of Haryana, located on the outskirts of Delhi. It is spread over 2,766 sq km and has a population of over 600,000. The industrial areas around Gurgaon house most of the automobile and auto component manufacturers in the state. Gurgaon also has a number of garment export units. During the last 3-4 years, Gurgaon has emerged as an important location for the Information Technology (IT) and the

Among Delhi’s prime locations, the South Extension market is the most evolved highstreetAlmost all major high-end brands and retailers have presence through their exclusive and flagship stores with the location commanding a visibility, accessibility as well affluent shoppers. A number of locations aroud Delhi too are emerging as hotbeds of retail like Saket and Vasant Kunj. A number of developers have there malls coming in these areas. Notable among them are DLF with two malls, The Courtyard and The South Court in Saket, then there’s the Suncity Projects

Information Technology Enabled Services (ITES) industry in the state. Gurgaon stands next to Bangalore as the outsourcing hub of India. With a vibrant youth populace as well as major business centers in the vicinity, has further accelerated the growth of the city with prime residential developers coming up with major projects over the last few years. Further, with the addition of the newer complexes housing affluent and younger population with high income salaries has augmented the development and is emerging as another major retail destinations. Gurgaon boasts of a substantial number of malls with over 15 existing malls and many more in the pipeline By 2010, over 13 million sq.ft of retail spcae is likely to be available in Gurgaon thus accounting for a new retail space infusion in the NCR region. But a rather new phenomenon being seen in these region is the upcoming of more projects catering to mixed clientele. The mall developers identifying the various issues involved in the mall 178

development is now opting for newer combination of tenant mixes to make their projects more feasible. More and more mall projects are upcoming with a combination of retail, office and hotel as their tenants. The mall developers are planning out their projects keeping in view the imbalance that can be created by over supply of mall space and many are reworking their tenant mix or incorporating major changes be it leasing out the upper floors of the mall for hotel or service apartments. With Gurgaon becoming a major business hub, many developers are also leasing out there spaces as offices. With the stand alone retail projects not generating enough revenues, the new concept of mixed use developments are thus changing the way retailing is done. Mall Projects like Orchid Plaza, Central Plaza, Orchid Agora, Time Towers, etc. are a few examplesthat can be named that are working on newer dimensions and re-inventing the retail developments.

Developrs, Shipra, Bansal Group etc. have their mall projects in Ghaziabad. Faridabad is also catching up with its neighbouring areas with a number of malls and retail options to cater to its consumers. As per Knight Frank Research,the area is expected to witness an influx of 1.12 million.sq.ft. of new retail space by 2008

OUTLOOK With around 79malls (totaling to over 30 millionsq.ft.) is slated to be operational by 2010, NCR market is going to lead the retail real estate development in India. Developers are vying with a number of options to differentiate their malls on the basis of product offering and tenant mix. More and more large format malls (over 300,000 sq.ft.)are being set up with a number of amenities in its array. The concept of mall hotel too is gaining ground with a number of developers leasing out their upper floors for hotel projects, Earlier the upper floors were rented to the multiplexes but the new concept of mall hotel too is picking up as the hotel industry is witnessing an unprecedented growth in average room rates and room occupancy rates. Pacific Mall in Delhi has already set up a budget hotel, Clarks Inn, in its premises other developers are expected to follow the trend soon in various malls.

NOIDA Another prime area which is fast becoming a shoppers destination is Noida. It is basically a prime residential location in anindustrial belt, This region too is fast witnessing tremendous growth with the influx of many multi-nationals (mainly IT/ITES), and a number of other offices has also come up in the region. With these a large number of people are making Noida there home. Noida with a good infrastructure is fast gaining retailers attention to cater to the growing region. Another, advantage being the location, with its close proximity to major cities of the region, it enjoys traffic which is both regular as well as transit population. And these population is one of the major movers of retail developments. Besides, a number of international brands and retailers have set up offices at Noida like McDonald's, Pizza Hut, Benetton, etc.

Highstreet retail in places like South Extension, Connaught Place, Greater Kailash, Vasant Kunj, etc. would still continue to rule and command high prices due to lack of fresh supplyin prime locations. Some new micro-markets are coming up and a few are adding more space to its existing total retail space like Defence Colony andtheDistrict Centre of Jasola are among the few. Noida and Ghaziabad are the emerging markets for large format retail development with reasonable real estate costs, land availability, low cost labour being the prime differentiators and movers attracting the developers to these areas. Besides this, the inflow of IT/ITES multi nationals to these locations have also generated interest in the region and the demand for new age retail and entertainment avenues.

At present the Noida retail market consists of less than a million sq.ft of retail organised space. As per Knight Frank Research, approximately 7.9 million sq.ft. of new retail space is underway is expected by 2008. The city is also host to a number of large retail establishments like The Great India Mall Down Square and Citi Centre which are expected to become functional by 2008. In the span of next two years, Noida is going to have an additional supply of 3.6 million.sq.ft. of organised retail space.

REST OF NCR Faridabad and Ghaziabad together will account for about 3 million sq.ft of retail space by 2008 thus adding to the total retail space in NCR Ghaziabad too is emerging as another retail hub. Its proximity to Delhi has further helped in the development of industries and several real estate projects in the region Ghaziabad has a number of malls operational and quite a few are in th offing. . The region is expected to have over 3 million sq.ft of retail space by 2010. Quite a number of major developers like Parsavnath 179

Shifts in consumer demand for luxury goods and the entry of foreign retailers have increased the demand for quality retail space. The concept of shopping has undergone a total change and has now become more of an event and a family entertainment avenue. The large format malls are now turning into destinations in themselves and have the right mix of shopping and entertainment all under one roof. With many more mall to come up in the NCR market, a risk of supply outstripping the demand is envisaged unless a proper balance is maintained with regards to various critical parameters.Moreover, development of projects with a proper feasibility study, favourable location, right retail mix and a well laid out operational and marketing strategy will determine the road ahead and success of the future malls.

OTHER NORTHERN CENTRES FARIDABAD Faridabad is another prominent business and industrial centre, covering an area of 2,151 sq km. Adjacent to the southern part of Delhi, it is well connected to the National capital and Gurgaon through a road and rail network. The main industries in Faridabad are light engineering goods, metal goods and automotive components. It complements the automobile industries located in Gurgaon. The 500 small and medium enterprises in Faridabad, mainly auto component manufacturers, are finalising plans to invest over US$ 30 million for technology improvement and capacity expansion.

JAIPUR Jaipur is the capital of Rajasthan and its largest city. It has a population of approximately 2.3 million. It is well connected to Delhi and other major cities across India. Its international airport offers direct flights to South-east

Infrastructure Development Scheme’ (TCIDS) of the Government of India, is to be set up at Panipat.

CHANDIGARH-MOHALI

Asia and the Middle East, as well as to many other cities across India. It is a prime destination for domestic and foreign tourists in the country. Jaipur has 19 industrial areas with product base including gems and jewellery, marble, granite and engineering items. It is also a potential destination for IT and ITES industries coming to the state.

KOTA Kota is a prominent business and industrial centre in Rajasthan. It has a population of 0.7 million. It is located on the main railway line connecting Delhi and Mumbai. Kota has 14 industrial estates and a number of large chemical units. Products from these units include fertilizers, caustic soda, cement, copper based items, stones and tiles, PVC items and tyre chord fabric. The areas surrounding Kota also have large limestone and sandstone deposits.

PANIPAT Indian Oil’s Panipat refinery is the most modern public sector refinery equipped with state-of-the-art technology. Panipat refinery today is on the springboard of growth with two projects, Panipat Refinery Expansion Project for doubling its capacity from 6 to 12 MMTPA and Integrated Paraxylene and PTA Project having a capacity of 553,000 MTPA of PTA are scheduled to be commissioned in 2005. In order to further accelerate the development of the textile industry, a project under ‘Textile Centres 180

Chandigarh is the capital city of Punjab and the administrative headquarters of the Government of Punjab. Mohali is a twin township of Chandigarh and the hub for Information Technology (IT)/Information Technology Enabled Services (ITES), electronics and pharmaceutical industries.The State Government is actively pursuing proposals to set up an IT-based Special Economic Zone at Mohali.

LUDHIANA-JALANDHARAMRITSAR Spread over 6,400 sq km LudhianaJalandhar are two of Punjab’s largest cities with a population of over five million.They also form Punjab’s principal industrial hubs, dominated by textiles and light engineering goods industries. Ludhiana is the domestic leader in acrylic yarn and woollens and is gearing up for growth in knitwear exports in the post quota regime, especially as the Indian textile industry enjoys a zero excise status. Under the Government of India’s Industrial Infrastructure Upgradation Scheme, the state is developing two industrial clusters, at Ludhiana and Amritsar, to promote cotton and woollen textile exports respectively.These clusters involve an investment of US$ 11 million each. The State Government is also working out the modalities of setting up a General Product Zone in Amritsar. The other important districts are Karnal and Ambala. Karnal is the centre of agrobased and handloom industries. Ambala is well known for the hosiery industry. Other parts of the state, particularly the economic hub around KMP and Panchkula are to be developed as IT Corridors.

Ambience Developers & Infrastructure Pvt Ltd

Advance India Projects Ltd

CELEBRATION MALL, UDAIPUR

CELEBRATION MALL, AMRITSAR

Location: Udaipur City: Udaipur Status: Under-Construction Operational from(Planned): October,2008 Total Land Area: 1,35,000 sq.ft Total Built-up Area: 5,50,000 sq.ft No. of Floors: 2 basement+AGF+6 (incl. of Multiplex) GLA: GFA Ratio: 65:35 Leased/ Sold Space Ratio: 100% Lease CAM Charges: As per Mall Management Acency Rental Model: Fixed Rent Space for No of 4-wheelers: 250 Space for No of 2-wheelers: 348 No of Escalators: 10+1 No. of Lifts: 6 Kids Play/Creche Area: Yes Mall Management : In-House

Location: Amritsar City: Amritsar Status: Under-Construction Operational from(Planned): December, 2008 Total Land Area: 60,000 sq.ft Total Built-up Area: 3,20,000 sq.ft No. of Floors: 3 basement+LGF+8 (Incl. of Multiplex) GLA: GFA Ratio: 65:35 CAM Charges : As per Mall Management Acency Rental Model: Fixed Rent Space for No of 4-wheelers: 240 Space for No of 2-wheelers: 200 No of Escalators: 11 No. of Lifts: 4 Kids Play/Creche Area: Yes Mall Management : In-House

TENANT MIX

Anchor-1: Spencer Anchor-2: FameAdlabs Category/Format: Multiplex

(NORTH)

MALL PROFILE

TENANT MIX

Anchor-1: Spencer Anchor-2: Westside Category/Format: Department Store Anchor-3: PVR Cinemas Category/Format: Multiplex

181

AMBI MALL Location : NH- 8 Gurgaon ,Delhi Haryana Border, Gurgaon -122001 City : Gurgaon Total Land Area: 18,00,000 sq.ft Total Mall Area: 18,00,000 sq.ft No. of Floors: G+7 Gross Leasable Area (GLA): 18,00,000 sq.ft Shopping Area: 18,00,000 sq.ft Food Court Area: 50,000 sq.ft Leisure & Entertainment Area: 1,00,000 sq.ft Parking Space: Approx 3,000 cars No of Escalators: 38 No. of Lifts: 37 Kids Play/Creche Area: 50,000 sq.ft Considerations on choice of location : On NH-8 7 KM From International Airport Catchment Area : Gurgaon, 0 Km from South of Delhi Other shopping centres/malls in 6 km radius : MGF METROPOLITAN, CITY CENTRE, DLF STAR MALL, GALAXY MALL, DLF GRAND MALL ETC TENANT MIX

Anchor-1: Reliance Mart Category/Format: Hypermarket Area occupied: 150,000 sq.ft Anchor-2: Debhenams, Mark & Spencer, Next Category/Format: Department Store Area occupied: 100,000 sq.ft Anchor-2: Pantaloon Category/Format: Department Store Area occupied: 72,000 sq.ft Anchor-1: Big Baazar Category/Format: Hypermarket Area occupied: 52,000 sq.ft

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MALL PROFILE

ANSAL API

ANSAL PLAZA, DELHI

ANSAL PLAZA, GREATER NOIDA

Location: Khelgaon Marg - Delhi City: Delhi Status: Operational Total Land Area: 3,50,000 sq.ft Total Mall Area: 2,00,000 sq.ft No. of Floors: 2 lower basement plus 3 Gross Leasable Area: 1,75,000 sq.ft Leased/ Sold space ratio: 45:65 CAM Charges: 24.5 Rental Model: Fixed Minimum Rent Atrium area: 25,000 sq.ft Shopping Area: 1,20,000 sq.ft Leisure & Entertainment Area: 4,000 sq.ft Space for No of 4-wheelers: 9,00 sq.ft Space for No of 2-wheelers: 1,200 sq.ft Levels connected with Escalators: all No. of Lifts: 7 Kids Play/ Creche Area: 150 sq.ft Market Area: South Extn. GK Other Shopping centres/ malls in 6 km radius: None Average Footfalls on Week days: 14000 Average Footfall on Weekends: 21000 Mall Management : Inhouse

Location: Pari Chowk, Greater Noida City: Greater Noida Status: Under construction. Total Land Area: 2,61,274 sq.ft Total Mall Area: 7,50,000 sq.ft No. of Floors: G+8 Gross Leasable Area: 4,00,000 sq.ft CAM Charges: BTU meter installed for calculation of AC consumption and dual energy meter for electricity consumption Rental Model: Fixed Rent Tenant Mix: Reliance Retail, Adlabs, Savoy Suites, Mc Donalds, Pizzahut, KFC, Essar, Nike, Addidas, Reebok, Dayal Opticals, Timex, Wills Lifestyle, D'Damas, Nakshatra, Crocodile, Candico, Cantabil, Kwality Walls, VLCC, Fast Trax, Limasol, GKB, Genesis Basics, Johnplayers, MTV, Levis, Walk n M&B, Vingun, Reynolds, SRS 7 Dayz (Food Court), Just In Time, Adams, Spykar, Kool Kidz, Book Shoppee, Disney World, Costa, Cream Bell, Archies, Candy Treat, Numero Uno, Planet M, Cotton County Atrium area: 3 huge atriums Shopping Area: 3,60,000 sq.ft Food Court Area: 15,000 sq.ft Parking Area: 3,60,000 sq.ft Space for No of 4-wheelers: 1,100 No of Escalators: 19 Levels connected with Escalators: 8 No. of Lifts: 7 Competitive Advantage: First Mall to be operational in Greater Noida in Second Quarter 2007. Strategically located on the Noida - Greater Noida Express way near Pari Chowk. The next Mall would be operational after 3 years of launch of Ansal Plaza, Greater Noida 182

ANSAL PLAZA PALAM VIHAR Location: Palam Vihar City: Gurgaon Status: Under construction. Total Land Area: 1,13,218 sq.ft Total Mall Area: 3,50,000 sq.ft No. of Floors: G+5 Gross Leasable Area: 1,90,000 sq.ft CAM Charges: BTU meter installed for calculation of AC consumption and dual energy meter for electricity consumption Rental Model: Fixed Rent Tenant Mix: Adlabs, Reliance Retail, Nike, Priknit, SRS 7 Dayz Atrium area: 1 huge atrium Shopping Area: 1,55,000 sq.ft Food Court Area: 13,000 sq.ft Parking Area: 1,63,000 sq.ft Space for No of 4-wheelers: 300 CPS No of Escalators: 8 No. of Lifts: 6 Competitive Advantage: This is the only Mall in the Palam Vihar Township, which is spreadover 700 acres. Market Area: Palam Vihar HUDA Sector 4, 5, 21, 22, 23, 23A, 45 and easy approach from Vasant Kunj Dwaraka, Delhi Cantt. etc. will make the Mall a most happening place Other Shopping centres/ malls in 6 km radius: No operational Mall

ANSAL API

ANSAL ROYAL PLAZA

ANSAL HIGHWAY PLAZA

ANSAL PLAZA, MEERUT

Location: Nai Sarak, Main High Court Road City: Jodhpur Status: Under construction. Total Land Area: 43,545 sq.ft Total Mall Area: 1,30,000 sq.ft No. of Floors: G+4 Rental Model: Fixed Rent Tenant Mix: Madura Garments, Koutons, Turtle, Pizza Corner, Coffee World, Planet M, John Players, K Lounge, Priknit, Samsonite, Jammin, Bikanerwala, Spykar, GKB Opticals, Leisure & Entertainment Area: 8,000 sq.ft Space for No of 4-wheelers: 200 Competitive Advantage: Located in the heart of the city Market Area: Sardarpura, Shastrinagar, PWD colony, Pawta Circle and other areas Mall Management: Ansal Plaza Mall Management Co.

Location: Kondli Border City: Sonipat Status: Under Construction. Total Land Area: 1,63,296.75 sq.ft Total Mall Area: 2,50,000 sq.ft No. of Floors: G+6 Rental Model: Fixed Rent Tenant Mix: Bikanerwala, Pantaloon, Adidas, Nike, Megamart, Numero Uno, Koutons, Candy Treat, SweetWorld

Location: Sector 3 City: Meerut Total Land Area: 1,41,524 sq.ft Total Mall Area: 2,50,000 sq.ft No. of Floors: G+3 Rental Model: Fixed Rent

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MALL PROFILE

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MALL PROFILE

ANSAL API

ANSAL PLAZA, PANIPAT

ANSAL PLAZA, AJMER

ANSAL PLAZA LUCKNOW

Location: G.T. Karnal Road City: Panipat Total Land Area: 1,56,764 sq.ft Total Mall Area: 2,50,000 sq.ft No. of Floors: G+9

Location: Sushant City City: Ajmer Total Land Area: 1,56,764 sq.ft Total Mall Area: 2,40,000 sq.ft No. of Floors: G+4

Location: Ansal Hi-Tech City, Sultanpur Road City: Lucknow Total Land Area: 4,35,457 sq.ft Total Mall Area: 10,00,000 sq.ft No. of Floors: G+2

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MALL PROFILE CHADHA GROUP

The Centre Stage Mall

The EastEnd Mall

The WestEnd Mall

Location: L-1, Sector - 18 City: Noida,U.P Status: Operational Operational from(Planned): September 2003 Total Investment in the Mall: Rs. 97 Crore Total Land Area: 94,483 sq.ft Total Mall Area: 35,0000 sq.ft No. of Floors: 2+9 Gross Leasable Area (GLA): 2,56,000 sq.ft Leased/ Sold Space Ratio: Leased Only CAM Charges: Rs.21 per sq.ft/month Rental Model: Fixed Minimum Rent Atrium Area: 10,200 sq.ft Shopping Area: 85,000 sq.ft Food Court Area: 10,000 sq.ft Leisure & Entertainment Area: 46,789 sq.ft Services Area: 1,14,000 sq.ft Parking Area: 93,500 sq.ft Space for No of 4-wheelers: 1,300 Space for No of 2-wheelers: 500 No of Escalators: 14 No. of Lifts: 2+1 Catchment Area: Delhi & NCR Other shopping centres/malls in 6 km radius: The Great India Place Mall Management: In-House

Location: TC-54, Vibhuti Khand, Gomti Nagar City: Lucknow, U.P Status: Operational Operational From: 1, April, 2004 Total Investment in the Mall: Rs. 32 Crore Total Land Area: 1,56,700 sq.ft Total Mall Area: 3,14,500 sq.ft No. of Floors: 1+3 Gross Leasable Area (GLA): 2,02500 sq.ft Leased/ Sold Space Ratio: Leased Only CAM Charges: Rs.17.50 per sq.ft/month Rental Model: Fixed Minimum Rent Atrium Area: 7,000 sq.ft Shopping Area: 85,000 sq.ft Food Court Area: 7,500 sq.ft Leisure & Entertainment Area: 47,700 sq.ft Services Area: 50,300 sq.ft Parking Area: 1,12,000 sq.ft Space for No of 4-wheelers: 400 Space for No of 2-wheelers: 200 No of Escalators: 4 No. of Lifts: 5 Catchment Area: Lucknow Other shopping centres/malls in 6 km radius: Fun Republic Mall Mall Management: In-House

Location: F 32, RamGanga Vihar, Kanth Road City: Moradabad, U.P Status: Operational Operational from(Planned): 3rd August 2007 Total Land Area: 10,3820 sq.ft Total Mall Area: 77,670 sq.ft No. of Floors: 1+3 Gross Leasable Area (GLA): 22,205 sq.ft Leased/ Sold Space Ratio: Leased Only CAM Charges: Rs 18.5 per sq.ft/month Rental Model: Fixed Minimum Rent Atrium Area: 5,316 sq.ft Food Court Area: 2,485 sq.ft Leisure & Entertainment Area: 6,618 sq.ft Services Area: 1,13,223 sq.ft Parking Area: 37,297 sq.ft Space for No of 4-wheelers: 142 Space for No of 2-wheelers: 100 No. of Lifts: 1 Catchment Area: Moradabad & Suburbs Other shopping centres/malls in 6 km radius: None Mall Management: In-House

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MALL PROFILE

CHADHA GROUP

Collage Group

The WestEnd Mall

The EastEnd Mall

VIVA COLLAGE

Location: Plot no 2&3, City Plaza, Firozpur City: Ludhiana, Punjab Status: Soon to be Operational Total Land Area: 94,000 sq.ft Total Mall Area: 4,71,000 sq.ft No. of Floors: 3+7 Gross Leasable Area (GLA): 2,82,000 sq.ft Leased/ Sold Space Ratio: Leased Only Rental Model : Fixed Minimum Rent Atrium Area : 9,000 sq.ft Shopping Area: 1,24,000 sq.ft Food Court Area: 12,000 sq.ft Leisure & Entertainment Area: 5,3100 sq.ft Services Area: 83,900 sq.ft Parking Area: 1,88,300 sq.ft Space for No of 4-wheelers: 650 Space for No of 2-wheelers: 200 No of Escalators: 10 No. of Lifts: 4+1 Catchment Area : Ludhiana, Chandigarh, Firozpur & near by towns Other shopping centres/malls in 6 km radius: Flamez, Ansals Plaza Mall Management : In-House

Location: Near Telephone Exchange, Kaushambi City: Ghaziabad, U.P Status: Operational Operational from (Planned): September 2003 Total Investment in the Mall: Rs. 28 crore Total Land Area: 32,757 sq.ft Total Mall Area: 83,374 sq.ft No. of Floors: 2+5 Gross Leasable Area (GLA): 56,892 sq.ft Leased/ Sold Space Ratio: Leased Only Rental Model: Fixed Minimum Rent Shopping Area: 11,128 sq.ft Leisure & Entertainment Area: 43,988 sq.ft Services Area: 1,776 sq.ft Parking Area: 26,482 sq.ft Space for No of 4-wheelers: 70 Space for No of 2-wheelers: 50 No of Escalators: 2 No. of Lifts: 2 Catchment Area: Delhi & Ncr Other shopping centres/malls in 6 km radius: Pacific Mall, EDM Mall Management : In-House

Location: Sahastradhara Road City: Dehradun Status: Planning Operational From (Planned): October, 2010 Total Land Area: 6,09,840 sq.ft Total Mall Area: 12,00,000 sq.ft No. of Floors: 4 Gross Leasable Area: 7,00,000 sq.ft Rental Model: Fixed Rent Shopping Area: 7,28,000 sq.ft Food Court Area: 50000 sq.ft Leisure & Entertainment Area: 1,00,000 sq.ft Services Area: 45,000 sq.ft Parking Area: 6,00,000 sq.ft Space for No of 4-wheelers: 2,000 Space for No of 2-wheelers: 4,000 No. of Lifts: 8 passenger + 6 service on each floor Other shopping centres/malls in 6 km radius: 4 Mall Management: In-House Competitive Advantage: Concept stage

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MALL PROFILE DLF Retail Developers Limited

College Group

VIVA COLLAGE

VIVA COLLAGE

STAR MALL

Location: Ajnala Road City: Amritsar Status: Planning Operational From (Planned): October, 2009 Total Land Area: 1,89,488 sq.ft Total Mall Area: 6,66,848 sq.ft No. of Floors: 5 Gross Leasable Area : 4,15,490 sq.ft Rental Model: Fixed Rent Shopping Area: 3,32,392 sq.ft Food Court Area: 20,000 sq.ft Leisure & Entertainment Area: 20,000 sq.ft Services Area: 25,135 sq.ft. Parking Area: 3,00,000 sq.ft Space for No of 4-wheelers: 836 Space for No of 2-wheelers: 2,500 No of Escalators: 2 pair on each floor No. of Lifts: 4 passenger + 3 service on each floor Kids Play/Creche Area: Yes Other shopping centres/malls in 6 km radius: 9 Mall Management : In-House Competitive Advantage : Best of India

Location: GT Road, Paragpur City: Jallandhar Status: Construction Operational From (Planned): April, 2009 Total Land Area: 1,35,792 sq.ft Total Mall Area: 6,23,152 sq.ft No. of Floors: 5 Gross Leasable Area: 4,16,000 sq.ft Rental Model: Fixed Rent Shopping Area: 3,21,622 sq.ft Food Court Area: 28,000 sq.ft Leisure & Entertainment Area: 20,000 sq.ft Services Area: 15,000 sq.ft Parking Area: 2,50,000 sq.ft Space for No of 4-wheelers: 700 Space for No of 2-wheelers: 2,000 No of Escalators: 2 pair on each floor No. of Lifts: 4 passenger + 2 service on each floor Kids Play/Creche Area: Yes Other shopping centres/malls in 6 km radius: 8 Mall Management : In-House Competitive Advantage: All under one roof. Semi premium retail, entertainment and leisure complex

Location: NH-8, Opp 32nd Milestone City: Gurgaon Status: Under Construction Operational from(Planned: 2007 Total Land Area: 1,37,000 sq.ft Total Mall Area: 5,58,000 sq.ft No. of Floors: G+4 Gross Leasable Area (GLA): 2,20,000 sq.ft Space for No of 4-wheelers: 575 Catchment Area: South City, Sector 15/, 30, 31 and 40 Other shopping centres/malls in 6 km radius: Grand Mall , Gurgaon, Mega Mall, Gurgaon Competitive Advantage: Location, Affluent Catchment

TENANT MIX

Anchor-1: Aditya Birla Retail Ltd. Category/Format: Hypermarket Area occupied: 80,000 sq.ft Anchor-2: Lifestyle/ Max Fashion Category/Format: Department Store Area occupied: 36,000 sq.ft Anchor-3: Cinemax Category/Format: Multiplex Area occupied: 35,000 sq.ft Anchor-4: Hot Brands Category/Format: Catering 187

TENANT MIX

Anchor-1: Reliance Fresh Category/Format: Supermarket Status: Booked Area occupied: 15,000 sq.ft Anchor-2: DT Cinemas Category/Format: Multiplex Status: Booked No of Screens/Total Seating Capacity: 2 Screens/600 seats Other Brands/ Retailers: Bombay selections, Archies, Roop Sarees, Meena Bazaar, The Host Restaurant, etc

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MALL PROFILE

DLF Retail Developers Limited

SOUTH POINT

TOWN SQUARE

MALL OF INDIA

Location: Main Sector Road (Near to DLF Golf and Country Club) City: Gurgaon Status: Under Construction Operational from(Planned): 2007 Total Land Area: 1,37,000 sq.ft Total Mall Area: 4,78,000 sq.ft No. of Floors: G+4 Gross Leasable Area (GLA): 2,80,000 sq.ft Space for No of 4-wheelers: 600 Catchment Area: DLF City Premium condominiums- The Aralias, The Magnolias, The Pinaccle, Westend Hieghts, Trinity Towers, Carlton Estate, Princeton Estate, The Royalton Tower, The Icon, Exclusive Floors, and many other surrounding colonies like Suncity, Rail Vihar, to name a few Other shopping centres/malls in 6 km radius: Grand Mall, Mega Mall, Gurgaon Competitive Advantage: Location, Affluent catchment

Location: Sector 18, Noida, Opp Radisson Hotel City: Noida Status: Under Construction Operational from(Planned): Fiscal 2009 Total Land Area: 5,85,000 sq.ft Total Mall Area: 22,90,000 sq.ft No. of Floors: G + 5 Gross Leasable Area (GLA): 20,20,000 sq.ft Space for No of 4-wheelers: 3,000 Catchment Area: Noida, Greater Noida, Maharani Bagh, Friends Colony, Defence Colony and other adjoining upmarket residential pockets like Greater Kailash, Sarita Vihar to name a few Other shopping centres/malls in 6 km radius: Centrestage Mall, Sab Mall, Great India Place Competitive Advantage: Location, Magnitude of the project, Affluent catchment, Design

Location: On the National Highway, NH-8 City: Gurgaon Status: Under Construction Operational from(Planned): 2010 Total Land Area: 14,41,000 sq.ft Total Mall Area: 55,23,000 sq.ft Gross Leasable Area (GLA): 39,00,000 sq.ft Space for No of 4-wheelers: 8,000 Catchment Area: DLF Phase- I, II, III, Udyog Vihar, MG Road Other shopping centres/malls in 6 km radius: Ambi Mall, City Centre, Grand Mall, MGF Plaza, MGF Metropolitan Competitive Advantage: Location, Magnitude of the project. Slated to be the largest mall in India

TENANT MIX

TENANT MIX

Anchor-1: The Home Town Status: Booked Area occupied: 74,000 sq.ft Anchor-2: Bombay Selection Status: Booked Area occupied: 20,000 sq.ft

Anchor-1: Westside Category/Format: Department Store Status: Under Negotiation Anchor-2: DT Cinemas Category/Format: Multiplex Status: Booked No of Screens: 6 Screens

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MALL PROFILE DLF Retail Developers Limited

STAR MALL

SOUTH POINT

TOWN SQUARE

Location: NH-8, Opp 32nd Milestone City: Gurgaon Status: Under Construction Operational from(Planned): 2007 Total Land Area: 1,37,000 sq.ft Total Mall Area: 5,58,000 sq.ft No. of Floors: G+4 Gross Leasable Area (GLA): 2,20,000 sq.ft Space for No of 4-wheelers: 575 Catchment Area: South City, Sector 15/, 30, 31 and 40 Other shopping centres/malls in 6 km radius: Grand Mall, Gurgaon, Mega Mall, Gurgaon Competitive Advantage: Location, Affluent Catchment

Location: Main Sector Road (Near to DLF Golf and Country Club) City: Gurgaon Status: Under Construction Operational from(Planned): 2007 Total Land Area: 1,37,000 sq.ft Total Mall Area: 4,78,000 sq.ft No. of Floors: G+4 Gross Leasable Area (GLA): 2,80,000 sq.ft Space for No of 4-wheelers: 600 Catchment Area: DLF City Premium condominiums- The Aralias, The Magnolias, The Pinaccle, Westend Hieghts, Trinity Towers, Carlton Estate, Princeton Estate, The RoyaltonTower, The Icon, Exclusive Floors, and many other surrounding colonies like Suncity, Rail Vihar, to name a few Other shopping centres/malls in 6 km radius: Grand Mall, Mega Mall, Gurgaon Competitive Advantage: Location, Affluent catchment

Location: Sector 18, Noida , Opp Radisson Hotel City: Noida Status: Under Construction Operational from(Planned): Fiscal 2009 Total Land Area: 5,85,000 sq.ft Total Mall Area: 22,90,000 sq.ft No. of Floors: G + 5 Gross Leasable Area (GLA): 20,20,000 sq.ft Space for No of 4-wheelers: 3000 Catchment Area: Noida, Greater Noida, Maharani Bagh, Friends Colony, Defence Colony and other adjoining upmarket residential pockets like Greater Kailash, Sarita Vihar to name a few Other shopping centres/malls in 6 km radius: Centrestage Mall, Sab Mall, Great India Place Competitive Advantage: Location, Magnitude of the project, Affluent catchment, Design

TENANT MIX

TENANT MIX

Anchor-1: The Home Town Status: Booked Area occupied: 74,000 sq.ft Anchor-2: Bombay Selection Status: Booked Area occupied: 20,000 sq.ft

Anchor-1: Westside Category/Format: Department Store Status: Under Negotiation Anchor-2: DT Cinemas Category/Format: Multiplex Status: Booked No of Screens: 6 Screens

TENANT MIX

Anchor-1: Reliance Fresh Category/Format: Supermarket Status: Booked Area occupied: 15,000 sq.ft Anchor-2: DT Cinemas Category/Format: Multiplex Status: Booked No of Screens/Total Seating Capacity: 2 Screens/600 seats Other Brands/ Retailers: Bombay selections, Archies, Roop Sarees, Meena Bazaar, The Host Restaurant, etc

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MALL PROFILE

DLF Retail Developers Limited

MALL OF INDIA

SOUTHCOURT

COURTYARD

Location: On the National Highway NH-8 City: Gurgaon Status: Under Construction Operational from(Planned): 2010 Total Land Area: 14,41,000 sq.ft Total Mall Area: 55,23,000 sq.ft No. of Floors: NA Gross Leasable Area (GLA): 39,00,000 sq.ft Space for No of 4-wheelers: 8000 Catchment Area: DLF Phase-I, II, III, Udyog Vihar, MG Road Other shopping centres/malls in 6 km radius: Ambi Mall, City Centre, Grand Mall, MGF Plaza, MGF Metropolitan Competitive Advantage: Location , Magnitude of the project. Slated to be the largest mall in India

Location: Saket District Centre, Plot A1, Near Marriot Hotel, Saket City: New Delhi Status: Under Construction Operational from(Planned): 2009 Total Land Area: 1,02172 sq.ft Total Mall Area: 5,79,000 sq.ft No. of Floors: G+7 Gross Leasable Area (GLA): 4,20,000 sq.ft Space for No of 4-wheelers: 721 coupled with DDA Surface Parking Considerations on choice of location: Demographics, Exact location, Future potential, Competitive Landscape etc Catchment Area: Saket, Sainik Farms, Panchseel Enclave, Pushp Vihar, Gulmohar Park, Hauz Khas, Malviya Nagar, GK, South Extension to name a few Other shopping centres/malls in 6 km radius: Up coming projects like Courtyard from DLF, Select City Walk, Square One mall, MGF Mall, Projects in Vasant Kunj Competitive Advantage: Location, 2 anchor stores spread out on all the floors, Design

Location: Saket District Centre, Plot A4, Near Marriot Hotel, Saket City: New Delhi Status: Under Construction Operational from(Planned): 2008 Total Land Area: 1,68,496 sq.ft Total Mall Area: 10,60,000 sq.ft No. of Floors: G+7 Gross Leasable Area (GLA): 6,60,000 sq.ft Space for No of 4-wheelers: 1000 coupled with DDA Parking Considerations on choice of location: Demographics, Exact location, Future potential, Competitive Landscape etc Catchment Area: Saket, Sainik Farms, Panchseel Enclave,Pushp Vihar,Gulmohar Park, Hauz Khas, Malviya Nagar, GK, South Extension to name a few Other shopping centres/malls in 6 km radius: Up coming projects like Courtyard from DLF, Select City Walk, Square One mall, MGF Mall, Projects in Vasant Kunj Competitive Advantage: Location, Mixed Land Use

TENANT MIX

Anchor-1: Debenhams Category/Format: Department Store Status: Booked Area occupied: 79,000 sq.ft Anchor-2: DT Cinemas Category/Format: Multiplex Status: Booked Area occupied: 64,000 sq.ft

Anchor-1: Lifestyle Category/Format: Department Store Status: Booked Area occupied: 60,000 sq.ft Anchor-2: Landmark Category/Format: Lesuire Status: Booked Area occupied: 40,000 sq.ft

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TENANT MIX

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MALL PROFILE DLF Retail Developers Limited

PROMENADE

EMPORIO

CITY CENTRE

Location: Nelson Mandela Road, Vasant Kunj City: New Delhi Status: Under Construction Operational from(Planned): 2008 Total Land Area: 2,77,393 sq.ft Total Mall Area: 7,42,000 sq.ft No. of Floors: G+2 Gross Leasable Area (GLA): 4,60,000 sq.ft Space for No of 4-wheelers: 950 cars Considerations on choice of location: Demographics, Exact location, Future potential, Competitive Landscape etc Catchment Area: Vasant Vihar,Vasant Kunj,Chanakya Puri, Shanti Niketan, Anand Niketan, Safdurjung,Green Park, Sainik Farms, WestEnd, Diplomatic Enclave Other shopping centres/malls in 6 km radius: Ambi Malls, Courtyard and South Court in Saket, Community Centres, Vasant Kunj Competitive Advantage: Location, Premium Brands

Location: Nelson Mandela Road, Vasant Kunj City: New Delhi Status: Under Construction Operational from (Planned): 2008 Total Land Area: 1,64,628 sq.ft Total Mall Area: 6,71,000 sq.ft Gross Leasable Area (GLA): 3,20,000 sq.ft Space for No of 4-wheelers: 900 cars Considerations on choice of location: Demographics, Exact location, Future potential, Competitive Landscape etc Catchment Area: Vasant Vihar, Vasant Kunj, Chanakya Puri, Shanti Niketan, Anand Niketan, Safdurjung, Green Park, Sainik Farms, WestEnd, Diplomatic Enclave Other shopping centres/malls in 6 km radius: None as such since this has been positioned as a luxury mall Competitive Advantage: Currently the only project catering exclusively to the luxury segment

Location: A Block, Shalimar Bagh City: New Delhi Status: Under Construction Operational From(Planned): 3rd quarter of 2007 Total Land Area: 1,50,000 sq.ft Total Mall Area: 3,75,000 sq.ft No. of Floors: G+3 Gross Leasable Area (GLA): 2,50,000 sq.ft Space for No of 4-wheelers: 550 Considerations on choice of location: Demographics, Exact location, Future potential, Competitive Landscape etc Catchment Area: Pitampura, Rohini, Punjabi Bagh, Karol Bagh, Ashok Vihar, Model Town, Dr. Mukherjee Nagar, Kamla Nagar and Delhi UniversityNorth Campus Other shopping centres/malls in 6 km radius: Unitech Metro Walk in Rohini, North Ex Mall in Rohini, North Square mall in Pitampura Competitive Advantage: First mover advantage in Shalimar Bagh

TENANT MIX

TENANT MIX

Anchor-1: DT Cinemas Category/Format: Multiplex Area occupied: 85,000 sq.ft

Anchor-1: Pantaloon & Food Bazaar Area occupied: 45,000 sq.ft Anchor-2: DT Cinemas Category/Format: Multiplex Area occupied: 30,000 sq.ft

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MALL PROFILE

DLF Retail Developers Limited

THE GALLERIA

JASOLA TOWERS

CITY COURT

Location: Mayur Vihar District Centre City: New Delhi Status: Under Construction Operational From(Planned): Fiscal 2007 Total Land Area: 59,00,000 sq.ft Total Mall Area: 1,83,000 sq.ft No. of Floors: G+2 Gross Leasable Area (GLA): 1,68,000 sq.ft Space for No of 4-wheelers: 100 Considerations on choice of location: Demographics, Exact location, Future potential, Competitive Landscape etc Catchment Area: Mayur Vihar Phase 1, 2 & 3, Patparganj, Indraprastha,Noida Sector 15A & 14A, Vasundhara Enclave, Pandav Nagar Other shopping centres/malls in 6 km radius: EDM, Ghaziabad, Pacific Mall, Competitive Advantage: Next to Reliance Retail, Close to Metro Station

Location: Jasola District Centre City: New Delhi Status: Under Construction Operational From(Planned): Fiscal 2008 Total Land Area: 1,38,000 sq.ft Total Mall Area: 10,76,000 sq.ft No. of Floors: G + 12 Gross Leasable Area (GLA) ): 8,35,000 sq.ft Space for No of 4-wheelers: 200 Considerations on choice of location: Demographics, Exact location, Future potential, Competitive Landscape etc Catchment Area: Sarita Vihar,Noida, East of Kailash,Greater Kailash-1 &2, Panchsheel Enclave, Chirag Delhi Other shopping centres/malls in 6 km radius: None as such Competitive Advantage: Tallest complex in the vicinity, superior retail mix, largest development, Mixed land use , walk to work concept

Location: Sikanderpur, Near DLF Phase- 1 City: Gurgaon Status: Under Construction Operational From(Planned): Fiscal 2009 Total Land Area: 93,00,000 sq.ft Total Mall Area: 2,67,000 sq.ft Gross Leasable Area (GLA) : 2,17,000 sq.ft Space for No of 4-wheelers: 125 Considerations on choice of location: Demographics, Location Catchment Area : DLF Phase- I,II,III, V, MG Road Other shopping centres/malls in 6 km radius: City Centre, Mega Mall, Grand Mall, MGF Metropolitan, MGF Mega City to name a few Competitive Advantage : Mixed Land use

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MALL PROFILE E-CITY ENTERTAINMENT(I) PVT LTD

FUN REPUBLIC-JAMMU

FUN REPUBLIC - UDAIPUR

Location: HariNiwas Palace,The Palace City: Jammu,J & K Status: Under Planning Operational From (Planned): December, 2009 Total Investment in the Mall: Rs.100 Crore Total Land Area: 2,39,574 sq.ft Total Mall Area: 7,58,000 sq.ft No. of Floors: 3 Gross Leasable Area: 5,20,000 sq.ft GLA: GFA Ratio: 68:32 Leased/ Sold space ratio: All Spaces leased only Leasing Agents/ Companies: EPMS CAM Charges: As per actuals in 2009 Rental Model: Fixed Minimum Rent Tenant Mix : Hyper/ Departmental/ Small format retail/ Entertainment/Food Court and Cinemas Atrium area: 17,000 sq.ft Food Court Area: 13,500 sq.ft Parking Area: 700+ (2 basement & open) No of Escalators: 18 Levels connected with Escalators: 4 No. of Lifts: 12 Kids Play/ Creche Area: Yes Competitive Advantage : First Mover mega mall, best location in the city, best tenant mix, automated parking, escalators and travelators, all shops front visible from attrium Market Area: Central to the city Mall Management: Outsourced to EPMS Any other details: Mega Mall with independent hotel block and open spaces, situated in heritage palace

Location: Old Paras Cinema complex City: Udaipur Status: Under Construction Operational From (Planned): March, 2009 Total Investment in the Mall: Rs.25 crore Total Land Area: 51,590 sq.ft Total Mall Area: 1,65,000 sq.ft No. of Floors: 4 Gross Leasable Area: 1,18,089 sq.ft GLA: GFA Ratio: 70:30 Leased/ Sold space ratio: All Spaces leased only Leasing Agents/ Companies: EPMS Rental Model: Fixed Minimum Rent Tenant Mix : Hyper /Departmental and Cinemas Atrium area: 1,000 sq.ft Parking Area: 300+ No of Escalators: 6 Levels connected with Escalators: 3 No. of Lifts: 3 Kids Play/ Creche Area: Yes Competitive Advantage: Best location in the city, food and hyper model only Market Area: Well known established destination of the city Mall Management: Outsourced to EPMS

193

FUN REPUBLICCHANDIGARH Location: Mani Manjra City: Chandigarh Status: Operational Operational From (Planned): 28th November 2003 Total Land Area: 96,200 sq.ft Total Mall Area: 96,200 sq.ft No. of Floors: 4 Gross Leasable Area (GLA): 88,500 sq.ft Leased/ Sold space ratio: All leased CAM Charges : Rs. 18 per sq.ft/month Rental Model: License and lease Atrium area: 6,450 sq.ft Shopping Area: 8,450 sq.ft Food Court Area: 5,493 sq.ft Leisure & Entertainment Area: 16,020 sq.ft Services Area: 38,807 sq.ft Parking Area: 12,000 sq.ft Space for No of 2-wheelers: 80 No. of Lifts: 4 Kids Play/ Creche Area: 1,280 sq ft Competitive Advantage: First Mover Advantage backed by Services & Customer Focus Market Area: Manimajra Average Footfalls on Week days: 15,000 Average Footfall on Weekends: 25,000 Mall Management: Outsourced to EPMS

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MALL PROFILE

E-CITY ENTERTAINMENT(I) PVT LTD

ERA INFRASTRUCTURE (INDIA) LTD.

FUN REPUBLIC-LUCKNOW

ERA MALL-MEERUT

ERA MALL-AGRA

Location: Lohia Path, Gomti Nagar City: Lucknow Status: Operational Operational From: 2nd Februrary 2007 Total Investment in the Mall: Rs.100 Crore Total Land Area: 17,2305 sq.ft Total Mall Area: 5,79,742 sq.ft No. of Floors: 10 Gross Leasable Area: 3,68,823 sq.ft GLA: GFA Ratio: 63:37 Leased/ Sold space ratio: All Spaces leased only Leasing Agents/ Companies: Jeerath Properties, Trammell Crow Meghraj Property Consultants Pvt. Ltd. CAM Charges: Rs.20 per sq.ft/month Atrium area: 14,962 sq.ft Shopping Area: 2,37,319 sq.ft Food Court Area: 21,335 sq.ft Leisure & Entertainment Area: 49,320 sq.ft. Services Area: 1,27,987 sq.ft No of Escalators: 14 Levels connected with Escalators: 5 No. of Lifts: 10 Promotion schemes: Fun Jashn Market Area: Gomti Nagar, Gokhle Marg, Cantt, Mahanagar, Indra Nagar, Aliganj Other Shopping centres/ malls in 6 km radius: East End Mall & SaharaGanj Average Footfalls on Week days: 11,214 Average Footfall on Weekends: 23,404 Mall Management: Outsourced to

Location: Delhi - Meerut Road, Meerut, U.P. City: Meerut (U.P.) Status: Under Construction Operational from(Planned): 2008 Total Land Area: 55,290 sq.ft Total Mall Area: 2,00,000 sq.ft No. of Floors: LGF + GF + 3 Gross Leasable Area (GLA): 1,34,975 sq.ft Leased/ Sold space ratio: Only on Lease Module CAM Charges: As per actuals with the cap, decided by the Management. Rental Model: All Tenant Mix: Apparels, Footwear, Food Court, Restaurant, Entertainment, Anchor, Hypermarket. Etc. Space for No of 4-wheelers: 120 No of Escalators: 10 Levels connected with Escalators: 4 Floors No. of Lifts: 2+1 Competitive Advantage: Heart of the Meerut City Other Shopping centres/ malls in 6 km radius: Queens Mall, Ansal, PVS, Crown Interiors, Model Plaza etc.

Location: Plot No. MT-01, Sector - 12A, Sikandra Schema Yojna, Sikandra, Agra Operational from(Planned): 2009 Total Land Area : 59,514 sq.ft. Total Built-up Area: Approx. 2,25,000 sq.fat. Gross Leasable Area (GLA): 1,47,093 sq.ft. Leased/ Sold space ratio: Only on Lease Module CAM Charges: As per actuals with the cap, decided by the Management. Rental Model: All Tenant Mix: Apparels, Footwear, Food Court, Restaurant, Entertainment, Anchor, Hypermarket. Etc. Space for No of 4-wheelers: 150 No of Escalators: 8 Levels connected with Escalators: 4 No. of Lifts: 2+1 Kids Play/ Creche Area: 2,371 sq.ft. Competitive Advantage: Mall in the upcoming residential developments on the enterence of the Agra. Other Shopping centres/ malls in 6 km radius: Sanjay Palace, Bhawna Plaza, etc.

TENANT MIX

Anchor-1: Chunmun Anchor-2: Paul Garments Anchor-3: Snow White

194

JAGRIT INFRASTRUCTURE PVT.LTD.

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MALL PROFILE M2K ENTERTAINMENT PVT LTD

BB MALL

M2K PITAMPURA

M2K ROHINI

Location: Neelam Chowk, Bhiwadi City: Bhiwadi Status: Under Construction Total Investment in the Mall: Rs.50 Crore Total Land Area: 65,155 sq.ft. Total Mall Area: 1,25,000 sq.ft. No. of Floors: 6 Gross Leasable Area (GLA): 1,00,000 sq.ft. Leasing Agents/ Companies: Cushman & Wakefield, Realistic Realtors CAM Charges: As per actuals Rental Model: Fixed Min.Rent/% Rent/ Revenue Sharing Food Court Area: 7,930 sq.ft. Parking Area: 50,000 sq.ft No of Escalators: 2 No. of Lifts: 2 Capsule Lifts, 2 lifts for Hotel Guests, 1 service Lift Other shopping centres/malls in 6 km radius: Parshavnath City Centre RTech Capital Mall Mall Management : Outsourced

Location: M2K Pitampura City: New Delhi Status: Operational Operational From: 2005 Total Mall Area: 70,000 sq.ft No. of Floors: G + 3 Gross Leasable Area (GLA): 70,000 sq.ft CAM Charges: Rs.23 per sq.ft/month Rental Model: Fixed Minimum Rental No of Escalators: 3 Levels connected with Escalators: 3 No. of Lifts: 2 Kids Play/ Creche Area: Yes Market Area : Ranibagh, Kohat Enclave,Chandra Lok Vihar, Prashant Vihar Other Shopping centres/ malls in 6 km radius: Aggarwal City Plaza, Unitech Mall Average Footfalls on Week days: 5,000 Average Footfall on Weekends: 7,000 Mall Management : Outsourced

Location: M2K Rohini City: New Delhi Status: Operational Operational From: 2002 Total Mall Area: 40,000 sq.ft No. of Floors: Ground Gross Leasable Area (GLA): 40,000 sq.ft CAM Charges: Rs.25 per sq.ft/month Rental Model: Fixed Minimum Rental Market Area: Rohini, Shalimar Bagh Other Shopping centres/ malls in 6 km radius: V3S, Aggarwal City Plaza , Parsvnath Average Footfalls on Week days: 8,000 Average Footfall on Weekends: 9,000 Mall Management : Outsourced

TENANT MIX

Anchor-1: Big Bazaar, Hypermarket Status: Under Negotiation Area occupied: 20,000 sq.ft Anchor-2: Reliance Retail Category/Format: Supermarket Status: Under Negotiation Area occupied: 14,000 sq.ft Anchor-3: Spencer Category/Format: Supermarket Status: Under Negotiation Area occupied: 20,000 sq.ft Anchor-4: Fun Cinema Category/Format: Multiplex Area occupied: 17,000 sq.ft 195

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MALL PROFILE

M2K ENTERTAINMENT PVT LTD

MGF DEVELOPMENTS

M2K MEGA MALL

METROPOLITAN MALL

PLAZA MALL

Location: AB Road, Indore City: Indore Status: Under Construction Operational From (Planned): March, 2008 Total Mall Area: 3,50,000 sq.ft No. of Floors: LG + 5 Gross Leasable Area (GLA): 3,50,000 sq.ft Leased/ Sold space ratio: 100 % Leased Rental Model: Fixed Minimum Rental No of Escalators: 17 Levels connected with Escalators: 6 No. of Lifts: 4 Kids Play/ Creche Area: Yes Market Area: A.B. Road, M. G. Road, Scheme No. 54, 74,78 & Vijay Nagar Other Shopping centres/ malls in 6 km radius: Treasure Island, Mangal City Mall Management: Outsourced

Location: MG Road City: Gurgaon Status: Operational Operational From (Planned): January, 2003 Total Mall Area: 350,000 sq.ft No. of Floors: 4 Gross Leasable Area (GLA): 280,000 sq.ft Leased/ Sold Space Ratio: 50/50 Leasing Agents/ Companies: JLL/CBRE/TCM/ BROKERS CAM Charges: On Actuals Approx Rs.20 per sq ft/ month Rental Model: Fixed Food Court Area: 15,000 sq.ft Leisure & Entertainment Area: 10,000 sq.ft Services Area: 10,000 sq.ft Parking Area: 80,000 sq.ft Space for No of 4-wheelers: 650 Space for No of 2-wheelers: 400 No of Escalators: 6 No. of Lifts: 8 Promotion schemes: 100% Occupacy throughout the year Catchment Area: NCR Other shopping centres/malls in 6 km radius: Sahara Mall/City Centrte Average Footfall on Week Days: 22,000 -25,000 Average Footfall on Weekends: 42,000-45,000 Mall Management: In-house Facility Management: CBRE

Location: MG Road City: Gurgaon Status: Operational Operational From (Planned): November, 2003 Total Mall Area: 100,000 sq.ft No. of Floors: 5 Gross Leasable Area (GLA): 100,000 sq.ft Leased/ Sold Space Ratio: 50/50 Leasing Agents/ Companies: JLL/CBRE/TCM/ BROKERS CAM Charges: On Actuals Approx Rs.20 per sq ft/ month Rental Model: Fixed Services Area: 6,000 sq.ft Parking Area: 20,000 sq.ft Space for No of 4-wheelers: 350 Space for No of 2-wheelers: 250 No of Escalators: 6 No. of Lifts: 2 Promotion schemes: 100% Occupacy throughout the year Catchment Area: NCR Other shopping centres/malls in 6 km radius: Sahara Mall/City Centrte Average Footfall on Week Days: 8,000-9,000 Average Footfall on Weekends: 12,000-14,000 Mall Management: In-house Facility Management: CBRE Competitive Advantage: Concept mall / home / furnishings/ white good / consumer durables

TENANT MIX

TENANT MIX

Anchor-1: PVR Anchor-2: Shoppers Stop Anchor-3: THS Anchor-4: Bowling Alley

Anchor-1: Lifestyle Home

196

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MALL PROFILE MGF DEVELOPMENTS

CITY SQUARE MALL

MEGA CITY

METROPOLITAN

Location: Rajouri Garden City: New Delhi Status: Operational Operational From (Planned): October, 2005 Total Mall Area: 200,000 sq.ft No. of Floors: 4 Gross Leasable Area (GLA): 1,10,000 sq.ft Leased/ Sold Space Ratio: 50/50 Leasing Agents/ Companies: JLL/CBRE/TCM/BROKERS CAM Charges: On Actuals Approx Rs.20 per sq ft/ month Rental Model: Fixed Food Court Area: 12,000 sq.ft Leisure & Entertainment Area: 2,000 sq.ft Services Area: 6,000csq.ft Parking Area: 30,000 sq.ft Space for No of 4-wheelers: 400 Space for No of 2-wheelers: 300 No of Escalators: 10 No. of Lifts: 3 Promotion schemes: 100% Occupacy throughout the year Catchment Area: NCR Other shopping centres/malls in 6 km radius: West Gate/TDI Mall Average Footfall on Week Days: 18,000-20,000 Average Footfall on Weekends: 24,000-26,000 Mall Management: In-house Facility Management: CBRE Competitive Advantage: Great brand mix, activity for all ages, high level of maintainence / one stop for shopping / entertainment and food

Location: MG Road City: Gurgaon Status: Operational Operational From (Planned): December, 2006 Total Mall Area: 250,000 sq.ft No. of Floors: 4 Gross Leasable Area (GLA): 1,50,000 sq.ft Leased/ Sold Space Ratio: 50/50 Leasing Agents/ Companies: JLL/CBRE/TCM/BROKERS CAM Charges: On Actuals Approx Rs.20 per sq ft/ month Rental Model: Fixed Food Court Area: 12,000 sq.ft Leisure & Entertainment Area: 2,000 sq.ft Services Area: 10,000 sq.ft Parking Area: 90,000 sq.ft Space for No of 4-wheelers: 700 Space for No of 2-wheelers: 400 No of Escalators: 4 No. of Lifts: 5 Catchment Area: NCR Other shopping centres/malls in 6 km radius: Sahara Mall/City Centrte Average Footfall on Week Days: 10,000-12,000 Average Footfall on Weekends: 15,000-18,000 Mall Management: In-house Facility Management: CBRE Competitive Advantage: Great brand mix, activity for all ages, high level of maintainence / one stop for shopping / entertainment and food

Location: 22 Godam Chowk City: Jaipur Status: Operational Operational From (Planned): May, 2007 Total Mall Area: 150,000 sq.ft No. of Floors: 5 Gross Leasable Area (GLA): 1,40,000 sq.ft Leased/ Sold Space Ratio: 50/50 Leasing Agents/ Companies: JLL/CBRE/TCM/BROKERS CAM Charges: On Actuals Approx Rs.20 per sq ft/month Rental Model: Fixed Food Court Area: 12,000 sq.ft Leisure & Entertainment Area: 6,000 sq.ft Catchment Area: Jaipur Other shopping centres/malls in 6 km radius: Crystal Mall Average Footfall on Week Days: 7,000-8,000 Average Footfall on Weekends: 10,000-12,000 Mall Management: In-house Facility Management: CBRE Competitive Advantage: Great brand mix, activity for all ages, high level of maintainence / one stop for shopping / entertainment and food

TENANT MIX

TENANT MIX

Anchor-1: Spencers Anchor-2: CTC Plaza

Anchor-1: Lifestyle 197

TENANT MIX

Anchor-1: Lifestyle Anchor-2: Big Bazaar

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MALL PROFILE

MGF DEVELOPMENTS

OMAXE

METROPOLITAN

METROPOLIS

OMAXE CONNAUGHT PLACE

Location: Saket City: New Delhi Status: Under Constructions Date of Launch/ Planned launch schedule: 39362 Gross Leasable Area (GLA): 1,65,000 sq.ft Leased/ Sold Space Ratio: 50/50 Services Area: 8,000 sq.ft Parking Area: 40,000 sq.ft Space for No of 4-wheelers: 400 Space for No of 2-wheelers: 250 No of Escalators: 11 No. of Lifts: 4 Catchment Area: NCR

Location: MG Road City: Gurgaon Status: Under Constructions Gross Leasable Area (GLA): 6,50,000 sq.ft Leased/ Sold Space Ratio: 50/50 Food Court Area: 18,000 sq.ft Leisure & Entertainment Area: 12,000 sq.ft Services Area: 18,000 sq.ft Parking Area: 1,80,000 sq.ft Space for No of 4-wheelers: 700 Space for No of 2-wheelers: 400 Catchment Area: NCR

Location: Sector beta-2, Greater Noida Operational From (Planned): March, 2009 Total Mall Area: 14,00,000 sq.ft No of Floors: 5+ Hotel Block Number of Retail Floors: AF, GF, FF, SF Average Floor Plate: 2,00,000 sq.ft Multiples / No of Screens: Fame/8 Screens Anchors: Reliance, Big Jos, Piramyd, Ritu wears, Standard Max, Paul Garments, The Creations Parking (Cars): 5000 Parking Basements: 1 Hotel: Yes (4th TO 19th) Banquet: NO Brands Finalized: Reliance Hyper Mart, Fame - 8 Screen Multiplex, SRS Value Bazaar, Pizza Hut, Costa, KFC, Woodland, Nextt, Guess, Body Shop, Monsoon Accessories, Puma, Meena Bazaar, Marks & Spencer, Lacoste, Weekender Kids, Weekender, Titan, Reebok, Lilliput, Sensa, AO's, Womens Secret, Catmoss, Vibes, Ostermann, M&B Footwear, Chikankari, Xenia Artificial Jewellery, Titan, Adams, Anoothi, Nike, Franco Leome, Bruno Manetti, Koutons, K-Lounge, Killer Jeans, Spykar Jeans, Bonsoir, Cantabil, Liberty, Royal Sporting House, Tycoon, TCG, Snowhite, Blond n Bliss, Sweet Dreams, Citizen, Metro Shoes, Lap Kok, AOV Forex, Panna Sarees, BigJo's. , Provogue, Jammin, Kirby, Odyssey Under Process:- UCB, Levis, Arvind Brands, Foot Mart, Madura Brands, Raymonds, and many more...

198

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MALL PROFILE OMAXE

NRI CITY CENTER

WEDDING MALL

WEDDING MALL

Location: Pari Chowk, Expressway City: Greater Noida Operational From (Planned): October, 2007 Total Mall Area: 1,31,650 sq.ft No. of Floors: 4 No. of Retail Floors: GF, UGF, FF Average Floor Plate: 50,000 sq.ft Multiplex / No of Screens: Movie Times/ 2 Screen Parking (Cars): 500 Parking Basements: 2 Brands Finalized: archies, tantra, jaypee gifts, good things, café coffee day & finalising soon oxembereg, parker, zodiac, timex watches, Lease Rates: Rs.70-120 per sq.ft

Location: Mall Road, Opp. Kali Devi Temple City: Patiala Operational From (Planned): December, 2007 Total Mall Area: 2,90,000 sq.ft No. of Floors: 5 No. of Retail Floors: AF, GF, UGF, FF Average Floor Plate: 60,000 sq.ft Multiplex / No of Screens: Fame/5 Screen Anchors: Spencers Parking (Cars): 500 Parking Basements: 2 Hotel: Yes (SF) Banquet: No Brands Finalized: Aswera, Koutons, Cantabil, Anoothi, Meena Bazar, Archies, Dawar Footwear, Sona, Liliput, Pizza Corner, Killer Jeans, Hakoba, Fame, Kapsons, Levis/Ucb, Woodland, Biba, Titan, Sensa, Nike, Svaasa, M&B, Spykar, Inexcess, Catmoss. Lease Rates: Rs.65-120 per sq.ft

Location: Near Bhagwan Talkies, NH-2, Delhi-Aagra Road City: Agra Operational From (Planned): August, 2007 Total Mall Area: 1,90,000 sq.ft No. of Floors: 4 No. of Retail Floors: AF, GF, FF Average Floor Plate: 48,900 sq.ft Multiplex / No of Screens: Movie Times/3 Screen Anchors: Spencers Parking (Cars): 500 Parking Basements: 2 Hotel: No Banquet: No Brands Finalized: Archies, Anoothi, Meena Bazar, Movie Times, Dawar Footwear, Costa Coffee, Pizza Hut, Ctc Plaza, Killer Jeans, Hakoba, Machu Pichu Foodcourt, Nike, Ritu Kumar, Svaasa, M&B, Catmoss. Lease Rates: Rs.60-120 per sq.ft

199

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MALL PROFILE

OMAXE

OMAXE NOVELTY

OMAXE TERMINAL MALL

OMAXE PLAZA

Location: Intersection OF Lawrence Road, Mall Road, Novelty Chowk City: Amritsar Operational From (Planned): December, 2007 Total Mall Area: 1,25,000 sq.ft No. of Floors: 6 No. of Retail Floors: AF, GF, FF, SF Average Floor Plate: 21,000 sq.ft Multiplex / No of Screens: Movie Times/3 Screen Anchors: Max Life Style Parking (Cars): 300 Parking Basements: 2 Hotel: No Banquet: No Brands Finalized: Max Life Style, Ritu Kumar, Dawar Footwear, Anoothi, Koutons, Upper Class, Archies, Woodland, Killer Jeans, Cantabil, Liliput, Movie Times, Planet Sports, Nike, Svaasa, Yuvraj Creations, Spykar, M&B. Lease Rates: Rs.70-135 per sq.ft

Location: Airport Road Operational From (Planned): March, 2008 City: Amritsar Total Mall Area: 3,22,269 sq.ft No. of Floors: 7 No. of Retail Floors: AF, GF, FF Average Floor Plate: 65,000 sq.ft Anchors: SRS Value Bazaar Parking (Cars): 500 Parking Basements: 1 Hotel: Yes Banquet: Yes Brands Finalized: SRS Foodcourt, Koutons, Anoothi , Sports Station, Lease Rates: Rs.60-100 per sq.ft

Location: Opp. Park Plaza Hotel, Next to Pizza Hut, Ferozpur Road City: Ludhiana Operational From (Planned): December, 2007 Total Mall Area: 1,70,000 sq.ft No. of Floors: 6 No. of Retail Floors: AF, GF, FF, SF Average Floor Plate: 25,000 sq.ft Multiplex /No of Screens: M2K/ 3 Screen Anchors: Max Life Style Parking (Cars): 300 Parking Basements: 2 Hotel: No Banquet: No Brands Finalized: Killer Jeans, Dawar Footwear, Max Lifestyle, Ritu Kumar, Nike, Inexcess, M2K, Svaasa, Archies, Woodland, Spykar, Tcg, SRS Foodcourt. Lease Rates: Rs.65-140 per sq.ft

200

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MALL PROFILE OMAXE

OMAXE MALL

WEDDING MALL

OMAXE PLAZA

Location: GT Road City: Ludhiana Operational From (Planned): March, 2008 Total Mall Area: 3,24,000 sq.ft No. of Floors: 5 No. of Retail Floors: AF, GF, FF Average Floor Plate: 65,000 sq.ft Multiplex / No of Screens: SRS/ 3 Screen Anchors: SRS Value Bazaar. Parking (Cars): 500 Parking Basements: 1 Hotel: No Banquet: No Brands Finalized: SRS Foodcourt, Koutons, Anoothi Lease Rates: Rs.60-100 per sq.ft

Location: Sohna Road City: Gurgaon Operational From (Planned): December, 2006 Total Mall Area: 1,40,000 sq.ft No. of Floors: 5 No .of Retail Floors: GF, FF, SF, TF Average Floor Plate: 38,000 sq.ft Multiplex / No of Screens: SRS/ 3 Screen Parking (Cars): 450 Parking Basements: 3 Hotel: No Banquet: Yes Brands Finalized: Vivid, Shakuntlam, Dawar Footwear, Srs, Franco Leone, Anoothi, Pinki Creations, Archies, Riwaz, Nakshatra Srs Multiplex. Lease Rates: Rs.60-100 per sq.ft

Location: Sohna Road City: Gurgaon Operational From (Planned): August, 2006 Total Mall Area: 2,65,000 sq.ft No. of Floors: 7 No. of Retail Floors: GF, UGF, FF, SF Average Floor Plate: 40,000 sq.ft Multiplex / No of Screens: SRS/ 2 Screen Anchors: SRS Value Bazaar Parking (Cars): 500 Parking Basements: 3 Hotel: No Banquet: No Brands Finalized: SRS Value Bazar, Pizza Hut, Archies, Moets, Craze Café, Swatch, Stupid Cupid, Airtel, Just Eyes, Srs Multiplex, Koutons, Bistro. Lease Rates: Rs.60-100 per sq.ft

201

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MALL PROFILE

OMAXE

PACIFIC DEVELOPMENT CORPORATION LTD

HOUSE TO HOME

PACIFIC EAST

PACIFIC NORTH

Location: Sohna Road City: Gurgaon Operational From (Planned): December, 2007 Total Mall Area: 1,50,000 sq.ft No. of Floors: 5 No. of Retail Floors: AF, GF, FF, SF Average Floor Plate: 37,000 sq.ft Parking (Cars): 300 Parking Basements: 2 Hotel: No Banquet: No Brands Finalized: Kirby Lease Rates: Rs.50-85 per sq.ft

Location: Kaushambi City: Ghaziabad Status: Operational Operation From (Planned): October, 2005 Total Investment in the Mall: Rs. 75 Crore Total Land Area: 2,04,100 sq.ft Total Mall Area: 5,00,000 sq.ft No. of Floors: 4 ( LG, GF+2) Gross Leasable Area (GLA): 3,50,000 sq.ft GLA: GFA Ratio: 70% CAM Charges: 23 Rental Model: Fixed Minimum Rent Atrium Area: 25,000 sq.ft Shopping Area: 3,50,000 sq.ft+ 50,000 sq.ft Hotel Food Court Area: 20,000 sq.ft Leisure & Entertainment Area: 8000 sq.ft+ 40000 sq.ft Multiplex No of Escalators: 6 No. of Lifts: 2 Average Footfall on Week Days: 15000 Average Footfall on Weekends: 30000 Mall Management: In House

Location: Pitampura City: Pitampura Status: Operational Total Investment in the Mall: Rs. 24 Crore Total Land Area: 43,056 sq.ft Total Mall Area: 80,000 sq.ft No. of Floors: GF+1 Gross Leasable Area (GLA): 4,00,000 sq.ft GLA: GFA Ratio: 50% CAM Charges: 22 Rental Model: Fixed Minimum Rent Atrium Area: 5,000 sq.ft Shopping Area: 50,000 sq.ft Food Court Area: 3,000 sq.ft Leisure & Entertainment Area: 1,000 sq.ft+ 20,000 sq.ft Multiplex Space for No of 4-wheelers: 1,000 Cars Space for No of 2-wheelers: 300 No of Escalators: 1 No. of Lifts: 1 Catchment Area : Pitampura Other shopping centres/malls in 6 km radius: North Square Average Footfall on Week Days: 3,000 Average Footfall on Weekends: 5,000 Mall Management : In House

TENANT MIX

Anchor-1: Spencer Category/Format: Hypermarket Status: Operational Area occupied: 57,000 sq.ft Anchor-2: Westside Category/Format: Department Store Status: Operational Area occupied: 30,000 sq.ft Anchor-3: Globus Category/Format: Department Store

202

TENANT MIX

Anchor-1: Croma Category/Format: Consumer Electronics Area occupied: 12,500 sq.ft Anchor-2: Movie Time

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MALL PROFILE PACIFIC DEVELOPMENT CORPORATION LTD

PACIFIC TAJ

PACIFIC MATHURA

PACIFIC MORADABAD

Location: Fatheabad Road City: Agra Status: Operational Total Investment in the Mall: Rs. 35 Crore Total Land Area: 1,07,640 sq.ft Total Mall Area: 2,50,000 sq.ft No. of Floors: LG, GF+2 Gross Leasable Area (GLA): 1,75,000 sq.ft GLA: GFA Ratio: 70% CAM Charges: 22 Rental Model: Fixed Minimum Rent Atrium Area: 12,000 sq.ft Shopping Area: 1,75,000 sq.ft Food Court Area: 12,000 sq. Ft Leisure & Entertainment Area: 6,000 sq.ft+ 27,500 sq.ft Multiplex Space for No of 4-wheelers: 300 Cars Space for No of 2-wheelers: 100 No of Escalators: 6 No. of Lifts: 2 Catchment Area: Taj Nagari Other shopping centres/malls in 6 km radius: Adlabs/ TDI Average Footfall on Week Days: 8,000 Average Footfall on Weekends: 12,000 Mall Management: In House

Location: NH-2 City: Mathura Status: Under Construction Operational From (Planned): December, 2007 Total Investment in the Mall: Rs. 15 Crore Total Mall Area: 1,50,000 sq.ft No. of Floors: GF+1 Gross Leasable Area (GLA): 1,00,000 sq.ft GLA: GFA Ratio: 67% CAM Charges: On Actual Rental Model: Fixed Minimum Rent Shopping Area: 60,000 sq.ft Food Court Area: 12,000 sq.ft Leisure & Entertainment Area: 3,000 sq.ft+ 20,000 sq.ft Multiplex Space for No of 4-wheelers: 200 cars Space for No of 2-wheelers: 100 No of Escalators: 2 Catchment Area: Mathura Refinery+ Highway traffic Other shopping centres/malls in 6 km radius: Highway Plaza

Location: Kanth Road City: Moradabad Status: Under Construction Operational From (Planned): October, 2008 Total Mall Area: 4,00,000 sq.ft No. of Floors: LG, GF+2 Gross Leasable Area (GLA): 3,50,000 sq.ft GLA: GFA Ratio: 85% CAM Charges: On Actual Rental Model: Fixed Minimum Rent Atrium Area: 18,000 sq.ft Shopping Area: 3,00,000 sq.ft Food Court Area: 14,000 sq.ft Leisure & Entertainment Area: 6,000 sq.ft+ 30,000 sq.ft Multiplex Space for No of 4-wheelers: 1,200 Space for No of 2-wheelers: 200 No of Escalators: 6 No. of Lifts: 2 Catchment Area: Ram ganga Vihar+ Station Road, Civil lines Other shopping centres/malls in 6 km radius: Parsvnath/Tdi Average Footfall on Week Days: NA Average Footfall on Weekends: NA

TENANT MIX

TENANT MIX

Anchor-1: Big Bazaar Category/Format: Hypermarket Area occupied: 35,000 sq.ft Anchor-2: PVR Category/Format: Multiplex Area occupied: 20,000 sq.ft

Anchor-1: Big Bazaar Category/Format: Hypermarket Area occupied: 32,000 sq.ft Anchor-2: Max Lifestyle Category/Format: Department Store Area occupied: 14,000 sq.ft Anchor-3: Fun Cinema

203

TENANT MIX

Anchor-1: Big Bazaar Category/Format: Hypermarket Area occupied: 50,000 sq.ft Anchor-2: Fun Cinema Category/Format: Multiplex Area occupied: 35,000 sq.ft

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MALL PROFILE

PACIFIC DEVELOPMENT CORPORATION LTD

PACIFIC JODHPUR

PACIFIC FIESTA

PACIFIC HINDON

Location: Sardar Samand Road, Near Ummaid Bhavan City: Jodhpur Status: Under Construction Total Mall Area: 8,00,000 sq.ft No. of Floors: LG+GF+4 Gross Leasable Area (GLA): 6,00,000 sq.ft GLA: GFA Ratio: 75% CAM Charges: On Actual Rental Model: Fixed Minimum Rent Atrium Area: 27,000 sq.ft Shopping Area: 5,25,000 sq.ft Food Court Area: 15,000 Leisure & Entertainment Area: 6,000 sq.ft+ 40,000 sq.ft Multiplex Space for No of 4-wheelers: 1,500 Space for No of 2-wheelers: 300 No of Escalators: 12 Other shopping centres/malls in 6 km radius: Tulip/ Ansal

Location: Subhash Nagar, Delhi City: West Delhi Status: Under Construction Total Mall Area: 6,50,000 sq.ft No. of Floors: LG+GF+4 Gross Leasable Area (GLA): 6,00,000 sq.ft GLA: GFA Ratio: 85% CAM Charges: On Actual Rental Model: Fixed Minimum Rent Atrium Area: 35,000 sq.ft Shopping Area: 4,50,000 sq.ft Food Court Area: 15,000 sq.ft Leisure & Entertainment Area: 15,000 sq.ft+ 45,000 sq.ft Multiplex Space for No of 4-wheelers: 2,500 Space for No of 2-wheelers: 500 No of Escalators: 12 Catchment Area: Rajouri/ Tagore garden/ Tilak Nagar Other shopping centres/malls in 6 km radius: MGF/TDI/Today

Location: Mohan Nagar City: Ghaziabad Status: Planning Stage Total Mall Area: 2,50,000 sq.ft No. of Floors: LG+GF+2 Gross Leasable Area (GLA): 2,00,000 sq.ft GLA: GFA Ratio: 80% CAM Charges: On Actual Rental Model: Fixed Minimum Rent Atrium Area: 12,000 sq.ft Shopping Area: 1,60,000 sq.ft Food Court Area: 12,000 sq.ft Leisure & Entertainment Area: 4,000 sq.ft+ 25,000 sq.ft Multiplex Space for No of 4-wheelers: 400 Space for No of 2-wheelers: 100 No of Escalators: 6 Catchment Area: Dilshad Garden, Ghaziabad Other shopping centres/malls in 6 km radius: MMX

TENANT MIX

TENANT MIX

Anchor-1: Globus Category/Format: Department Store Area occupied: 10,000 sq.ft Anchor-2: PVR Category/Format: Multiplex Area occupied: 40,000 sq.ft Anchor-3: Chun Mun Category/Format: Department Store Area occupied: 20,000 sq.ft Anchor-4: Big Bazaar Category/Format: Hypermarket Area occupied: 40,000 sq.ft

Anchor-1: Globus Category/Format: Department Store Area occupied: 10,000 sq.ft Anchor-2: Fun Cinemas Category/Format: Multiplex Area occupied: 40,000 sq.ft Anchor-3: Big Bazaar Category/Format: Hypermarket Area occupied: 40,000 sq.ft

TENANT MIX

Anchor-1: Globus Category/Format: Department Store Area occupied: 12,000 sq.ft Anchor-2: PVR Category/Format: Multiplex Area occupied: 45,000 sq.ft

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PACIFIC DEVELOPMENT CORPORATION LTD

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MALL PROFILE

PARSVNATH DEVELOPERS LTD

PACIFIC DOON

PACIFIC VASANT VIHAR

INDERLOK METRO MALL

Location: Rajpur Road, City: Dehradun Status: Planning Stage Total Mall Area: 5,50,000 sq.ft No. of Floors: LG+GF+4 Gross Leasable Area (GLA): 4,50,000 sq.ft GLA: GFA Ratio: 82% CAM Charges: On Actual Rental Model: Fixed Minimum Rent Atrium Area: 20,000 sq.ft Shopping Area: 4,00,000 sq.ft Food Court Area: 14,000 sq.ft Leisure & Entertainment Area: 6,000 sq.ft+ 32,000 sq.ft Multiplex Space for No of 4-wheelers: 1,000 Space for No of 2-wheelers: 200 No of Escalators: 10 Other shopping centres/malls in 6 km radius: Parsvnath

Location: Vasant Vihar City: Dehradun Status: Planning Stage Total Mall Area: 6,00,000 sq.ft No. of Floors: LG+GF+4 Gross Leasable Area (GLA): 5,00,000 sq.ft GLA: GFA Ratio: 84% CAM Charges: On Actual Rental Model: Fixed Minimum Rent Atrium Area: 20,000 sq.ft Shopping Area: 4,50,000 sq.ft Food Court Area: 15,000 sq.ft Leisure & Entertainment Area: 8,000 sq.ft+ 35,000 sq.ft Multiplex Space for No of 4-wheelers: 1,000 Space for No of 2-wheelers: 200 No of Escalators: 10 Catchment Area: Vasant Vihar

Location: Inderlok Metro Station City: Delhi Status: Partialy Operational Total Mall Area: 1,43,000 sq.ft No. of Floors: 3 CAM Charges: .18 per sq.ft/month Food Court Area: Third Floor Parking Area: 300 cars No of Escalators: 2 Levels connected with Escalators: All No. of Lifts: 2 Market Area: Ashok Vihar, Bharat Nagar, Gulabi Bagh, Shakti Nagar Other Shopping centres/ malls in 6 km radius: No Mall Mall Management: Vasundera Properties

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MALL PROFILE

PARSVNATH DEVELOPERS LTD

PRATAP METRO MALL

TIS HAZARI METRO MALL

Location: Pratap Nagar Metro Station City: Delhi Status: Under -Construction No. of Floors: 3 Floors CAM Charges: Rs.18 per sq.ft/month Parking Area: 200 cars No of Escalators: 2 Levels connected with Escalators: All No. of Lifts: 2 Market Area: Kamla Nagar, Roop Nagar, Rana, Pratap Bagh, Other Shopping centres/ malls in 6 km radius: Inderlok Metro Mall Mall Management: Vasundera Properties

Location: Tis Hazari Metro Station City: Delhi Status: Operational No. of Floors: 2 Floors CAM Charges: Rs.18 per sq.ft/month Parking Area: 200 cars (Car Parking to be maintained by DMRC) Market Area: Tis Hazari, Raj Pura Road, Mori Gate, Kashmiri Gate Mall Management: Vasundera Properties

206

METRO MALL KASHMIRI GATE Location: Kashmiri Gate Metro Station City: Delhi Status: Ready To Move In No. of Floors: 1 Floor CAM Charges: Rs.18 per sq.ft/month Parking Area: 600 cars Market Area: ISBT, Sadar Bazar, Mori Gate, Chandni Chowk Mall Management: Vasundera Properties

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MALL PROFILE PARSVNATH DEVELOPERS LTD

METRO MALL-WELCOME Location: Welcome Metro Mall City: Delhi Status: Planned Total Mall Area: 3,50,000 sq.ft No. of Floors: 6 Floors CAM Charges: Rs.18 per sq.ft/month Parking Area: 1,000 cars No of Escalators: 4 Levels connected with Escalators: All No. of Lifts: 5 Mall Management: Vasundera Properties

MEGA METRO MALL-EAST DELHI Location: Extn Of Metro Mall - Seelam Pur City: Delhi Status: Under-Construction Total Mall Area: 8,00,000 sq.ft No. of Floors: 5 Floor CAM Charges: Rs.18 per sq.ft/month Parking Area: 2000 cars No of Escalators: 6 Levels connected with Escalators: All No. of Lifts: 8

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METRO MALL-SHAHDARA Location: Shahdra Metro Station City: Delhi Status: Ready To Move In No. of Floors: 6 CAM Charges: Rs.18 per sq.ft/month Parking Area: 200 cars No of Escalators: 2 Levels connected with Escalators: All No. of Lifts: 4 Market Area: Vivek Vihar, Shriram Nagar, Kasturba Nagar

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MALL PROFILE

PARSVNATH DEVELOPERS LTD

MAHAATTAN-FARIDABAD

MMX-MOHAN NAGAR

ELEGANZA-DEHRADUN

Location: Sector 20-A, Faridabad (Haryana) City: Faridabad Status: Under-Construction No. of Floors: 4 CAM Charges: Rs. 18 per sq.ft/month Parking Area: 300 Cars Levels connected with Escalators: All Market Area: Sector 9, Sec-10, Sec11, Sec-14, Sec-15, Sec15A

Location: G.T Road Mohan Nagar City: Gaziabad Status: Operational Total Mall Area: 2,50,000 sq.ft No. of Floors: 5 CAM Charges: Rs. 18 per sq.ft/month Parking Area: 300 Cars Levels connected with Escalators: All Market Area: Raj Nagar, Kavi Nagar, Gandhi Nagar

Location: Raj Pura Road City: Partially Operational Total Mall Area: 2,00,000 sq.ft No. of Floors: 4 CAM Charges: Rs. 18 per sq.ft/month Parking Area: 350 Cars Market Area: Mall Road, Raj Nagar

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MALL PROFILE PARSVNATH DEVELOPERS LTD

MALL MATRIX-MOHALI

CITY CENTER-BHIWADI

Location: Sector 74 City: Mohali Status: Under-Construction Total Mall Area: 3,00,000 sq.ft No. of Floors: 4 Floors CAM Charges: Rs.18 per sq.ft/month Parking Area: 450 Cars

City: Bhiwadi Status: Under-Construction Total Mall Area: 2,00,000 sq.ft No. of Floors: 4 Floors CAM Charges: Rs.18 per sq.ft/month Parking Area: 500 Cars

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SHOPPING MALLMORADABAD Location: Ashiana Scheme1,Kant Road City: Moradabad Status: Under-Construction Total Mall Area: 2,00,000 sq.ft No. of Floors: 5 Floors CAM Charges: Rs.18 per sq.ft/month Parking Area: 250 Cars

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MALL PROFILE

PARSVNATH DEVELOPERS LTD

REALTECH GROUP

MALL SONIPAT

REALTECH MALL I

REALTECH MALL II

Location: Highway 1, Sonipat City: Sonipat Status: Under-Construction CAM Charges: Rs.18 per sq.ft/month Parking Area: 300 Cars

Location: 143-A, Industrial Area, Purv Marg City: Chandigarh Status: Under Construction Operational From(Planned): December, 2007 Total Land Area: 87,120 sq.ft Total Built-up Area: 2,95,000 sq.ft No. of Floors: G+5 Gross Leasable Area (GLA): 2,50,000 sq.ft GLA: GFA Ratio: 60% Leased/ Sold Space Ratio: 100% (Leased) Leasing Agents/ Companies: Zodiac, Nike Sports Culture, Taghuer, Catwalk, Canary Blue, Rockport, Dockers, Stephen Bros, Caiman, Forest Essentials, Lacoste, Reynolds, Genesis, Archies, Pepe, Vibe, Diwan Saheb, Etam, Nzyme, Woodlands, Metro, Klounge, Lilliput, Time Factory, Samsonite, Lee Cooper, Levis. Payal Jain, Carlton of London, AND (Anita Dongre), Kimaya, Kirby, Tony & Guy, Mainland China. Fame CAM Charges: Actual +20% Rental Model: Fixed Minimum Rent Atrium Area: 8,000 sq.ft Shopping Area: 1,74,288 sq.ft. Food Court Area: 7,900 sq.ft Parking Area: 1,15,000 sq.ft.(2 basements + surface) Space for No of 4-wheelers: 500 No of Escalators: 2 No. of Lifts: 4 + 2 Catchment Area: Chandigarh & adjoining areas Other shopping centres/malls in 6 km radius: Uppal Centra

Location: Paschim Vihar City: New Delhi Status: Under Construction Operational From(Planned): September 2008 Total Land Area: 65,340 sq.ft Total Built-up Area: 1,50,000 sq.ft No. of Floors: G+3 Gross Leasable Area (GLA): 1,50,000 sq.ft GLA: GFA Ratio: 55% Leased/ Sold Space Ratio: 60 - 40 Leasing Agents/ Companies: Welspun Retail Ltd., Lilliput, Zodiac, Timex, Five Elements, Me 'N' Moms CAM Charges: Actual +20% Rental Model: Fixed Minimum Rent Atrium Area: 10,000 sq.ft Shopping Area: 1,35,358 sq.ft. Food Court Area: 12,000 sq.ft Parking Area: 2 basements + surface Space for No of 4-wheelers: 600 No of Escalators: 2 No. of Lifts: 4 + 1 Considerations on choice of location: High density of population Catchment Area: Paschim Vihar, Punjabi Bagh Other shopping centres/malls in 6 km radius: West Gate, TDI Mall Mall Management: Out sourced Competitive Advantage: No mall in a 5 km radius

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SHIPRA HOTELS LIMITED

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MALL PROFILE SILVER ARC

SHIPRA MALL

SHIPRA MALL

SILVER ARC

Location: Plot 9, Vaibhav Khand City: Indirapuram Status: Operational Date of Launch/ Planned launch schedule: April,2005 Total Built-up Area: 4,90,415 sq.ft No. of Floors: 4 Gross Leasable Area (GLA): 3,32,463 sq.ft Rental Model: Lease model only Atrium Area: 19,345 sq.ft Shopping Area: 3,32,463 sq.ft Food Court Area: 16,000 sq.ft Leisure & Entertainment Area: 52,000 sq.ft Parking Space for No of 4-wheelers: 1,000 sq.ft Parking Space for No of 2-wheelers: 500 sq.ft No of Escalators: 9 No. of Lifts: 3+3 Kids Play: 19,190 sq.ft Catchment Area: Ghaziabad, Noida & parts of Delhi

Location: Plot 9, Vaibhav Khand City: Indirapuram Status: Announced Operational From (Planned): Two and half years Total Mall Area: 5,00,000 sq.ft No. of Floors: 4 to 5 Gross Leasable Area (GLA): 4,00,000 sq.ft CAM Charges: INR 27 + Rental Model: Lease model only Atrium Area: 25,500 sq.ft Shopping Area: 3,50,000 sq.ft Food Court Area: 38,000 sq.ft Leisure & Entertainment Area: NA Parking Space for No of 4-wheelers: 1,400 Parking Space for No of 2-wheelers: 300 No of Escalators: 16 No. of Lifts: 2+3 Kids Play: 19,000 sq.ft Catchment Area: Ghaziabad, Noida & parts of Delhi

Location: Ferozepore Road City: Ludhiana Status: Under Construction Operational from (Planned): December, 2008 Total Investment in the Mall: Rs.100 Crore Total Land Area: 54,000 sq.ft Total Mall Area: 2,30,000 sq.ft No. of Floors: 6 Gross Leasable Area (GLA): 2,00,000 sq.ft Leased/ Sold Space Ratio: 100% Leased Leasing Agents/ Companies: Directly CAM Charges: As Actual Rental Model: Fixed Minimum Rent Atrium Area: 10,000 sq.ft Shopping Area: 80,000 sq.ft Food Court Area: 12,000 sq.ft Leisure & Entertainment Area: 8,000 sq.ft Services Area: 15,000 sq.ft Space for No of 4-wheelers: 500 Cars+ No of Escalators: 2 No. of Lifts: 5 Considerations on choice of location: Most central next to Park Plaza Hotel Catchment Area: 80% of Ludhiana's Affluent Population within 3 Km. Radius Other shopping centres/malls in 6 km radius: 2 Average Footfall on Week Days: 10,000 Average Footfall on Weekends:

TENANT MIX

Anchor-1: Shoppers' Stop Anchor-2: Food Bazaar Anchor-3: Electronic, Furniture Bazaar Anchor-4: Pantaloons Fresh Fashion Anchor-5: Reliance Digital Anchor-6: Globus Stores Anchor-7: Nik Nish Retail

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MALL PROFILE

STADIA INFRASTRUCTURE PROJECTS PVT LTD

MAJESTIC STADIA

STADIA CENTRAL

STADIA SUPERCENTER

Location: Opposite Stadium Playground, Highcourt Road City: Jodhpur Status: Under - Construction Operational From(Planned): 2009 Total Investment in the Mall: Rs.80 Crore Total Land Area: 65,000 Sq.ft. Total Mall Area: 2,50,000 Sq.ft. No. of Floors: Ground + 6 Gross Leasable Area (GLA): 2,00,000 Sq.ft. Leasing Agents/ Companies: Jones Lang LaSalle Meghraj, Rite Sites, Knight Frank, Kumar Properties, Balaji Properties CAM Charges: Rs.12-15 per sq.ft/month Rental Model: Rs.40-100 per sq.ft/month Atrium Area: 8,000 sq.ft. Shopping Area: 1,30,000 sq.ft. Food Court Area: 10,000 sq.ft. Leisure & Entertainment Area: 60,000 sq.ft. Space for No of 4-wheelers: 300 Space for No of 2-wheelers: 300 No. of Lifts: 4 Other shopping centres/malls in 6 km radius: Ansal Royal Plaza (200 mts),Nai Sarak (shopping hub of Jodhpur - 400 mts) Avg Footfall on Week Days: 10,000 Avg Footfall on Weekends: 20,000

Location: On road to Quila Mubarak City: Patiala Status: Planned Operational From(Planned): 2009 Total Investment in the Mall: Rs.100 crore Total Land Area: 1,35,000 Sq.ft. Total Mall Area: 3,20,000 Sq.ft. No. of Floors: Ground + 4 Gross Leasable Area (GLA): 2,47,000 Sq.ft. CAM Charges: Rs.12-15 per sq.ft/month Rental Model: Rs.40-100 per sq.ft/month Atrium Area: 12,000 sq.ft. Shopping Area: 1,80,000 sq.ft. Food Court Area: 15,000 sq.ft. Leisure & Entertainment Area: 40,000 sq.ft. Space for No of 4-wheelers: 300 Space for No of 2-wheelers: 500 No. of Lifts: 4 Kids Play/Creche Area: Yes Considerations on choice of location: CBD(Central Business District) Catchment Area: Patiala,Balesar, Bhopalgarh, Bilara Other shopping centres/malls in 6 km radius: Omaxe Wedding Mall (1.5 Km),Main Market (3 Km) Average Footfall on Week Days:10,000 Average Footfall on Weekends: 20,000 Mall Management: outsourced or in house

Location: Next to RIMT, NH-1 City: Mandi Gobindgarh Status: Planned Operational From (Planned): 2010 Total Investment in the Mall: Rs.110 Crore Total Land Area: 2,40,000 sq.ft Total Mall Area: 4,20,000 sq.ft No. of Floors: Ground + 2 CAM Charges: Rs.5-7 per sq.ft/month Rental Model: Rs. 35-50 per sq.ft/month Atrium Area: Open Courtyards Shopping Area: 2,50,000 sq.ft Food Court Area: 30,000 sq.ft Leisure & Entertainment Area: 1,20,000 sq.ft Hotel / Motel Area: 20,000 sq.ft Space for No of 4-wheelers: 500 Space for No of 2-wheelers: 800 No. of Lifts: 6 Kids Play/Creche Area: Yes Other shopping centres/malls in 6 km radius: Main Market - Mandi Gobindgarh (2 Km) Average Footfall on Week Days: 8,000 - 10,000 sq.ft Average Footfall on Weekends: 10,000 - 15000 sq.ft Any Other Details: 600 Ft. frontage on NH-1

TENANT MIX

Anchor-1: Globus Category/Format: Department Store Status: Booked Area occupied: 15,000 sq.ft Anchor-2: PVR Category/Format: Multiplex Status: Booked No of Screens/Total Seating Capacity: 4 Screens/1,050 seats

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MALL PROFILE SUNCITY PROJECTS LTD

STADIA SUPERCENTER

STADIA SUPERCENTER

CROSS RIVER MALL

Location: Adjacent to Honda Showroom, NH- 64 City: Patiala Status: Planned Operational From(Planned): Phase I by end 2009 Total Investment in the Mall: Rs. 300 Crore Total Land Area: 6,55,000 sq.ft. Total Mall Area: 12,00,000 sq.ft. No. of Floors: Ground + 2 Gross Leasable Area (GLA): 11,00,000 sq.ft. CAM Charges: Rs.5-7 per sq.ft/month Rental Model: Rs. 35-50 per sq.ft/month Atrium Area: Open Courtyards Shopping Area: 6,00,000 Sq.ft. Food Court Area: 50,000 Sq.ft. Commercial / Business Area: 2,00,000 Sq.ft. Leisure & Entertainment Area: 1,50,000 Sq.ft. Hotel / Motel Area: 1,00,000 Sq.ft. Space for No of 4-wheelers: 800 Space for No of 2-wheelers: 1200 No. of Lifts: 14 Kids Play/Creche Area: Yes Considerations on choice of location: Highway Facing Catchment Area: Rajpura, Patiala, Sirandh, Sangroor, Bilara, Balesar, Bhopalgarh Average Footfall on Week Days: 15,000 Average Footfall on Weekends: 15,000 - 25,000 Locational Advantage: Three side road with 1200 Ft. Frontage on NH-64/ at a distance of 2 km from Punjabi

Location: Next to Havelli, NH - 1 City: Karnal Status: Planned Operational From (Planned): 2009 Total Investment in the Mall: Rs.60 Crore Total Land Area: 1,75,000 sq.ft Total Mall Area: 2,20,000 sq.ft No. of Floors: Ground + 5 Gross Leasable Area (GLA): 2,00,000 sq.ft CAM Charges: Rs.10-12 per sq.ft/month Rental Model: Rs. 45-80 per sq.ft/month Atrium Area: Open Courtyards Shopping Area: 1,00,000 sq.ft Food Court Area: 15,000 sq.ft Leisure & Entertainment Area: 20,000 sq.ft Hotel / Motel Area: 65,000 sq.ft Space for No of 4-wheelers: 300 Space for No of 2-wheelers: 300 No of Escalators: Lower Ground to First No. of Lifts: 4 Kids Play/Creche Area: Yes Considerations on choice of location: Highway Facing Catchment Area: Panipat, Raipur, Kurukshetra, Yamuna Nagar, Ambala, Pipli Other shopping centres/malls in 6 km radius: Havelli (Adjoining),Savoy greens (2 Km) Avg Footfall on Week Days: 10,000 15,000 Avg Footfall on Weekends: 20,000 Locational Advantage: 40Ft. frontage on NH-1

Location: 9B & 9C, Central Business, District, Shahadra City: Delhi Status: Operational Operational From (Planned): June, 2006 Total Land Area: 1,33,257.210 sq.ft Total Mall Area: 4,50,000 sq.ft No. of Floors: GF+FF+SF+2 Level Basement Parking Gross Leasable Area (GLA): 2,37,000 sq.ft Shopping Area: 2,37,000 sq.ft Food Court Area: 15,832 sq.ft Leisure & Entertainment Area: 8,360 sq.ft Parking Area: 2,00,000 sq.ft No of Escalators: 8 No. of Lifts: 4 Kids Play/Creche Area: Gaming Zone (Viking), Scary House Considerations on choice of location: East Delhi popularly known as Trans- Yamuna in the Delhi NCR is one of the fastest emerging destinations for retail ventures across categories. The catchment area boasts of several upper and upper middle class residential complexes making it a highly desirable option for retailers. Average Footfall on Week Days: 10,000 Average Footfall on Weekends: 20,000

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TENANT MIX

Anchor-1: Pantaloon Category/Format: Department Store Status: Booked Area occupied: 17,500 sq.ft Anchor-2: Fun Cinemas Category/Format: Multiplex Status: Booked No of Screens: 4 Screens

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MALL PROFILE

SUNCITY PROJECTS LTD

VASANT KUNJ

TRITON

JEWEL OF INDIA

Location: Plot No-A, Community Centre, Sector-B, Pkt-5, Vasant Kunj City: Delhi Status: Under-Construction Operational From (Planned): October, 2007 Total Land Area: 2,13,125.426 sq.ft Total Mall Area: 4,70,000 sq.ft No. of Floors: LGF+ GF+ FF+ SF+ TF+1 Level Basement Parking Gross Leasable Area (GLA): 2,70,000 sq.ft Shopping Area: 2,70,000 sq.ft Food Court Area: 18,000 sq.ft Leisure & Entertainment Area: 10,000 sq.ft Parking Area: 1,00,000 sq.ft No of Escalators: 8 No. of Lifts: 4 Considerations on choice of location: With its multitude of extremely popular high streets South Delhi is second to no other shopping destination in India.

Location: Kalwar Road, Near Maharav Shekha Circle, Near Jotwara Railway, Overbridge City: Jaipur Status: Under-Construction Operational From (Planned): December, 2007 Total Land Area: 1,96,409.073 sq.ft Total Mall Area: 4,75,000 sq.ft No. of Floors: GF+FF+SF+TF+1 Level Basement Parking Gross Leasable Area (GLA): 4,06,000 sq.ft Shopping Area: 3,50,000 sq.ft Food Court Area: 25,000 sq.ft Leisure & Entertainment Area: 15,000 sq.ft Parking Area: 1,50,000 sq.ft No of Escalators: 10 No. of Lifts: 6 Kids Play/Creche Area: Gaming Zone(Viking) Considerations on choice of location: In the heart of the shopping district of Jaipur

Location: On JLN marg, Near Appollo Hospital City: Jaipur Status: Under-Construction Total Land Area: 7,98,111.665 sq.ft Total Mall Area: 25,00,000 sq.ft No. of Floors: 9 floors & 2 leavels basement Leisure & Entertainment Area: 20,000 sq.ft Considerations on choice of location: Located on one of the most desirable addresses in Jaipur

TENANT MIX

Anchor-1: Globus Category/Format: Department Store Status: Booked Area occupied: 9,000 sq.ft Anchor-2: Max Store Category/Format: Department Store Status: Booked Area occupied: 18,000 sq.ft Anchor-3: Pantaloon Category/Format: Department Store Status: Booked Area occupied: 30,000 sq.ft Anchor-4: Liberty Footmart Status: Booked Area occupied: 8,000 sq.ft

TENANT MIX

Anchor-1: Globus Category/Format: Department Store Status: Booked Area occupied: 11,000 sq.ft Anchor-2: Shoppers Stop Category/Format: Department Store Status: Booked Area occupied: 18,000 sq.ft Anchor-3: Liberty Footmart Status: Booked Area occupied: 5,500 sq.ft Anchor-4: Fun Cinema Category/Format: Multiplex Status: Booked 214

TENANT MIX

Anchor-1: Pantaloon Category/Format: Department Store Status: Booked Area occupied: 80,000 sq.ft Anchor-2: Shoppers Stop Category/Format: Department Store Status: Booked Area occupied: 60,000 sq.ft Anchor-3: Hypermarket Category/Format: Hypermarket Status: Booked Area occupied: 80,000 sq.ft Anchor-4: Lifestyle Category/Format: Department Store Status: Booked Area occupied: 60,000 sq.ft Anchor-5: Westside Category/Format: Department Store Status: Booked Area occupied: 25,000 sq.ft Anchor-6: Multiplex Category/Format: Multiplex Area occupied: 30,000 sq.ft

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MALL PROFILE TDI-TANEJA DEVELOPERS & INFRASTRUCTURE LTD

TDI MALL

TDI FUN REPUBLIC

PARAGON

Location: Plot No. 11, Shivaji Place, near Rajouri Garden Market, New Delhi City: Delhi Status: Operational Operational from (Planned): January, 2006 Total Land Area: 54,000 sq.ft Total Mall Area: 1,20,000 sq ft No. of Floors: G+3 Gross Leasable Area (GLA): 1,20,000 sq ft GLA: GFA Ratio: No Zoning Leased/ Sold space ratio: 100% sold & leased out Tenant Mix (Zoning) details: No Zoning Atrium area: 10,000 sq.ft Shopping Area: 1,20,000 sq.ft Food Court Area: 10,000 sq.ft Leisure & Entertainment Area: 5,000 sq ft Services Area: NR Parking Area: 2 Basements No of Escalators: 6 No. of Lifts: 5 Average Footfalls on Week days: 6,000-8,000 Average Footfall on Weekends: 15,000-20,000 Mall Management: Outsourced-Knight Frank

Location: Ex-Natraj Cinema, Moti Nagar, Main Nazafgarh Road, New delhi City: New Delhi Status: Operational Operational From (Planned): December, 2005 Total Mall Area: 75,000 sq.ft No. of Floors: G+2 Gross Leasable Area (GLA): 75,000 sq.ft GLA: GFA Ratio: No Zoning Leased/ Sold space ratio: 100% sold, 80% leased out Tenant Mix: No Zoning Atrium area: 2,000 sq.ft Shopping Area: 75,000 sq.ft Food Court Area: 2,000 sq.ft Leisure & Entertainment Area: 22,000 sq.ft Parking Area: 2 Basements No of Escalators: 1 Levels connected with Escalators: GF to FF No. of Lifts: 3 Competitive Advantage: On the main junction of Moti Nagar and Punjabi Bagh crossing with three screen multiplex; Catchment with Punjabi Bagh, Moti Nagar, Patel Nagar, Kirti Nagar, etc Average Footfalls on Week days: 2,000-3,000 Average Footfall on Weekends: 3,000-5,000 Mall Management: Outsourced

Location: Plot No. 2, Shivaji District Centre, Rajouri Garden, New Delhi City: Delhi Status: Operational Total Land Area: 46,800 sq.ft Total Mall Area: 90,000 sq.ft No. of Floors: G+2 Gross Leasable Area (GLA): 90,000 sq.ft GLA: GFA Ratio: No Zoning Leased/ Sold space ratio: 100% sold & leased out Tenant Mix: No Zoning Atrium area: 5,000 sq.ft Shopping Area: 90,000 sq.ft Leisure & Entertainment Area: 28,033,75 sq.ft Parking Area: 2 Basements No of Escalators: 3 Levels connected with Escalators: All No. of Lifts: 2 Competitive Advantage: Located in Shivaji Place District Centre will comprise of shopping centres, ofice buildings, five star hotel, a habitat centre, multiplex, ample parking space. The vicinity is going to be a hub center for West Delhi's shopping, fun, food and entertainment. Mall Management: Outsourced

TENANT MIX

Anchor-1: Westside Category/Format: Department Store Area occupied: 120,000 sq.ft Other Brands/ Retailers: Adidas, Levis, Dockers, Reebok, Pizza Hut, Ruby Tuesday, Study by Janak, Subway, Blackberry, Koutons, Ruff Kids, Archies, Candy Treats, Planet - M

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MALL PROFILE

TDI-TANEJA DEVELOPERS & INFRASTRUCTURE LTD

TDI MALL, SONEPAT

TDI MALL, AGRA

TDI MALL, JASOLA

Location: On Main G.T Karnal Road2.5 km from Delhi Border City: Sonepat Status: Under Construction Operational From (Planned): December, 2008 Total Land Area: 2,74,428 sq.ft Total Mall Area: 5,00,000 sq ft No. of Floors: G+2 GLA: GFA Ratio: No Zoning Rental Model: Fixed Min Rent Tenant Mix: No Zoning Atrium Area: 41,000 sq.ft Shopping Area: 5,50,000 sq.ft Food Court Area: 12,000 sq.ft Leisure & Entertainment Area: 30,000 sq.ft Parking Area: 2 Basements No of Escalators: 8 Levels connected with Escalators: All No. of Lifts: 12 Competitive Advantage: Right on GT Karnal Road with 650 ft front with beautiful elevation and ample parking. Will attract local and highway traffic and will an excellent entertainment destination. Mall Management: Outsourced

Location: Plot No. 3-D, FatehbadTajmahal Raod, Agra City: Agra Status: Operational Operational From (Planned): December, 2006 Total Land Area: 97,380 sq.ft Total Mall Area: 2,00,000 sq.ft No. of Floors: G+3 Gross Leasable Area (GLA): 2,00,000 sq.ft GLA: GFA Ratio: No Zoning Leased/ Sold space ratio: 90:50 ratio Tenant Mix: No Zoning Atrium Area: 15,000 sq.ft Shopping Area: 2,00,000 sq.ft Food Court Area: 23,000 sq.ft Leisure & Entertainment Area: 25,000 sq.ft Parking Area: 1 Basement No of Escalators: 6 Competitive Advantage: On the junction of Fatehbad road and Taj Mahal Road where 5 star hotels like Trident, JP Mughal Sheraton ar located. Will attract tourists visiting Taj Mahal. Every shop facing the huge atrium with prominent visibility and excellent frontage Average Footfalls on Week days: Estimated 2000-4000 Average Footfall on Weekends: Estimated 5000-7000 Mall Management: Outsourced

Location: Flat No 7, Jasola District Center, Next to Apollo Hospital, Near NFC City: Delhi Status: Completed Total Land Area: 1,40,000 sq.ft No. of Floors: G+5 Gross Leasable Area (GLA): 1,40,000 sq.ft GLA: GFA Ratio: No Zoning Leased/Sold space ratio: 100% sold & leased out Rental Model: Fixed Minimum Rent Tenant Mix: No Zoning Atrium Area: 10,000 sq.ft Shopping Area: 60,000 sq.ft Food Court Area: 7,000 sq.ft Parking Area: 2 Basements No of Escalators: 4 Levels connected with Escalators: 2 No. of Lifts: 4 Mall Management: Outsourced

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(NORTH)

MALL PROFILE TDI-TANEJA DEVELOPERS & INFRASTRUCTURE LTD

TDI MALL, CHANDIGARH

SOUTHERN PARK, SAKET

PALM COURT, GURGAON

Location: Sec 17, formerly Jagat Cinema Complex City: Chandigarh Status: Under Construction Operational from (Planned): 1st quarter of 2008 Total Mall Area: 8,50,000 sq.ft No. of Floors: LGF+GF+2 Gross Leasable Area (GLA): 8,50,000 sq.ft Leased/Sold space ratio: 100% sold & leased out Atrium Area: 5,000 sq.ft Food Court Area: 2,500 sq.ft Leisure & Entertainment Area: On second floor Parking Area: 2 Basements No of Escalators: 2 No. of Lifts: 3 Kids Play/Creche Area: On first floor Competitive Advantage: Strategically located on prime place of Chandigarh Sec 17; first mall cum multiplex in the heart of Chandigarh

Location: D-2, Saket District Centre, Saket City: Delhi Status: Ready to move in Operational from (Planned): November, 2006 Total Land Area: 22,500 sq.ft Total Mall Area: 2,00,000 sq.ft Gross Leasable Area (GLA): 2,00,000 sq.ft Leased/Sold space ratio: 100% sold out Tenant Mix: GF& FF for retail and rest for office purposes Atrium Area: 2,000 sq.ft Shopping Area: 66,000 sq.ft Food Court Area: No food court Leisure & Entertainment Area: No Parking Area: 2 Basements No of Escalators: No Levels connected with Escalators: No No. of Lifts: 4 Competitive Advantage: Located in the heart of Delhi-Saket; adjoining PVR and facing select mall; three side open bldg; amalgam of retail cum office Market Area: Sainik farm, Geetanjali Enclave, Shivalik, Saket, Malviya Nagar, Hauz Khas Other Shopping centres/ malls in 6 km radius: PVR, MGF, DLF, DT Cinemas etc Average Footfalls on Week days: 10,000-15,000 Average Footfall on Weekends: 25,000-30,000 Mall Management: Outsourced

Location: 300 mtrs from N.H. 8 on M.G.Road City: Gurgaon Status: Operational Total Mall Area: 1,95,999 sq.ft Competitive Advantage: 8 floors for corporates; large open space;ample parking;state-of-the-art telcommunication links

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MALL PROFILE

TDI-TANEJA DEVELOPERS & INFRASTRUCTURE LTD

THREE'S INFRASTRUCTURES PVT. LTD

RODEO DRIVE

TDI MALL, MORADABAD

CENTRIUM JYOTI MALL

Location: On Main G.T Karnal Road City: Kundli, Sonepat Status: Under Construction Operational from (Planned): December, 2008 Total Mall Area: 5,50,000 sq ft Gross Leasable Area (GLA): 5,50,000 sq ft Leased/ Sold space ratio: Leased+sold Tenant Mix: Zoning Parking Area: 2 basements No. of Lifts: 8 Mall Management: Outsourced

Location: Ramganga Vihar City: Moradabad Status: Under Construction Total Mall Area: 1,50,000 sq.ft No. of Floors: G+UG+F Gross Leasable Area (GLA): 1,50,000 sq.ft Leased/ Sold space ratio: Leased Tenant Mix (Zoning) details: Zoning Parking Area: 2 Basements

Location: Jyoti Chowk, Jalandhar City: Jalandhar Status: Under Construction Planned Launch: November, 2007 Total Land Area: 22,770 sq.ft Total Mall Area: 86,000 sq.ft No. of Floors: 6 Gross Leasable Area: 44,871 sq.ft CAM Charges: Rs.10-15/sq.ft/month or as per actuals Rental Model: Fixed Minimum Rent of Rs.140/sq. ft/month Tenant Mix: Disney Jeans, Rifles, Spykar, Vasari, Pizza Corner, Adidas, Lilliput, W, Samsonite, D'damas Atrium Area: 1,400.9 sq.ft Shopping Area: 29,914 sq.ft Food Court Area: 6,625 sq.ft Leisure/Entertainment Area: 6,625 sq.ft Services Area: 2,911 sq.ft Parking Area: 22,000 sq.ft Space for No of 4-wheelers: 150-180 Space for No of 2-wheelers: 100 No of Escalators: 2 No. of Lifts: 2+1 Kids Play/ Creche Area: 1,500 sq.ft Competitive Advantage: Location and Right brand mix Considerations on choice of Location: Main shopping hub, dearth of parking space Market Area: Rainak Bazar, Sheikhan Bazar, Phulanwala Chowk, G.T.Road Other Shopping centres/malls in 6 km radius: Lal Rattan, DLF, Ansals, MGF, MBD Neopolis Avg Footfalls on Week days: 7001,000 Avg Footfall on Weekends: 1,000-

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SOUTH INDIA

STATES OF SOUTH INDIA Andhra Pradesh, Karnataka, Kerala, Tamilnadu, Pondicherry

SOUTH ZONE Population-2006 (million)

Consumption Expenditure 2006-07 (INR million)

Av per capita Consumption Exp (INR/year)

Rural

Urban

Total

Rural

Urban

Total

Rural

Urban

SOUTH ZONE

153

85

238

3,313,561

2,558,019

5,871,579

21,621

30,238

ALL INDIA

796

325

1,121

13,753,864

9,646,136

23,400,000

17,287

29,652

19.2%

26.2%

21.2%

24.1%

26.5%

25.1%

South as % of All-India

STATE

LARGEST CITY

PER CAPITA NDP AS SHARE OF INDIAN MEAN INDEX

AVG GROWTH RATE OF PER CAPITA NDP %

SHARE OF INDUSTRY SECTOR IN NDP

SHARE OF SERVICES IN NDP

Andhra Pradesh

Hyderabad

96.1

4.58

14.9

56.7

Karnataka

Bangalore

107.1

4.93

13.6

62.7

Kerala

Thiruvananthapuram

102.6

3.81

11.1

72.5

Tamil Nadu

Chennai

113.8

4.48

18.6

68.7

T

he five Southern States of Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Pondicherry together housed 21.2 percent of country's population in 2006 and account for 25.1 percent of India's private final consumption expenditure, which is estimated at Rs.23,400 billion in 2006-07. The average per capita consumption expenditure for the Southern states is also higher than the country average, both for the rural as well as urban population.

PONDICHERRY STATE SNAPSHOT Area

480 sq.km

Capital

Pondicherry

Districts

4

Population

11.2 lakh (2006)

Population Density

1,979/sq.km

Official Language

Tamil

Gross State Domestic Product (Rs Cr) at current prices

6,457

Sex Ratio

1001

Literacy Rate

81.49%

269

ANDHRA PRADESH

T

he state of Andhra Pradesh is bordered by Maharashtra, Chhattisgarh and Orissa in the North; the Bay of Bengal in the East; Tamil Nadu to the South; and Karnataka to the West. Andhra Pradesh is the fifth largest state in India by area as well as population. It is the largest and most populous state of South India. The state is crossed by the two major rivers of Godavari and Krishna.

AREA (SQ.KM) CAPITAL DISTRICTS POPULATION POPULATION DENSITY OFFICIAL LANGUAGES GROSS STATE DOMESTIC PRODUCT (RS CR) AT CURRENT PRICES

2,75,068 (5TH LARGEST) HYDERABAD 23 81,615,649 (2006) 275/SQ.KM TELUGU, URDU 2,02,575

(Source: Ministry of Statistics and Programme Implementation, Government of India)

PER CAPITA INCOME (IN RS) AT CONSTANT PRICE (2003-04)

20,757

SEX RATIO LITERACY RATE

972 60.50%

LIFE EXPECTANCY AT BIRTH (2006-11)

MALE FEMALE

(Source: SRS, Registrar General of India)

LENGTH OF COASTLINE (KM) NATIONAL HIGHWAY LENGTH (KM) DOMESTIC AIRPORTS VIJAYAWADA, TIRUPATI INTERNATIONAL AIRPORT MAJOR PORT KEY INDUSTRIES

63.92 66.16

974 4,104 HYDERABAD, VISAKHAPATNAM, HYDERABAD VISAKHAPATNAM AGRO-BASED, MINERAL-BASED, LEATHER, TEXTILES, ENGINEERING, IT, PHARMACEUTICALS, R&D

DOING BUSINESS IN ANDHRA PRADESH LIST OF APPROVALS & CLEARANCES REQUIRED

• Nasscom ranked Hyderabad the No. 1 ITES Destination in India • Accounts for 23% of Software Professionals in India • Largest Producer of Rice in India • Largest Producer of Minerals in Value • Largest exporter of bulk drugs • Second largest state in terms of number of industrial estates in India • Second largest storehouse of minerals in India • Only state with abundant energy

ESTIMATED TIME TAKEN (in days)

Building Approval

Municipality / UDA / TCP

Power Feasibility

State Electricity Board

7

Power Connection

State Electricity Board

23

Panchayat Clearance

Gram Panchayat

7

Factories Clearance

Factories Department

7

Commercial Taxes

Sales Tax Department

7

Water and Sewage Clearance

Pollution Control Board

Water Connection

HMWS & SB

23

Pollution Clearance

Pollution Control Board

60

Financial Clearance

State Finance Development Board

21

Land Acquisition

Municipality / UDA / TCP

15

Land allotment in Industrial area

Municipality / UDA / TCP

7

Alienation of Government land

Municipality / UDA / TCP

15

Conversion of Land for Industrial Purpose Municipality / UDA / TCP

45

Source: IBEF

270

DEPARTMENTS TO BE CONSULTED

7

7

KARNATAKA

K

arnataka is India's eighth-largest state, both in terms of area and population. Situated on the West Coast of India, Karnataka opens out to the Arabian Sea. It is surrounded by Maharashtra in the North; Andhra Pradesh in the East; Tamil Nadu and Kerala in the South; and the Arabian Sea and Goa to the West. The state has rich natural resources; Cauvery is the major river flowing through it. Karnataka is best known as India's IT heartland and the "Silicon Valley" of India.

AREA (SQ.KM) AREA (SQ.KM) CAPITAL DISTRICTS POPULATION POPULATION DENSITY OFFICIAL LANGUAGE GROSS STATE DOMESTIC PRODUCT (RS CR) AT CURRENT PRICES

2,75,068 (5TH LARGEST) 1,92,000 (8TH LARGEST) BANGALORE 27 56,599,298 (2006) 291/SQ.KM KANNADA 1,48,521

(Source: Ministry of Statistics and Programme Implementation, Government of India)

PER CAPITA INCOME (IN RS) AT CONSTANT PRICE (2003-04)

21,696

SEX RATIO LITERACY RATE

964 66.60%

LIFE EXPECTANCY AT BIRTH (2006-11)

MALE FEMALE

(Source: SRS, Registrar General of India)

NATIONAL HIGHWAY LENGTH (KM) DOMESTIC AIRPORTS BELGAUM INTERNATIONAL AIRPORT INTERNATIONAL PORT KEY INDUSTRIES

63.1 67.43

3,728 BANGALORE, HUBLI, MANGALORE, BANGALORE MANGALORE INFORMATION TECHNOLOGY, ELECTRONICS, BIOTECHNOLOGY, APPARELS, AUTOMOTIVES, ENGINEERING, AERONAUTICS, TOURISM, MINERALBASED, AGRO-BASED, LEATHER

DOING BUSINESS IN ANDHRA PRADESH

• Highest share in it exports from India • Highest number of biotech companies in India • Largest producer of gold in India (90% of national production)

LIST OF APPROVALS & CLEARANCES REQUIRED

DEPARTMENTS TO BE CONSULTED

Incorporation of the company

Registrar of Companies

Registration, IEM, Industrial Licences

District Industry Centre for Small Scale Industries and Medium Industries

Allotment of Land

State Department of Industries/ State Industrial Development Corporation/ Infrastructure Corporation

Permission for Land Use

State Department of Industries, Department of Town and Country Planning

Site Environmental Approval

State Pollution Control Board and Ministry of Environment and Forests

No Objection Certificate and consent under Water and Pollution Control Acts

State Pollution Control Board

Approval of Construction Activity and Building Plan

Town and Country Planning Authority

Sanction of Power

State Electricity Board

Registration under Sales Tax Act and Central and State Exercise Act

Sales Tax Department, Central and State Exercise Departments

• Sole producer of felspite in India • Major producer of limestone and iron ore (300 lakh tonnes p.a.) in India • Accounts for 70% of total coffee production in India

Source: IBEF

271

ESTIMATED TIME TAKEN (in days)

SINGLE WINDOW CLEARANCE The Karnataka Udyog Mitra (state single window clearance) clears investment proposals in 40 days on an average. The single window obtains all approvals necessary for the investment proposal within the specified time frame.

KERALA

T

he State of Kerala is on the Malabar Coast of southwestern India. To its East and northeast, Kerala borders Tamil Nadu and Karnataka respectively; to its West and South lie the Arabian Sea and the Indian Ocean. Periyar is a major river flowing through the state, besides its famed backwater channels. Kerala is one of the most popular tourist destinations in the world. Agriculture continues to be the dominant source of livelihood.

AREA (SQ.KM) CAPITAL DISTRICTS POPULATION POPULATION DENSITY OFFICIAL LANGUAGE GROSS STATE DOMESTIC PRODUCT (RS CR) AT CURRENT PRICES

38,863 (21ST LARGEST) THIRUVANANTHAPURAM 14 34,099,910 (2006) 819/SQ.KM MALAYALAM 1,00,531

(Source: Ministry of Statistics and Programme Implementation, Government of India)

PER CAPITA INCOME (IN RS) AT CONSTANT PRICE (2003-04)

24,053

SEX RATIO LITERACY RATE

1058 91%

LIFE EXPECTANCY AT BIRTH (2006-11)

MALE 72 FEMALE 75

(Source: SRS, Registrar General of India)

NATIONAL HIGHWAY LENGTH (KM) DOMESTIC AIRPORTS KOZHIKODE INTERNATIONAL AIRPORTS KOZHIKODE MAJOR PORT KEY INDUSTRIES

3,728 THIRUVANANTHAPURAM, KOCHI, THIRUVANANTHAPURAM, KOCHI, KOCHI AGRO-BASED, COIR, TEXTILES, SEAFOOD, CHEMICALS, IT/ITES, TOURISM

DOING BUSINESS IN KERALA LIST OF APPROVALS & CLEARANCES REQUIRED

DEPARTMENTS TO BE CONSULTED

Incorporation of the company

Registrar of Companies

Registration, IEM, Industrial Licences

District Industry Centre for Small Scale Industries and Medium Industries

Allotment of Land

State Department of Industries/ State Industrial Development Corporation/ Infrastructure Corporation

Permission for Land Use

State Department of Industries, Department of Town and Country Planning

• Average of 42 deaths per 1000 births

Site Environmental Approval

State Pollution Control Board and Ministry of Environment and Forests

• Lowest population growth rate at 9.4% against the national average of 21.3%

No Objection Certificate and consent under Water and Pollution Control Acts

State Pollution Control Board

Approval of Construction Activity and Building Plan

Town and Country Planning Authority

Sanction of Power

State Electricity Board

Registration under Sales Tax Act and Central and State Exercise Act

Sales Tax Department, Central and State Exercise Departments

• Highest literacy rate (91%) • Highest sex ratio (1,058) • Tops human development index among Indian states • Lowest infant mortality rate at nine deaths per 1000 births, against the national

• Largest producer of coconut, pepper, coir, cocoa, rubber and areca nut in India

Source: IBEF

272

ESTIMATED TIME TAKEN (in days)

SINGLE WINDOW CLEARANCE The state’s single window facility clears investments of proposals in 45 days on an average. The single window obtains all approvals necessary for the investment proposal within the specified time frame.

TAMIL NADU

T

amil Nadu is one of the most developed states in the country. The state has succeeded in reducing poverty and raising its standard of living. Literacy level in the state is one of the highest among all Indian states. The state has grown as a manufacturing powerhouse in the country, especially in automobiles and textiles. While the textile units in the state are known globally, the state is home to manufacturing facilities of a number of international auto giants, including Ford and Hyundai (with an investment of over US$1 billion). The state capital of Chennai is often called the "Detroit of India".

AREA (SQ.KM) CAPITAL DISTRICTS POPULATION POPULATION DENSITY OFFICIAL LANGUAGE GROSS STATE DOMESTIC PRODUCT (RS CR) AT CURRENT PRICES

1,30,058 (11TH LARGEST) CHENNAI 30 66,832,168 (2006) 478/SQ.KM TAMIL 1,88,921

(Source: Ministry of Statistics and Programme Implementation, Government of India)

PER CAPITA INCOME (IN RS) AT CONSTANT PRICE (2003-04)

23,358

SEX RATIO LITERACY RATE

986 73.47%

LIFE EXPECTANCY AT BIRTH (2006-11)

MALE FEMALE

(Source: SRS, Registrar General of India)

LENGTH OF COASTLINE (KM) NATIONAL HIGHWAY LENGTH (KM) DOMESTIC AIRPORTS

CHENNAI MAJOR PORTS

68.45 71.54

1,076 (2ND LONGEST IN INDIA) 2,002 CHENNAI, TIRUCHIRAPALLI, COIMBATORE, MADURAI, TUTICORIN INTERNATIONAL AIRPORT CHENNAI, ENNORE AND TUTICORIN (24% OF TONNAGE CAPACITY SHARE IN INDIA) TEXTILES, LEATHER, INFORMATION TECHNOLOGY, AUTOMOTIVE, AUTO COMPONENTS, ENGINEERING, MINERALBASED, AGRO-BASED

KEY INDUSTRIES

DOING BUSINESS IN TAMIL NADU

• Fastest growth rate of 700% in software exports • Largest it park in India • Highest value addition in industries • Highest number of factories and export oriented units • Leading manufacturer of automotive components • Uninterrupted quality power supply to industries at low tariffs • Largest capacity for engineering and polytechnic education

LIST OF APPROVALS & CLEARANCES REQUIRED

DEPARTMENTS TO BE CONSULTED

Incorporation of the company

Registrar of Companies

Registration, IEM, Industrial Licences

District Industry Centre

Allotment of land

State Department of Industries/ State Industrial Development Corporation/ Infrastructure Corporation

Permission for land use

State Department of Industries, Department of Town and Country Planning

Site environmental approval

State pollution control board and Ministry of environment and forests

No Objection Certificate and consent under water and pollution control acts

State pollution control board

Approval of construction Activity and building plan

Town and country planning Authority

Sanction of power

State electricity board

Registration under Sales tax act and central And state exercise act

Sales tax department, Central and state exercise departments

Source: IBEF

273

ESTIMATED TIME TAKEN (in days)

SINGLE WINDOW CLEARANCE GUIDANCE (state’s single window facility) clears investments of proposals in 30 days on an average. The single window obtains all approvals necessary for the investment proposal within the aforementioned time frame.

RETAIL REAL ESTATE IN SOUTH INDIA

The total supply of shopping centre space in South India by end-2008 will be 19.02 million sq.ft, accounting for an increase of more than 12 million square feet of mall space over the 6.84 million to be available by end-2007. According to IMAGES F&R Research data, the rate of growth in shopping centre space, which was only 23.1 percent in 2006 is to increase to 37 percent growth in 2007 and is likely to be a whopping 178 percent increase in 2008 if projects materialise in time. There was a brief de-acceleration in the growth in 2006, mainly on account of the fact that a good number of mega mall projects in the South (for instance, those of Mantri Developers in Bangalore) that had been slated to become operational by 2006-07, either never took off or got stalled due to various reasons. But now since many of these stalled projects are on again and newer projects have been announced, the growth rate is expected to take off in a big way.

Till date it is the largest operational mall in the region, having 18.5 lakh square feet of built-up floor space and 13 lakh square feet of gross leasable area. Mangal Tirth Estate Ltd was the developer. Chennai had its second mall 16 years later in 2006 with the opening of Chennai City Centre at Dr RK Salai. However, the second mall in the region came up in year 2000: the MPM Mall from the Abid's Group. Both these early mover cities in the South rested for a good while before starting off in the malling activity after the initial mall. The warming up started in Bangalore in 2004 with the launch of the very successfully executed Prestige Group mall, The Forum. Besides Bangalore, Hyderabed and Chennai, mall development in the South is also picked up in cities like Kochi (one operational and five by 2010) and Mysore (one operational and four by 2010). Coimbatore will have two malls by 2009 while Vijayavada will have two operational malls a year earlier.

As per the progress in construction of mall projects in South India and also the feedback from developers, the number of operational malls will increase from 21 in 2007 to 76 in year 2010. Most of these are mega projects and as a result the growth in supply of quality retail space will be greater than the increase in number of malls. From 68.4 lakh square feet in 2007, mall space will increase to nearly 476 lakh square feet in 2010.

The average ratio of land area to mall space for Bangalore is as 1 : 2.44 while for Hyderabad it is 1 : 4.65 ; for Chennai it is slightly lower at 1 : 3.66 ; in Kochi it is 1 : 3.52 and the land to mall space ratio is again closer to that of Bangalore in Mysore (1 : 2.69). This implies that malls either have more levels in centres other than Bangalore and Mysore or there is less open space outside.

Chennai has the distinction of giving the country its first modern mall, the Spencer's Plaza way back in 1990.

The average ratio as between mall space and gross leasable are gives an indication of the size of atrium and

274

free movement space within the mall. Here again, Bangalore malls are better placed with a ration of mall space to GLA as 1 : 0.48 as compared to 1 : 0.53 in in Hyderabad, 1 : 0.63 in Chennai and 1 : 0.76 in Kochi.

first modern mall, the Spencer's Plaza way back in 1990. Till date it is the largest operational mall in the region, having 18.5 lakh square feet of built-up floor space and 13 lakh square feet of gross leasable area. Mangal Tirth Estate Ltd was the developer. Chennai had its second mall 16 years later in 2006 with the opening of Chennai City Centre at Dr RK Salai. However, the second mall in the region came up in year 2000: the MPM Mall from the Abid's Group. Both these early mover cities in the South rested for a good while before starting off in the malling activity after the initial mall. The warming up started in Bangalore in 2004 with the launch of the very successfully executed Prestige Group mall, The Forum.

With regard to projected shopping centre space in South India by 2007-end, Bangalore will account for 39 percent; followed by Chennai (33 percent), Hyderabad (15 percent) and Mysore accounting for nearly eight percent of the mall space pie, respectively. That leaves about five percent of available shopping centre space for other southern centres. Chennai has the distinction of giving the country its 275

Besides Bangalore, Hyderabed and Chennai, Mall development in the South is also picked up in cities like Kochi (1 operational and 5 by 2010) and Mysore (1 operational and 4 by 2010). Coimbatore will have two malls by 2009 while Vijayavada will have two operational malls a year earlier.

The average ratio as between mall space and gross leasable are gives an indication of the size of atrium and free movement space within the mall. Here again, Bangalore malls are better placed with a ration of mall space to GLA as 1 : 0.48 as compared to 1 : 0.53 in in Hyderabad, 1 : 0.63 in Chennai and 1 : 0.76 in Kochi.

The average ratio of land area to mall space for Bangalore is as 1 : 2.44 while for Hyderabad it is 1 : 4.65 ; for Chennai it is slightly lower at 1 : 3.66 ; in Kochi it is 1 : 3.52 and the land to mall space ratio is again closer to that of Bangalore in Mysore (1 : 2.69). This implies that malls either have more levels in centres other than Bangalore and Mysore or there is less open space outside.

With regard to projected shopping centre space in South India by 2007-end, Bangalore will account for 39 percent; followed by Chennai (33 percent), Hyderabad (15 percent) and Mysore accounting for nearly 8 percent of the mall space pie, respectively. That leaves about five percent of available shopping centre space for other southern centres.

276

277

BANGALORE

existing catchment, retail activity is now spreading to new residential and office locations. Besides the traditional high streets of Brigade Road, MG Road and Commercial Street, new locations like Lavelle Road, CMH Road and 100 Feet Road, Indiranagar, are emerging as the hottest retail locations.

Bangalore has traditionally been a leader in supermarkets which was initiated by Nilgiris and the then RPG Group's Foodworld outlets. The concept of large format, department stores like Lifestyle, Shoppers' Stop and Westside has also become popular in the city. The city is currently witnessing a shift towards large hypermarkets like Big Bazaar, Metro Cash & Carry, Jumbo Saver, etc.

With 20 malls in various stages of planning, it is estimated that the additional mall area from upcoming projects in Bangalore will be approximately 12 million sq.ft by 2010.

Encouraged by the success of the eight operational malls (The Forum, Garuda Mall, Sigma Mall, Bangalore Central, Eva Mall, The Pavilion, Gopalan and now Total), developers are putting in place plans for new mall space in the city. Cashing in on the

The sudden spurt in economic activity in 2004-05 created a shortage of space and this has pushed up retail rentals significantly. Brigade Road currently attracts the highest rental value at Rs.320/sq.ft/month. The steepest increase in rates is 278

noticed in Indiranagar (146 percent). Considering the average retail rental across years, it is currently at a high of around Rs.240/sq.ft/month. The movement of commercial office space to suburban locations like Whitefield, Koramangala and Sarjapur Road have made these areas attractive to increased retail investment. New retail developments are also coming up in Jayanagar, Bannerghatta Road and Hosur Road in South Bangalore. Overall, the retail sector in Bangalore is expected to accelerate 2007 onwards. HYDERABAD Hyderabad retail market has always been a high volume and a cash-rich market. Increased consumer demand, improved sourcing options and easy availability of real estate have created the foundation for significant growth in the organised retail sector. Banks and automobile showrooms form the bulk of demand for retail space leased out in the CBD of Begumpet. Global and national apparel and F&G brands have made a strong entry into Hyderabad.

The major retail hubs of Hyderabad are Basheerbaag, AbidsNamapalli and Ameerpet. Leading brands like Nike, Proline, Stanza, Pantaloons, Woodlands, Food World, Reliance Fresh, ITC Chaupal Fresh and Fresh@ have already opened their outlets here. Most outlets, however, are located as standalone retail 279

CHENNAI A pioneer in promoting the mall culture in India in the early '90s, with Spencer Plaza, Chennai however has not seen the emergence of many new malls apart from Chennai Citi Centre and the near complete Ampa Centre mall. But now the scene is hotting up with nine more malls planned to impact the market in the next three years. Of the nine malls coming up in various parts of the city, four are scheduled to come up on the Old Mahabalipuram Road (OMR) stretch. More than 10 million sq.ft of mall space is estimated to be added on in the next three years taking the city's total mall space to 12.5 million square feet by year 2010 as per IMAGES F&R Research estimates. The important high streets of the city include the CBDs of Anna Salai, Nungambakkam, T Nagar and Pondy Bazaar. Other prominent shopping destinations are the suburban markets of Anna Nagar, RK Salai, Besant Nagar and Egmore.

A recent retail trends in Chennai has been the development of concentrated retail hubs within developed residential pockets such as Adyar in South Chennai. Most leading brands have already opened outlets in these areas to service the ready catchment.

formats or in small commercial complexes. On account of heavy traffic and unplanned growth, there is a shortage of parking space. With the CBD and off-CBD of Begumpet and Somajiguda becoming saturated, most retail activity is presently centred around the suburban locations of Banjara Hills and Jubilee Hills. The retail triangle of Somajiguda-Raj Bhavan Road, Panjagutta and Banjara Hills Road No.1 has today become a prime shopping destination. Currently there is more than one million mall space available in the twin cities of Hyderabad and Secunderabad together and it is estimated that around 7.5 million sq.ft of mall space will be added from about 10 more malls coming up by 2010; that is, there will be a total of 16 operational malls with more than 8.5 million square feet of prime retail space.

Despite the fact that mall development in the city is still in its initial phase, retailers are changing their view and preferring organised retail space over traditional established locations. Corporate investments and the presence of foreign multinational companies have added to the drive to modernise retail network. However, concerns regarding the feasibility and capability of the market to absorb the quantum of retail space supply remain. KOCHI Cochin is the second most important city on the western coast after Mumbai. It is the largest city of Kerala and the commercial and industrial capital of the state. Cochin is also a major port and ranks among first 11 major ports in India and is also the second largest Naval base after Goa on western coast.

By year 2010, the present retail locations and high streets of Banjara Hills and other suburban retail markets will get saturated, resulting in a shift of retail focus to the city's outskirts and newer peripheral locations.

280

Kochi's retail real estate can be broadly divided into two categories – traditional/established markets and emerging retail areas. The majority of the retail developments in the city are located in the traditional high street areas. MG Road is the main high street retail destination of the city followed by Banarji Road and Marine Drive Road. The emerging retail areas are concentrated along the NH 47 by-pass road and along the NH 47 at Edappally.

Grand Mall from IDEB Projects is the first mall to have opened up in the city early this year. It offers 5.6 lakh square feet of retail space. In the next two years, by 2009 end, the city will have four operational malls with a total mall space of over 15.5 lakh square feet. The emergent retail stretches in the city include Gokulam Main Road, VV Mohalla, Kalidasa Road, etc. COIMBATORE Coimbatore's real estate market had, in the past, been overly dependent on the textile industry. However, in the last decade, Coimbatore has seen a shift from the secondary sector (manufacturing) to trade and commerce. Many mills in the city have either shutdown or shifted to locations outside the city. Furthermore, since the last 2-3 years, there is a lot of hectic activity in the IT sector as Software companies are keenly looking at setting up of software development units in the city.

Many apparel brands and jewelry showrooms are located at MG Road, while automobile showrooms and the upcoming Gold Souk are at the bypass road. The development of Kinfra Park at Kakkanad and Cochin SEZ at Seaport Airport road has further fuelled the development in Kakkanad and surrounding localities. Kochi had its first and only operational mall, the Bay Pride from Abad Builders, in January 2006. From this small 66,000 square feet mall, the city is now gearing up to taste the warmth of a mega 10.7 lakh square feet The Forum mall from Bangalore's Prestige group. By 2010 the city will have five operational malls offering a total of 21.1 lakh square feet of quality shopping environment.

The IT and services Industry boom in Coimbatore is also palpable with the enhanced activity in real estate and retail business. This is evident due to presence of a number of real estate companies such as Land Marvel, Sahara Homes and Appaswamy Real Estates, coming to Coimbatore. Major construction activities are visible in areas like Vadavalli, Kovai Pudur, Peelamedu, Kaudampalayam and Trichy Road.

Most of Kochi's upcoming developments are concentrated in the suburbs and outgrowths. The city is growing along the major transportation corridors like NH 47 by-pass, Seaport Airport Road and other major transportation corridors, generally on the northeastern side of the city. Kaloor-Kadavanthara road, Vytilla, Kakkanad etc are upcoming residential destinations, while the bypass road, Seaport Airport Road are the retail-commercial/IT potential destinations for the future development.

Two huge malls are coming up in the city: the 6.82 lakh square feet Fun Republic from E-City Entertainment and the 12.5 lakh square feet The Grand from the PS Group. Both are lovcated on Avnish Road and both are likely to be operational in year 2009. These developments are clear indication that Coimbatore's centre of retail activity is shifting towards south-eastern part of the city, which includes Trichy Road, Avanashi Road and Arts College Road. Currently the prime retail locations in Coimbatore are Avinashi Road, Trichy Road, DB Road, Mettupalayam Road and Race Course Road.

MYSORE The CBDs of D Devaraj URS Road, Sayajji Rao Road and Sivaram Peth are Mysore's traditional market areas. D Devaraj URS Road has silk showrooms, jewellery, apparel, footwear and electronics outlets. Sayajji Rao Road has apparel, jewellery, home stores, saree stores and kirana shops. Sivaram Peth also houses jewellery, electronics, stationery and apparel outlets.

Guntur, Vijayavada, Calicut, Hubli, Madurai, Trivandrum, Mangalore, Madurai and Calicut are some of the other smaller cities in the South where mall projects have started off. 281

(south)

MALL PROFILE Aerens Gold Souk International Ltd.

Abad Builders Pvt Ltd

BAY PRIDE

NUCLEUS MALL

Location: Marine Drive City: Kochi Status: Operational Operational From: January 2006 Total Investment in the Mall: Rs.15 crore Total Land Area: 22,000 sq.ft Total Mall Space: 66,000 sq.ft Gross Leasable Area (GLA): 43,000 sq.ft No. of Floors: B + G + 1 Leased/Sold Space Ratio: 60:40 Leasing Agents/Companies: Trammell Crow Meghraj/In-house CAM Charges: Rs.7.50/sq.ft/month Atrium Area: 1,000 sq.ft Shopping Area: 36,000 sq.ft Food Court Area: 4,000 sq.ft Leisure & Entertainment Area: 1,000 sq.ft Services Area: 4,000 sq.ft Parking Area: 20,000 sq.ft Space for No. of 4-wheelers: 40 Space for No. of 2-wheelers: 40 No. of Escalators: 1 No. of Lifts: 1 Catchment Area: Heart of the city Other shopping centres/malls in 6 km radius: Many Average Footfall on Week Days: 2,000 Average Footfall on Weekends: 4,000

Location: Maradu, NH Madurai City: Kochi Status: Under Construction Operational From (Planned): May 2009 Total Investment in the Mall: Rs.45 crore Total Land Area: 50,500 sq.ft Total Mall Space: 1,55,000 sq.ft Gross Leasable Area (GLA): 1,25,000 sq.ft No. of Floors: B + G + 3 CAM Charges: Rs.10-12/sq.ft/month Rental Model: Mixed Atrium Area: 3,000 sq.ft Shopping Area: 1,05,000 sq.ft Food Court Area: 10,000 sq.ft Leisure & Entertainment Area: 5,000 sq.ft Services Area: 6,000 sq.ft Parking Area: 60,000 sq.ft Space for No. of 4-wheelers: 200 Space for No. of 2-wheelers: 100 No. of Escalators: 6 No. of Lifts: 5 Catchment Area: Triparty, Marad and Vyttila Other shopping centres/malls in 6 km radius: None Mall Management: In-house

282

GOLD SOUK & WEDDING SOUK Location: Poontihoora Village, G T Road, New Vytilla Junction, Ernakulam Total Mall Area: 1,03,560.5 sq.ft Total Built-up Area: 4,00,000 sq.ft No. of Levels: 7 No. of Escalators & Lifts: 7 + 7 Positioning/USP: Gold Souk – variety, quality, ambience and convenience. Wedding Souk – a one-stop shop for all wedding requirements

Ampa Housing Development Pvt Ltd

AMPA CENTRE ONE Location: Nelson Manickam Road and Poonamallee High Road Junction City: Chennai Status: Under Construction Planned Launch: January 2008 Total Land Area: 1,74,240 sq.ft Total Mall Space: 6,50,000 sq.ft No. of Floors: 9 Gross Leasable Area: 3,85,000 sq.ft Leased/Sold Space Ratio: 90:10 CAM Charges: At actuals Rental Model: Fixed Rent/Revenue Share Atrium Area: 3,640 sq.ft Shopping Area: 2,20,000 sq.ft Food Court Area: 25,000 sq.ft Leisure & Entertainment: 11,000 sq.ft No. of Escalators/Lifts: 9/7 Catchment Area: Anna Nagar, Kilpauk, Purasaiwalkam, Egmore, Chetpet, Nungambakkam, T Nagar, Ambattur, Kodambakkam, Vadapalani, Saligramam, Koyambedu, Thirumangalam, Mogappair Other shopping centres/malls in 6 km radius: Ozone Mall Avg Footfall on Week Days: 8,00012,000 Avg Footfall on Weekends: 15,00018,000 Mall Management : Outsourced Competitive Advantage: Integration of retail entertainment and dining; 30-35%of new brands in Chennai; ample parking; presence of PVR, McDonalds, Westside, Apple etc. TENANT MIX Anchor 1: Spencer's Hypermarket Status/Area: Booked/56,000 sq.ft Anchor 2: Westside (Department Store) Status/Area: Booked/36,000 sq.ft Anchor 3: PVR (Multiplex) Status/Screens: Booked/7 Screens Total Capacity: 1,800 Seats

(SOUTH)

MALL PROFILE Ashoka Developers & Builders Ltd

ASHOKA METROPOLITAN MALL Location: Banjara Hills City: Hyderabad Status: Ready for Fitout Operational From (Planned): September 2007 Total Investment in the Mall: Rs.30 crore Total Land Area: 52,272 sq.ft Total Mall Space: 2,50,000 sq.ft Gross Leasable Area (GLA): 1,45,615 sq.ft No. of Floors: 3 basements + 6 CAM Charges: Rs.14/sq.ft/month Rental Model: Fixed Minimum Rent Atrium Area: 2,415 Shopping Area: 10,00,000 Food Court Area: 18,000 Parking Area: 1,24,000 Space for No. of 4-wheelers: 350 Space for No. of 2-wheelers: 500 No. of Escalators: 4 No. of Lifts: 5 TENANT MIX

Anchor 1: Spencer's Hypermarket Status/Area: Booked/19,870 sq.ft Anchor 2: Pantaloons Department Store) Status/Area: Booked/17,000 sq.ft Anchor 3: Kirby Electronics (Consumer Electronics) Status/Area: Booked/19,000 sq.ft

283

ASHOKA MALL 2 Location: Kukatpally City: Hyderabad Status: Under Construction Operational From (Planned): December 2008 Total Investment in the Mall: Rs.50 crore Total Land Area: 1,35,036 sq.ft Total Mall Space: 5,00,000 sq.ft Gross Leasable Area (GLA): 3,00,000 sq.ft No. of Floors: 2 basements + 6 CAM Charges: Rs.12/sq.ft/month Rental Model: Fixed Rent and Revenue Sharing Parking Area: 2,00,000 sq.ft

(south)

MALL PROFILE Chennai Citi Centre Holdings Pvt Ltd

Brigade Group

THE ORION

THE ARCADE

CHENNAI CITI CENTRE

Location: Brigade Gateway, Malleswaram City: Bangalore Status: Under Construction Total Mall Investment: Rs.150 crore Total Land Area: 3,04,920 sq.ft Total Mall Space: 7,00,000 sq.ft No. of Floors: 2B+G+4 Gross Leasable Area: 9,00,000 sq.ft Leased/Sold Space Ratio: All leased CAM Charges: Rs.10-15/sq.ft/month (subject to actuals) Rental Model: All options available Atrium Area: 38,000 sq.ft Shopping Area: 6,00,000 sq.ft Food Court Area: 40,000 sq.ft Leisure/Entertainment: 20,000 sq.ft Services Area: 1,50,000 sq.ft Space for No. of 4-wheelers: 1,000 Space for No. of 2-wheelers: 1,000 No of Escalators: 3 pairs No. of Lifts: 4 passenger + 9 service Location Considerations: Connected with all parts of city and Metro Station Catchment Area: Malleswaram Rajajinagar, and all parts of the city Avg Footfall on Week Days: 1,00,000 approx Avg Footfall on Weekends: 2,00,000 approx Mall Management: Outsourced Any Other Details: Regular footfalls from within the campus will be very high as 10,00,000 sq.ft of office space, residential blocks, hospital and a fivestar hotel is within the campus. Competitive Advantage: Located right within the city, easy accessibility; not only caters to the needs of North Bangalore, but to all other areas as well.

Location: Brigade Metropolis, Whitefield Road City: Bangalore Status: Under Construction Total Mall Investment: Rs.25 crore Total Land Area: 70,000 sq.ft Total Mall Space: 10,00,000 sq.ft No. of Floors: G+3 Gross Leasable Area: 13,50,000 sq.ft CAM Charges: Approx Rs.5/sq.ft/month (subject to actuals) Rental Model: All options available Atrium Area: Arcade Shopping Area: 50,000 sq.ft Food Court Area: 20,000 sq.ft Leisure & Entertainment Area: 30,000 sq.ft Services Area: 10,000 sq.ft No. of Lifts: 2 Considerations on choice of location: Well connected with all parts of the city Catchment Area: Whitefield, Airport Road, Indiranagar, KR Puram Other shopping centres/malls in 6 km radius: None Average Footfall on Week Days: 10,000 Average Footfall on Weekends: 25,000 Mall Management: In-house Any Other Details: Regular footfalls from within the campus will be very high, since 7,00,000 sq.ft of office space and residential blocks are within the campus. Competitive Advantage: Located at prime area in Whitefield, with huge upmarket residential areas.

Location: Dr RK Salai City: Chennai Operational From: March 2006 Total Mall Investment: Rs.120 crore Total Land Area: 1,20,000 sq.ft Total Mall Space: 420,000 sq.ft No. of Floors: 2 B + G + 6 Gross Leasable Area: 320,000 sq.ft Leased/Sold Space Ratio: All leased Leasing Agents/Companies: Chesterton Meghraj, CBRE, Colliers, Cushman & Wakefield, Hanu Reddy CAM Charges: Rs.8.90/sq.ft/month for retail and Rs.5.60/sq.ft/month for commercial setups. Rental Model: Fixed rent per sq.ft. on super built-up area Shopping Area: 1,33,457 sq.ft Food Court Area: 32,000 sq.ft Leisure/Entertainment: 50,000 sq.ft Services Area: 45,000 sq.ft Parking Area: 1,10,000 sq.ft Space for No. of 4-wheelers: 532 Space for No. of 2-wheelers: 1,200 No. of Escalators/Lifts: 10/5 Kids’ Play/Creche Area: 4,700 sq.ft Location Considerations: Located near the Marina beach, attracting huge footfalls. Catchment Area: Mylapore, Adyar, Mount Road, Royapettah, Santhome Other shopping centres/malls in 6 km radius: Spencer Plaza Average Footfall on Week Days: 4,000 Average Footfall on Weekends: 8,000 Mall Management: Outsourced Competitive Advantage: Central location (CBD), large food court, first multiplex, etc. TENANT MIX Anchor 1: Lifestyle (Department Store) Status/Area: Operational/75,000 sq.ft Anchor 2: INOX (Multiplex)

284

(SOUTH)

MALL PROFILE DLF Retail Developers Ltd

DLF HYDERABAD

DLF CHENNAI

DLF CHENNAI

Location: Gandhi Medical College, Basheerabagh City: Hyderabad Status: Under Planning Operational From (Planned): To be decided Total Land Area: 2,40,000 sq.ft Total Mall Space: 26,50,000 sq.ft No. of Floors: G +7 (plus office floors and a hotel floor) Gross Leasable Area (GLA): 14,44,000 sq.ft Shopping Area: 4,74,000 sq.ft Food Court Area: 1,20,000 sq.ft Competitive Advantage: Location, mixed land development

Location: MICO City: Chennai Status: Under Construction Operational From (Planned): To be decided Total Land Area: 1,93,000 sq.ft Total Mall Space: 7,22,000 sq.ft No. of Floors: G+3 Gross Leasable Area (GLA): 2,80,000 sq.ft Shopping Area: 2,19,000 sq.ft Food Court Area: 64,000 sq.ft

Location: Madras Race Club City: Chennai Status: Under Planning Operational From (Planned): To be decided Total Land Area: 2,40,000 sq.ft Total Mall Space: 8,30,000 sq.ft No. of Floors: G + 4 Gross Leasable Area (GLA): 7,60,000 sq.ft Shopping Area: 3,58,000 sq.ft Food Court Area: 50,000 sq.ft Space for No. of 4-wheelers: 1,100 Competitive Advantage: Location, concept, architectural design

285

(south)

MALL PROFILE

DLF Retail Developers Ltd

E-city Entertainment (i) Pvt Ltd

Express Infrastructure Pvt Ltd

DLF BANGALORE

FUN REPUBLIC

EXPRESS AVENUE

Location: Bhoruka, Whitefield City: Bangalore Status: Under Planning Operational From (Planned): To be decided Total Land Area: 6,50,000 sq.ft Total Mall Space: 36,00,000 sq.ft No. of Floors: G+4 Gross Leasable Area (GLA): 16,74,000 sq.ft Shopping Area: 14,80,000 sq.ft Food Court Area: 1,15,000 sq.ft Leisure & Entertainment Area: 80,000 sq.ft Space for No. of 4-wheelers: 2,500 Competitive Advantage: Location, large format mall, mixed land use (including a hotel)

Location: Avinashi Road City: Coimbatore Status: Under Construction Operational From (Planned): September 2009 Total Investment in the Mall: Rs.120 crore Total Land Area: 1,72,240 sq.ft Total Mall Space: 6,82,000 sq.ft No. of Floors: 5 Gross Leasable Area (GLA): 4,18,000 sq.ft GLA/GFA Ratio: 62:38 Leased/Sold Space Ratio: All leased Leasing Agents/ Companies: EPMS CAM Charges: As per Actuals Rental Model: Fixed Minimum Rent Atrium Area: 7,500 sq.ft Food Court Area: 16,200 sq.ft Leisure/Entertainment: 9,750 sq.ft No. of Escalators: 18 No. of Lifts: 8 Competitive Advantage: Best upcoming location in the city, automated parking, stores with front visibility from the atrium, etc. Market Area: Posh new areas of Coimbatore, plus highway traffic Mall Management: Outsourced to EPMS

Location: Off Anna Salai City: Chennai Status: Under Construction Planned Launch: September 2008 Total Mall Investment: Rs.300 crore Total Land Area: 4,32,000 sq.ft Total Mall Space: 17,00,000 sq.ft Gross Leasable Area: 8,00,000 sq.ft No. of Floors: 5 Leased/Sold Space Ratio: All leased Rental Model: Both rent & revenue sharing Atrium Area: 15,000 sq.ft Shopping Area: 8,00,000 sq.ft Food Court Area: 55,000 sq.ft Leisure/Entertainment: 5,000 sq.ft Services Area: 50,000 sq.ft Parking Area: 6,00,000 sq.ft Space for No. of 4-wheelers: 2,500 Space for No. of 2-wheelers: 2,500 Catchment Area: Nungambakkam, Egmore, T Nagar, Mylapore, Alwarpet Other shopping centres/malls in 6 km radius: Spencer Plaza, Citi Centre Avg Footfall on Week Days: 30,000 Avg Footfall on Weekends: 1,00,000 Other Details: First mall in India to have a hypermarket of about 1,00,000 sq.ft, with travellator. Competitive Advantage: Located on CBD, first mixed-use development with five-star hotel and office block; will be a landmark destination centre in Chennai.

TENANT MIX

Anchor 1: Shoppers’ Stop (Department Store) Anchor 2: Fun Cinemas (Multiplex) Others: Hypermarket, small format retail outlets, entertainment and food court

286

TENANT MIX

Anchor 1: Pantaloon/M&S/Debenhams Status/Area: Under Negotiation/ 60,000 sq.ft Anchor 2: Satyam (Multiplex) Status: Under Negotiation No. of Screens: 6 Screens

Ferns Builders & Developers

(SOUTH)

MALL PROFILE Habitat Shelters Pvt Ltd

FERNS MALL

URBAN OASIS

URBAN OASIS

Location: Outer Ring Road City: Bangalore Status: Planned Operational From (Planned): 2009 Total Mall Investment: Rs.200 crores Total Land Area: 1,96,020 sq.ft Total Mall Space: 8,00,000 sq.ft No. of Floors: G+5 Gross Leasable Area: 4,50,000 sq.ft Leased/Sold Space Ratio: All leased Leasing Agents/ Companies: Trammell Crow Meghraj Property Consultants Rental Model: Combination of Fixed Minimum Rent, Percentage Rent, Revenue Sharing Shopping Area: 2,50,000 sq.ft Food Court Area: 35,000 sq.ft Leisure/Entertainment: 20,000 sq.ft Parking Area: 3,50,000 sq.ft No of Escalators: 4 No. of Lifts: 7 Considerations on choice of location: Huge catchment area Catchment Area: Five kilometre radius Other shopping centres/malls in 6 km radius: None Mall Management: Outsourced Competitive Advantage: Premium Mall

Location: Mysore City: Mysore Status: Under Construction Planned Launch: June 2008 Total Mall Investment: Rs.60 crore Total Land Area: 68,000 sq.ft Total Mall Space: 2,25,000 sq.ft Gross Leasable Area: 2,25,000 sq.ft No. of Floors: 2B + 10 GLA/GFA Ratio: 1:1.40 Leased/Sold Space Ratio: 1:0.33 Leasing Agents/Companies: Self CAM Charges: Rs.12 - 15/sq.ft/month Rental Model: Avg of Rs.55/sq.ft Atrium Area: 10,000 sq.ft Food Court Area: 15,000 sq.ft Leisure/Entertainment: 10,000 sq.ft Space for No. of 4-wheelers: 300 Space for No. of 2-wheelers: 250 No. of Escalators: 12 No. of Lifts: 5 x 15 passenger Promotion schemes: Bus pickup & drop Considerations on choice of location: Near prime residential areas etc Catchment Area: Jayalakshmipuram, Vontikopal, Mysore University, Kalidas Road Other shopping centres/malls in 6 km radius: Prozone, IDEB Avg Footfall on Week Days: 5,000 Avg Footfall on Weekends: 25,000 Mall Management: In-house Competitive Advantage: Best mix of retail, gaming, fine dining, prime location, 250 sq.ft frontage and new generation fitouts TENANT MIX Anchor 1: Piramyd (Department Store) Status/Area: Booked/55,000 sq.ft Anchor 2: PVR Cinemas (Multiplex) Status/Screens: Booked/2 Screens

Location: Hubli City: Hubli Status: Under Construction Planned Launch: September 2008 Total Investment in the Mall: Rs.60 crore Total Land Area: 1,09,000 sq.ft Total Mall Space: 3,50,000 sq.ft Gross Leasable Area: 2,80,000 sq.ft No. of Floors: 2BF+6F+5 GLA: GFA Ratio: 1:1.40 Leased/Sold Space Ratio: 1:0.33 Leasing Agents/Companies: Self CAM Charges: Rs.12 - 15/sq.ft/month Rental Model: Av. of Rs.45/sq.ft Atrium Area: 6,000 sq.ft Food Court Area: 15,000 sq.ft Leisure/Entertainment Area: 10,000 sq.ft Space for No. of 4-wheelers: 300 Space for No. of 2-wheelers: 250 No. of Escalators: 10 No. of Lifts: 5x16 pasenger Promotion schemes: Bus pickup & drop Considerations on choice of location: Near prime residential areas, colleges etc Catchment Area: Vidyanagar Average Footfall on Week Days: expected 3,000 Average Footfall on Weekends: 20,000 Mall Management: In-house Competitive Advantage: Prime location TENANT MIX Anchor 1: Spencers (Hypermarket) Status/Area: Booked/40,000 sq.ft Anchor 2: INOX (Multiplex)

TENANT MIX

Anchor 1: Multiplex Status: Under negotiation No. of Screens/Total Capacity: 5 Screens/1,200 Seats Anchor 2: Department Store Status: Under negotiation

287

(south)

MALL PROFILE

Habitat Shelters Pvt Ltd

Hi-lite Builders Pvt Ltd

IDEB Projects Pvt Ltd

URBAN OASIS

THE FOCUS MALL

SIGMA MALL

Location: Davangere City: Davangere Status: Planned Operational From (Planned): January 2009 Total Investment in the Mall: Rs.30 crore Total Land Area: 1,30,000 sq.ft Total Mall Space: 2,40,000 sq.ft Gross Leasable Area: 2,40,000 sq.ft No. of Floors: 1B + GF + 2 Leased/ Sold Space Ratio: 1:0.33 Leasing Agents/ Companies: Self CAM Charges: Rs.10 - 12per sq.ft/month Rental Model: Av. of Rs.45/- per sft Space for No. of 4-wheelers: 200 Space for No. of 2-wheelers: 200 No of Escalators: 6 No. of Lifts: 2x16 passenger Promotion schemes: Bus pickup &drop Considerations on choice of location: near prime residential areas colleges etc Catchment Area: Main Trunk Road Connecting Harihar & Davangere Other shopping centres/malls in 6 km radius: None Average Footfall on Week Days: expected 5,000 Average Footfall on Weekends: 25,000 Mall Management: In-house Competitive Advantage: Huge student population and youthful brands

Location: Rajaji Road-Mavoor Road Jn. City: Calicut, Kerala Status: Under Construction Planned Launch: September, 2007 Total Land Area: 63,980 sq.ft Total Mall Space: 2,40,746 sq.ft No. of Floors: 6 Gross Leasable Area: 1,34,847 sq.ft CAM Charges: Rs.20 per sq.ft/month Rental Model: Fixed Minimum Rent Atrium Area: 7,717 sq.ft Shopping Area: 1,13,544 sq.ft Food Court Area: 17,981 sq.ft Leisure/Entertainment Area: 3,322 sq.ft Services Area: 4,206 sq.ft Parking Area: 42,125 sq.ft Space for No. of 4-wheelers: 300 Space for No. of 2-wheelers: 300 No. of Escalators: 6 No. of Lifts: 5 Kids Play/Creche Area: 3,322 sq.ft Considerations on choice of location: Easy access. Already a prime area. Catchment Area: Stadium Complex, Mavoor Road, IIM, NIT, Medical College Other shopping centres/malls in 6 km radius: No malls, shopping centres on SM Street and Mavoor Road.

Location: Cunningham Road City: Bangalore Status: Operational Total Mall Area: 2,35,000 sq.ft CAM Charges: Rs.15 per sq.ft/month Atrium Area: 20,000 sq.ft Space for No. of 4-wheelers: 320 Space for No. of 2-wheelers: 400 Catchment Area: North Bangalore Other shopping centres/malls in 6 km radius: MG Road Average Footfall on Week Days: 10,000 Average Footfall on Weekends: 40,000

TENANT MIX

Anchor 1: Cinemax (Multiplex) Status: Under negotiation

TENANT MIX

Anchor 1: Spencer's Hyper (Hypermarket) Status/Area: Booked/19,686 sq.ft Anchor 2: Max (Department Store) Status/Area: Booked/17,981 sq.ft

288

Food Express Stores India Ltd

Inorbit Malls (india) Pvt Ltd

INOBIT MALL - CYBERABAD Location: Hitech City, Madhapur, Cyberabad City: Hyderabad Status: Under Construction Total Land Area: 3,31,047 sq.ft Total Mall Space: 12,40,641 sq.ft No. of Floors: 8 Gross Leasable Area: 4,93,883 sq.ft Atrium Area: 12,174 sq.ft Shopping Area: 6,88,458 sq.ft Food Court Area: 20,662 sq.ft Leisure/Entertainment: 21,647 sq.ft Services Area: 1,03,076 sq.ft Parking Area: 4,23,362 sq.ft Space for No. of 4-wheelers: 872 No. of Escalators: 24 No. of Lifts: 4 Passenger, 8 Service TENANT MIX Anchor 1: Hypercity (Hypermarket) Area: 84,163 sq.ft Anchor 2: SSL Area: 1,03,777 sq.ft

(SOUTH)

MALL PROFILE

INORBIT VILLAGE POCHARAM Location: Pocharam City: Hyderabad Status: Under Construction Total Land Area: 7,08,285 sq.ft Total Mall Space: 4,07,158 sq.ft (phase-I) No. of Floors: Gr.+Mezzanine Gross Leasable Area (GLA): 2,97,540 sq.ft Atrium Area: 45,866 sq.ft (open courtyard format) Shopping Area: 3,62,729 sq.ft Food Court Area: 45,866 sq.ft (open courtyard) Services Area: 44,429 sq.ft Parking Area: 3,39,000 sq.ft (surface parking) Space for No. of 4-wheelers: 835 TENANT MIX

Anchor-1: Hypercity (Hypermarket) Area: 1,16,542 sq.ft

TOTAL Location: Koramangala City: Bangalore Status: Operational Operational From: July, 2007 Total Mall Investment: Rs.69 crore Total Land Area: 85,000 sq.ft Total Mall Space: 1,60,000 sq.ft No. of Floors: 4 GLA/GFA Ratio: 63.15 : 37.85 Leasing Agents/Companies: Inhouse CAM Charges: Rs.15/sq.ft/month Rental Model: Fixed Rent Atrium Area: 3,500 sq.ft Shopping Area: 1,60,000 sq.ft Food Court Area: 40,000 sq.ft Space for No. of 4-wheelers: 250 Space for No. of 2-wheelers: 150 No of Escalators: 9 travelators Other shopping centres/malls in 6 km radius: The Forum Avg Footfall on Week Days: 12,000 Avg Footfall on Weekends: 25,000 Mall Management: In-house Competitive Advantage: Unique format concept of a hypermarket, retail brands and food court; Victorian vintage architecture. TENANT MIX

Anchor 1: Total (Hypermarket) Status/Area: Operational/1,20,000 sq.ft No. of Floors: 2 Other Brands/Retailers: McDonalds, VIP Luggage, Peter England, Planet Fashion, Just in Vogue, Pepe, Tamanna, Thomas Scott, Cool Cottons, Spykar, Café Coffee Day, Identiti, Hollywood Shoes, Reebok, W, Kanz, City Deli, Oxygen Bar and Ozone Spa, Dominos Pizza, Ohri's Food Court and concept 289

(south)

MALL PROFILE

Food Express Stores India Ltd

Kshitij Investment Advisory Co.Ltd

TOTAL

HYDERABAD – UPPAL

Location: Sarjapur Road City: Bangalore Status: Under Construction Operational From (Planned): October 2007 Total Investment in the Mall: Rs.72 crore Total Land Area: 1,55,000 sq.ft Total Mall Space: 2,10,000 sq.ft No. of Floors: 4 GLA/GFA Ratio: 65 : 35 Leasing Agents/Companies: Inhouse CAM Charges: Rs.18/sq.ft/month Rental Model: Fixed Rent Shopping Area: 2,10,000 sq.ft. Food Court Area: 42,000 sq.ft. Space for No. of 4-wheelers: 450 Space for No. of 2-wheelers: 200 No of Escalators: 9 travelators Other shopping centres/malls in 6 km radius: None Mall Management: In-house Competitive Advantage: Unique format concept of a hypermarket, retail brands, food court, restaurants and entertainment.

Location: Uppal City: Hyderabad Operational From (Planned): April 2008 Project Type: PRIL leased Mall Total Mall Space: 2 ,15,000 sq.ft Space for No. of 4-wheelers: 172 No. of Floors: G + 4 Floor Plate: 43,000 sq.ft Positioning of Mall: Value/Lifestyle TENANT MIX

Anchor 1: Super/Hypermarket Anchor 2: Department Store Anchor 3: Multiplex Anchor 4: Food court Anchor 5: Entertainment arcade Anchor 6: Consumer Durables/Electronics anchor Anchor 7: Home Furnishing anchor Anchor 8: Books & Music anchor Anchor 9: Gym/Beauty anchor Others: Vanilla Retail

TENANT MIX

Anchor 1: Total (Hypermarket) Other Brands/Retailers: John Players, Reebok, Levi's, Woodlands, Adidas, Lilliput, Timex, Jockey, Spykar, Hotspot, Crossword, Wills Lifestyle, Food Court, restaurants, kids' entertainment zone and roof-top lounge bar.

290

TRIVANDRUM - PALAYAM JUNCTION Location: Palayam Junction City: Thiruvanathapuram Operational From (Planned): February 2009 Project Type: Kshitij Mall Total Mall Space: 2,71,000 sq.ft Space for No. of 4-wheelers: 168 No of Floors: G + 4 Floor Plate: 54,000 sq.ft Positioning of Mall: Value/Lifestyl e TENANT MIX

Anchor 1: Super/Hypermarket Anchor 2: Department Store Anchor 3: Multiplex Anchor 4: Food court Anchor 5: Entertainment arcade Anchor 6: Consumer Durables/Electronics anchor Anchor 7: Home Furnishing anchor Anchor 8: Books & Music anchor Anchor 9: Gym/Beauty anchor Others: Vanilla Retail

(SOUTH)

MALL PROFILE Kshitij Investment Advisory Co. Ltd.

MADURAI - RACE COURSE ROAD Location: Madurai Race Course Road City: Madurai Operational From (Planned): April 2009 Project Type: Kshitij Mall Total Mall Space: 4,00,000 sq.ft Space for No. of 4-wheelers: 600 No. of Floors: G + 3 Floor Plate: 1,00,000 sq.ft Positioning of Mall: Value/Lifestyle TENANT MIX

Anchor 1: Super/ Hypermarket Anchor 2: Department Store Anchor 3: Multiplex Anchor 4: Food court Anchor 5: Entertainment arcade Anchor 6: Consumer Durables/Electronics anchor Anchor 7: Home Furnishing anchor Anchor 8: Books & Music anchor Anchor 9: Gym/Beauty Anchor Others: Vanilla Retail

COCHIN - MG ROAD

MYSORE, GARUDA

Location: MG Road City: Cochin Operational From (Planned): September 2008 Project Type: Kshitij Mall Total Mall Space: 4,20,000 sq.ft Space for No. of 4-wheelers: 454 No. of Floors: G + 7 Floor Plate: 62,000 sq.ft Positioning of Mall: Lifestyle

Location: Near Mysore Palace City: Mysore Operational From (Planned): April 2008 Project Type: Kshitij Mall Total Mall Space: 2,75,000 sq.ft Space for No. of 4-wheelers: 500 No. of Floors: G + 2 Floor Plate: 96,000 sq.ft Positioning of Mall: Value/Lifestyle

TENANT MIX

TENANT MIX

Anchor 1: Super/ Hypermarket Anchor 2: Department Store Anchor 3: Multiplex Anchor 4: Food court Anchor 5: Entertainment arcade Anchor 6: Consumer Durables/Electronics anchor Anchor 7: Home Furnishing anchor Anchor 8: Books & Music anchor Anchor 9: Gym/Beauty Anchor Others: Vanilla Retail

Anchor 1: Super/ Hypermarket Anchor 2: Department Store Anchor 3: Multiplex Anchor 4: Food court Anchor 5: Entertainment arcade Anchor 6: Consumer Durables/Electronics anchor Anchor 7: Home Furnishing anchor Anchor 8: Books & Music anchor Anchor 9: Gym/Beauty Anchor Others: Vanilla Retail

291

(SOUTH)

MALL PROFILE

Kshitij Investment Advisory Co. Ltd.

CHENNAI - VELACHERY

BANGALORE WHITEFIELD

Location: Velachery City: Chennai Operational From (Planned): September 2009 Project Type: Market City Total Mall Space: 23,00,000 sq.ft Space for No. of 4-wheelers: 2,500

Location: Whitefield City: Bangalore Operational From (Planned): June 2009 Project Type: Market City Total Mall Space: 19,00,000 sq.ft Space for No. of 4-wheelers: 2,600 No of Floors: G + 3 Floor Plate: 4,80,000 sq.ft Positioning of Mall: Market City

TENANT MIX

Anchor 1: Super/ Hypermarket Anchor 2: Department Store Anchor 3: Multiplex Anchor 4: Food court Anchor 5: Entertainment arcade Anchor 6: Consumer Durables/Electronics anchor Anchor 7: Home Furnishing anchor Anchor 8: Books & Music anchor Anchor 9: Gym/Beauty Anchor Others: Vanilla Retail

TENANT MIX

Anchor 1: Super/ Hypermarket Anchor 2: Department Store Anchor 3: Multiplex Anchor 4: Food court Anchor 5: Entertainment arcade Anchor 6: Consumer Durables/Electronics anchor Anchor 7: Home Furnishing anchor Anchor 8: Books & Music anchor Anchor 9: Gym/Beauty Anchor Others: Vanilla Retail

292

HYDERABAD NECKLACE ROAD Location: Necklace Road City: Hyderabad Operational From (Planned): September 2009 Project Type: Market City (Retail + Commercial + Hospitality) Total Mall Space: 8,00,000 sq.ft Positioning of Mall: Market City TENANT MIX

Anchor 1: Super/ Hypermarket Anchor 2: Department Store Anchor 3: Multiplex Anchor 4: Food court Anchor 5: Entertainment arcade Anchor 6: Consumer Durables/Electronics anchor Anchor 7: Home Furnishing anchor Anchor 8: Books & Music anchor Anchor 9: Gym/Beauty Anchor Others: Vanilla Retail

(SOUTH)

MALL PROFILE Kshitij Investment Advisory Co. Ltd.

SECUNDERABAD - WESLEY BOYS

SECUNDERABAD - WESLEY GIRLS

Location: Off MG Road City: Secunderabad Operational From (Planned): September 2008 Project Type: Kshitij Mall Total Mall Space: 3,10,000 sq.ft Space for No of 4-wheelers: 206 No of Floors: 2 Basement, G + 5 Floor Plate: 46,000 sq.ft Positioning of Mall: Value/Life Style

Location: Sarojinidevi Road, Next to South Central Railway Head Office City: Secunderabad Operational From (Planned): September 2008 Project Type: Kshitij Mall Total Mall Space: 3,02,000 sq.ft Space for No. of 4-wheelers: 201 No. of Floors: G + 5 Floor Plate: 50,000 sq.ft Positioning of Mall: Value/Lifestyle

TENANT MIX

Anchor 1: Super/Hypermarket Anchor 2: Department Store Anchor 3: Multiplex Anchor 4: Food court Anchor 5: Entertainment arcade Anchor 6: Consumer Durables/Electronics anchor Anchor 7: Home Furnishing anchor Anchor 8: Books & Music anchor Anchor 9: Gym/Beauty Anchor Others: Vanilla Retail

TENANT MIX

Anchor 1: Super/Hypermarket Anchor 2: Department Store Anchor 3: Multiplex Anchor 4: Food court Anchor 5: Entertainment arcade Anchor 6: Consumer Durables/Electronics anchor Anchor 7: Home Furnishing anchor Anchor 8: Books & Music anchor Anchor 9: Gym/Beauty Anchor Others: Vanilla Retail

293

VIZAG - WALTIER ROAD Location: Voltaire Road City: Visakhapatnam Project Type: Kshitij Mall Total Mall Space: 4,25,000 sq.ft No of Floors: G + 5 Floor Plate: 70,000 sq.ft Positioning of Mall: Value/Lifestyle TENANT MIX

Anchor 1: Super/ Hypermarket Anchor 2: Department Store Anchor 3: Multiplex Anchor 4: Food court Anchor 5: Entertainment arcade Anchor 6: Consumer Durables/Electronics anchor Anchor 7: Home Furnishing anchor Anchor 8: Books & Music anchor Anchor 9: Gym/Beauty Anchor Others: Vanilla Retail

(SOUTH)

MALL PROFILE

Kshitij Investment Advisory Co. Ltd. LEPL Projects Ltd

BANGALORE - BANASWADI

HIGHSTREET

CITYSQUARE

Location: Banaswadi Road City: Bangalore Operational From (Planned): October 2008 Project Type: PRIL leased Total Mall Space: 2,26,000 sq.ft Space for No of 4-wheelers: 347 No of Floors: G + 3 Floor Plate: 46,000 sq.ft Positioning of Mall: Value/Lifestyle

Location: Ring Road City: Vijayawada Status: Under-Construction Planned Launch: May 2008 Total Mall Investment: Rs.20 crore Total Land Area: 47,564 sq.ft Total Mall Space: 2,28,500 sq.ft No. of Floors: 8 Gross Leasable Area: 1,20,000 sq.ft Leasing Agents/Companies: Trammell Crow and LEPL Projects CAM Charges: Included in Rent Rental Model: Fixed Minimum Rent Tenant Mix: Multiplex + Retail Shopping Area: 82,825 sq.ft Leisure/Entertainment: 55,217 sq.ft Parking Area: 90,458 sq.ft No. of Escalators/Lifts: 2/5 Mall Management: Outsourced

Location: MG Road City: Vijayawada Status: Planned Operational From (Planned): September 2008 Total Investment in the Mall: Rs.15 crore Total Land Area: 41,803 sq.ft Total Mall Space: 1,88,160 sq.ft No. of Floors: 6 Gross Leasable Area (GLA): 1,88,160 sq.ft CAM Charges: Included in Rent Rental Model: Fixed Minimum Rent Tenant Mix: Shopping + Food Court + Entertainment Shopping Area: 13,510 sq.ft Food Court Area: 32,600 sq.ft Leisure & Entertainment Area: 65,700 sq.ft Services Area: 13,000 sq.ft Parking Area: 60,857 sq.ft Space for 4-wheelers: 45,850 sq.ft Space for 2-wheelers: 15,000 sq.ft No. of Escalators: 2 No. of Lifts: 3 Mall Management: Outsourced

TENANT MIX

Anchor 1: Super/Hypermarket Anchor 2: Department Store Anchor 3: Multiplex Anchor 4: Food court Anchor 5: Entertainment arcade Anchor 6: Consumer Durables/Electronics anchor Anchor 7: Home Furnishing anchor Anchor 8: Books & Music anchor Anchor 9: Gym/Beauty Anchor Others: Vanilla Retail

TENANT MIX

Anchor 1: Shringar Cinemas (Multiplex) Status: Booked No. of Screens: 4 Screens Anchor 2: Shoppers Stop (Department Store) Status: Booked No. of Floors: 3

294

LEPL Projects Ltd

(SOUTH)

MALL PROFILE Mahavir Constructions

HYPERCITY

LEPL MALL 4

MAHAVIR MALL

Location: Guntur National Highway City: Guntur Status: Planned Operational From (Planned): April 2008 Total Mall Investment: Rs.12 crore Total Mall Space: 1,30,000 sq.ft Gross Leasable Area: 1,30,000 sq.ft Leasing Agents/Companies: Inhpuse CAM Charges: Included in Rent Rental Model: Fixed Minimum Rent Shopping Area: 90,000 sq.ft Food Court Area: 15,000 sq.ft Leisure & Entertainment Area: NA Services Area: 25,000 sq.ft Parking Area: 60,000 sq.ft Space for No. of 4-wheelers: 45,000 sq.ft Space for No. of 2-wheelers: 15,000 sq.ft No of Escalators: NA No. of Lifts: NA Catchment Area: Located in the midst of Vijayawada Guntur National Highway surrounded by different districts where thousands of people commute through this corridor for trade and business. Mall Management: Hypercity

Location: VJA - Guntur National Highway City: Guntur Status: Under Planning Operational From (Planned): 2009 Total Investment in the Mall: Under Planning Leasing Agents/Companies: IJM Lingamaneni Township Pvt Ltd CAM Charges: Under Planning Rental Model: Fixed Minimum Rent Tenant Mix: Under Planning Mall Management: JM Lingamaneni Township Pvt Ltd.

Location: Somajiguda City: Hyderabad Operational From: Operational Total Land Area: 43,560 sq.ft Total Mall Space: 1,00,000 sq.ft No. of Floors: 4 No of Escalators: 2 No. of Lifts: 6 Catchment Area: Somajiguda ,Banjara Hills, Hitech City Mall Management: Outsourced

TENANT MIX

Anchor : Hypercity (Hypermarket) Status: Booked

295

(SOUTH)

MALL PROFILE

Maheshwari Megaventures Ltd

Mangal Tirth Estate Ltd

MPM MALL

MPM BONSAI

SPENCER PLAZA,

Location: Abids City: Hyderabad Status: Operational Operational From: 2000 Total Land Area: 55,000 sq.ft Total Mall Space: 1,80,000 sq.ft Gross Leasable Area (GLA): 1,50,000 sq.ft Atrium Area: 5,000 sq.ft Shopping Area: 1,00,000 sq.ft Food Court Area: 10,000 sq.ft Leisure & Entertainment Area: 10,000 sq.ft Services Area: 5,000 sq.ft Parking Area: 50,000 sq.ft Space for No. of 4-wheelers: 120 Space for No. of 2-wheelers: 500 No. of Levels: 6 No. of Escalators: 0 No. of Lifts: 3 Total Lift Capacity: 28 persons Creche Area: No Kids Zone Area: Yes USP of the Mall: First shopping mall in the city Considerations on choice of Location: Centrally located shopping area Catchment Area: One of the oldest commercial locations in the city with very strong high street shopping destinations Average Footfalls on Week days: 10,000 Average Footfall on Weekends: 25,000

Location: Himayatnagar City: Hyderabad Status: Under-Construction Total Land Area: 27,000 sq.ft Total Mall Space: 1,20,000 sq.ft Gross Leasable Area (GLA): 1,00,000 sq.ft Atrium Area: 2,500 sq.ft Shopping Area: 60,000 sq.ft Food Court Area: 15,000 sq.ft Leisure & Entertainment Area: 25,000 sq.ft Services Area: 5,000 sq.ft Parking Area: 30,000 sq.ft (3-Level) Space for No. of 4-wheelers: 225 Space for No. of 2-wheelers: 500 No. of Levels: 6 No. of Escalators: 4 Levels connected with Escalators: 5 No of Lifts: 3 Total Lift Capacity: 39 persons Creche Area: Yes Kids Zone Area: Yes USP of the Mall: Strategic location; and Multiplex anchor Considerations on Choice of Location: Centrally located, good residential and commercial catchment Description of Catchment Area: Residential areas, schools, colleges and commercial areas Average Footfalls on Week days: 10,000 (expected) Average Footfall on Weekends: 20,000 (expected) Any other details: First mall in the city with hydraulic car-lift parking system

Location: 769 Anna Salai City: Chennai Operational From: 1990 Super Built-Up Area: 18,50,000 sq.ft Gross Leasable Area: 13,00,000 sq.ft No. of Floors: Ground + 3 shopping + 3 Office levels Atrium Area: 7,500 sq.ft Shopping Area: 5,50,000 sq.ft Entertainment Area: 80,000 sq.ft Food Area: 14,500 sq.ft Parking Space: Two-level basement parking Space for No. of 4-wheelers: 750 Space for No. of 2-wheelers: 600 No. of Levels: Ground + 8 No. of Lifts: 7 (including 1 service lift) Tenant Mix: 48% fashion retailing, 23% services, 22% office space and 7% leisure and entertainment Positioning/USP: Location and first mover advantage as, arguably, India's first mall.

296

Marg Constructions Ltd

Pantaloons Retail (india) Ltd

(SOUTH)

MALL PROFILE Embassy Group

RIVERSIDE MALL

HYDERABAD CENTRAL

BANGALORE CENTRAL

Location: Karapakkam City: Chennai Status: Under Construction Operational From (Planned): Not decided Total Investment in the Mall: Rs.300 crore Total Land Area: 319,730.4 sq.ft Total Mall Space: 12,79,000 sq.ft Gross Leasable Area (GLA ): 8,00,000 sq.ft No. of Floors: 3B+13 Leasing Agents/Companies: Not yet decided Atrium Area: 73,969.592 sq.ft Shopping Area: 17,222.256 sq.ft Food Court Area: 17,222.256 sq.ft Leisure & Entertainment Area: 20,193.095 sq.ft Services Area: 39,191.397 sq.ft Parking Area: 3,00,000 sq.ft No of Escalators: 16 No. of Lifts: 18 Other shopping centres/malls in 6 km radius: None

Location: Punjagutta Cross Road, Hyderabad City: Hyderabad Status: Operational Total Mall Space: 2,50,000 sq.ft Food Court area: 9,000 sq.ft Children’s play area: 2,000 sq.ft No. of Levels: 5 Parking Capacity: 450 car parks; double basement parking area Catchment: Attracts consumers from both the Old and New City Positioning/USP: Complete family entertainment destination Tenants: Wills Lifestyle, Turtle, Wrangler, Planet M, Provogue, Royal Sporting House, Lee, etc.

Location: Residency Road City: Bangalore Status: Operational Total Mall Area: 1,25,000 sq.ft Leased/Sold Space Ratio: All leased Rental Model: Mixed Model of Fixed Minimum Rent/Percentage Rent/Revenue Sharing Space for No. of 4-wheelers: 200 Space for No. of 2-wheelers: 1,000 Catchment Area: MG Road, Brigade Road, Church Street and Residency Road Other shopping centres/malls in 6 km radius: Garuda Mall, MG Road, Brigade Road and Commercial Street Average Footfall on Week Days: 10,000 Average Footfall on Weekends: 50,000 USP of the Mall: India's first seamless mall.

297

(SOUTH)

MALL PROFILE

Prestige Estates Projects Pvt Ltd

THE FORUM

EVA MALL

THE FORUM VALUE MALL

Location: Hosur Road, Koramangala City: Bangalore Status: Operational Operational From: February, 2004 Total Land Area: 192,000 sq.ft Total Mall Space: 650,000 sq.ft No. of Floors: 4 Gross Leasable Area: 350,000 sq.ft Leased/ Sold Space Ratio: All leased Leasing Agents/Companies: Direct CAM Charges: On Actuals (average between Rs.12-14/sq.ft/month) Rental Model: Fixed Minimum Rent Atrium Area: 80,000 sq.ft Shopping Area: 1,70,000 sq.ft Food Court Area: 24,000 sq.ft Leisure/Entertainment: 1,00,000 sq.ft Services Area: 6,000 sq.ft Parking Area: 3,00,000 sq.ft Space for No. of 4-wheelers: 600 Space for No. of 2-wheelers: 650 No. of Escalators: 12 No. of Lifts: 3 Passenger + 4 Freight Kids Play/Creche Area: 2,000 sq.ft Location Considerations: Quality of catchment Catchment Area: Prime residential areas within 5 km radius Other shopping centres/malls in 6 km radius: Garuda Mall Avg Footfall on Week Days: 25,000 Avg Footfall on Weekends: 55,000 Mall Management: In-house

Location: Brigade Road, City: Bangalore Status: Operational Operational From: June, 2005 Total Mall Space: 67,000 sq.ft Leased/Sold Space Ratio: All leased Leasing Agents/Companies: Direct CAM Charges: At Actuals Rental Model: Fixed Minimum Rent No. of Lifts: 2 passenger + 1 freight Kids Play/Creche Area: 2,600 sq.ft Considerations on choice of location: High street destination Other shopping centres/malls in 6 km radius: Garuda Mall, Bangalore Central Mall Management: In-house

Location: Varthur Road, Whitefield City: Bangalore Status: Under-Construction Operational From (Planned): May 2008 Total Mall Space: 5,00,000 sq.ft Leased/Sold Space Ratio: All leased Leasing Agents/Companies: Direct CAM Charges: At Actuals Rental Model: Fixed Minimum Rent Shopping Area: 2,10,000 sq.ft Food Court Area: 60,000 sq.ft Leisure & Entertainment Area: 64,000 sq.ft Parking Area: 2,80,000 sq.ft Space for No of 4-wheelers: 800

TENANT MIX

Anchor 1: PVR Cinemas (Multiplex) Status/Screens: Operational/11 Anchor 2: Landmark (Bookstore) Status/Area: Operational/30,000 sq.ft Anchor 3: Westside (Department Store) Status/Area: Operational/25,000 sq.ft Anchor 4: Transit Food Court Status/Area: Operational/19,000 sq.ft

298

(SOUTH)

MALL PROFILE Prestige Estates Projects Pvt Ltd

THE FORUM

THE FORUM

THE FORUM

Location: Vadapalani City: Chennai Status: Under-Construction Operational From (Planned): November 2008 Total Mall Space: 11,00,000 sq.ft Leased/Sold Space Ratio: All leased Leasing Agents/Companies: Direct CAM Charges: At Actuals Rental Model: Fixed Minimum Rent Shopping Area: 3,30,000 sq.ft Food Court Area: 1,00,000 sq.ft Leisure & Entertainment Area: 1,26,000 sq.ft Parking Area: 5,25,000 sq.ft Space for No of 4-wheelers: 1,500

Location: Anna Salai City: Chennai Status: Under-Construction Operational From (Planned): November 2008 Total Mall Space: 12,75,000 sq.ft Leased/Sold Space Ratio: All leased Leasing Agents/Companies: Direct CAM Charges: At Actuals Rental Model: Fixed Minimum Rent Shopping Area: 3,50,000 sq.ft Food Court Area: 50,000 sq.ft Leisure & Entertainment Area: 95,000 sq.ft Parking Area: 5,95,000 sq.ft Space for No. of 4-wheelers: 1700

Location: Kukatpally City: Hyderabad Status: Under - Construction Operational From (Planned): November, 2008 Total Mall Space: 1,060,000 sq.ft Leased/Sold Space Ratio: All leased Leasing Agents/Companies: Direct CAM Charges: At Actuals Rental Model: Fixed Minimum Rent Shopping Area: 4,40,000 sq.ft Food Court Area: 30,000 sq.ft Leisure & Entertainment Area: 1,10,000 sq.ft Parking Area: 5,25,000 sq.ft Space for No. of 4-wheelers: 1,500

299

(SOUTH)

MALL PROFILE

Prestige Estates Projects Pvt Ltd

P S Group Realty Ltd

THE FORUM

THE FORUM

THE GRAND

Location: Mangalore City: Mangalore Status: Under-Construction Operational From (Planned): November 2008 Total Mall Space: 6,25,000 sq.ft Leased/Sold Space Ratio: All leased Leasing Agents/Companies: Direct CAM Charges: At Actuals Rental Model: Fixed Minimum Rent Shopping Area: 2,65,000 sq.ft Food Court Area: 4,000 sq.ft Leisure & Entertainment Area: 98,000 sq.ft Parking Area: 3,50,000 sq.ft Space for No. of 4-wheelers: 1,000

Location: Cochin City: Cochin Status: Under-Construction Operational From (Planned): November 2008 Total Mall Space: 10,70,000 sq.ft Leased/Sold Space Ratio: All leased Leasing Agents/Companies: Direct CAM Charges: At Actuals Rental Model: Fixed Minimum Rent Shopping Area: 3,40,000 sq.ft Food Court Area: 50,000 sq.ft Leisure & Entertainment Area: 80,000 sq.ft Parking Area: 4,37,500 sq.ft Space for No. of 4-wheelers: 1,250

Location: Velachery City: Chennai Status: Planned Operational From (Planned): 2009 Total Land Area: 1,44,000 sq.ft Total Mall Space: 3,50,000 sq.ft Gross Leasable Area (GLA): 2,39,000 sq.ft No. of Floors: 4 Leased/Sold Space Ratio: All leased Leasing Agents/Companies: Open CAM Charges: At Actuals Rental Model: All Lease Shopping Area: 1,87,000 sq.ft Food Court Area: 15,800 sq.ft Services Area: 36,359.71 sq.ft Parking Area: 1,38,586 sq.ft Space for No. of 4-wheelers: 400 Space for No. of 2-wheelers: 500 No. of Escalators: 14 No. of Lifts: 5 Kids' Play/Creche Area: Available Competitive Advantage: Location

300

P S Group Realty Ltd

Puravankara Projects Ltd

(SOUTH)

MALL PROFILE Trishul Developers

THE GRAND

THE PAVILION

TRISHUL DEVELOPERS MALL

Location: Avinashi Road City: Coimbatore Status: Planned Operational From (Planned): 2009 Total Land Area: 2,85,000 sq.ft Total Mall Space: 12,50,000 sq.ft Gross Leasable Area (GLA): 8,56,000 sq.ft No. of Floors: 4 Leased/Sold Space Ratio: All leased Leasing Agents/Companies: Property Zone & Others CAM Charges: At Actuals Rental Model: All leased space Atrium Area: 10,000 sq.ft Shopping Area: 7,56,000 sq.ft Food Court Area: 60,000 sq.ft Leisure & Entertainment Area: 30,000 sq.ft Parking Area: 4,50,000 sq.ft Space for No. of 4-wheelers: 1,500 Space for No. of 2-wheelers: 1,000 No. of Escalators: 40 No. of Lifts: 10 Competitive Advantage: Location; and 12-Screen IMAX Multiplex

Location: M G Road City: Bangalore Status: Operational Total Mall Space: 60,482 sq.ft CAM Charges: Rs.8/sq.ft/month Rental Model: Fixed Minimum Rent No of Escalators: 2 No. of Lifts: 2 passenger lifts + 1 service lift Considerations on choice of location: Located in the primary CBD area; strategic position with access from MG Road and Brigade Road, two of the most commercially viable stretches in the city Catchment Area: Mall located in the prime shopping area of the city Average Footfall on Week Days: 4,000 Average Footfall on Weekends: 10,000 Mall Management: Outsourced Competitive Advantage: Strategic location; houses several prominent brands, etc.

Location: Mysore City: Mysore Status: Planned Operational From (Planned): 2009 Total Land Area: 60,000 sq.ft Total Mall Space: 120,000 sq.ft No. of Floors: 2B+G+4 Rental Model: Combination of Fixed Minimum Rent/ Percentage Rent/Revenue Sharing Shopping Area: Approx 70,000 sq.ft Food Court Area: Approx 15,000 sq.ft Leisure & Entertainment Area: Approx 40,000 sq.ft Space for No of 4-wheelers: 200 No of Escalators: 2 No. of Lifts: 3 Other shopping centres/malls in 6 km radius: Habitat Competitive Advantage: Close to NIE college and on the way to Airport just off Ooty Highway.

301

TENANT MIX

Anchor 1: INOX (Multiplex) Status: Under Negotiation No of Screens/ Seating Capacity: 4 Screens/1,400 Seats

WEST & CENTRAL INDIA

STATES OF WEST & CENTRAL INDIA Maharashtra, Gujarat, Madhya Pradesh, Goa

WEST & CENTRAL ZONE Population-2006 (million)

WEST ZONE ALL INDIA West as % of All-India

Consumption Expenditure 2006-07 (INR million) Rural

Rural

Urban

Total

Urban

Total

142

88

230

2,124,790

2,698,023

4,822,814

14,959

30,734

Rural 17,287

29,652

796

325

1,121

13,753,864

9,646,136

23,400,000

17.8%

27.1%

20.5%

15.4%

28.0%

20.6%

T

he four major Western & Central Indian States of Maharashtra, Gujarat, Madhya Pradesh, Goa together house 20.5 percent of country's population and account for 20.6 percent of India's private final consumption expenditure; the zone's share is

Urban

Rs.4,822.8 billion out of the India total of Rs.23,400 billion in 2006-07. The average per capita consumption expenditure for the Western states is also higher than the country average for the urban population but is significantly lower that the country average for the rural population.

Population In Lakh (2006)

Largest City

Maharashtra

1,057

Greater Mumbai

Per capita NDP as share of indian mean index 136.0

State

Av per capita Consumption Exp (INR/year)

Avg Growth Rate of Per Capita NDP % 2.33

Share of Industry Sector In NDP

Share of Services In NDP

19.6

67.3

Gujarat

554.8

Ahmedabad

142.2

3.83

30.5

48.2

Madhya Pradesh

670.9

Damoh

70.2

1.97

16.4

49.9

Goa

15.2

Panaji

254.9

6.60

34.4

57.1

GOA

G

oa, as an attractive tourist destination, has established itself among the fastest growing industrial and commercial centres in the country. It has made impressive strides in all round development, measured by socioeconomic indicators and ranks among the leading states in the country. Goa is a holidaymaker's paradise, with its beautiful blue beaches and rich cultural heritage. • Goa has one of the best social and economic infrastructure in India • Third largest producer of iron-ore • Has achieved 100 percent electrification

ECONOMIC FACT FILE Capital:

Panaji

Area:

4,000 sq.km

Population:

1.34 million (Census 2001)

Literacy:

82.3%

Sex Ratio:

960 per 1,000 males

Length of Coastline:

130 km

National Highways Length: 224 km International Airport:

Dabolim

Domestic Airports:

Marmagoa, Panaji (minor operative)

Key Industries:

Fisheries, Pharmaceuticals, Tourism and Hospitality, Mining and Mineral-based Industries

225

GUJARAT

G

ujarat, India's leading industrial state is a manufacturing powerhouse with world-class production capabilities in textiles, petrochemicals, pharmaceuticals and agro-based products. Situated on the western tip of India, Gujarat has the longest coastline in the country. The state has 41 ports that handle most of the cargo in the country, including India's only chemical handling port located at Dahej, in Bharuch district. The state has extensive road, rail and air networks. • Largest chemical industry in the country • Leading producer of cement and soda ash • Largest diamond processing industry in India • Vast mineral resources of bauxite, lignite and natural gas • Has the world's largest industrial estate grassroots refinery at Jamnagar; and Kandla, Asia's first SEZ

ECONOMIC FACT FILE Capital:

Gandhinagar

Area:

1,96,000 sq.km

Population:

50.6 million (Census 2001)

Literacy:

69%

Sex Ratio:

921 females per 1,000 males

Length of Coastline:

1,600 km (longest in India)

GSDP:

US$22 billion

GSDP over 10 years:

12.4%

National Highways Length: 1,572 km International Airport:

Ahmedabad

Domestic Airports:

Ahmedabad, Surat, Vadodara, Jamnagar

Major Ports:

Kandla, Dahej, Hazira, Mundra

Key Industries:

Chemicals, Drugs & Pharmaceuticals, Gems & Jewellery, Mines & Minerals, Textiles, Agro-based

226

MADHYA PRADESH

M

adhya Pradesh, in its present form, came into existence on November 1, 2000, following its bifurcation to create the new state of Chhattisgarh. The state's central location gives it the unique advantage of being the hub in India's national logistics network. Key industry sectors in Madhya Pradesh are cement, textiles, mining and edible oils. The cost of basic infrastructure and skilled manpower is relatively low in Madhya Pradesh. The state offers one of the lowest ratios of labour cost to sales ratio in the country. • Leading producer of cement, textiles and edible oils • First state to develop a greenfield Special Economic Zone • Track record of attracting private investment in transport infrastructure • Relatively low cost of labour and infrastructure

ECONOMIC FACT FILE Capital:

Bhopal

Area:

3,08,000 sq.km

Population:

60.3 million (Census 2001)

Literacy:

64.1%

Human Development Index:

0.394 (All India rank 12th)

NSDP:

US$9.8 billion

NSDP Growth:

2.6% (10 years)

Per Capita Income:

US$254

National Highways Length:

4,664 km

Rail Length:

5,992 km

Domestic Airports:

Bhopal, Indore

Key Industries:

Cement, Textiles, Minerals, Edible oil

Industries with growth potential:

Automobiles, Pharmaceuticals

227

MAHARASHTRA

M

aharashtra's economy is the largest among all states in India. The state is a leading producer of oil and gas, petrochemicals, pharmaceuticals and automobiles in the country. The state also has one of the country's best industrial infrastructure. Mumbai is the principal financial services centre of the country. The apex financial institution, the Reserve Bank of India (RBI), is located at Mumbai. The city houses the two largest stock exchanges, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) controlling over 95 percent of the volume in the Indian equities market. · Largest economy in the country, with a high per capita income · Most attractive investment destination in the country, accounting for 40 per cent of its exports · Most industrialised state, with strong presence of petrochemicals, automobiles, financial services, IT/ITES and textile industries · Large network of professional education institutions, presence of reputed R&D centres

ECONOMIC FACT FILE Capital:

Mumbai

Area:

3,08,000 sq.km

Population:

96.9 million (Census 2001)

Literacy:

77%

Human Development Index:

0.523 (all India 4th)

NSDP:

US$35.29 billion

NSDP Growth:

4.7% (avg annual)

Per Capita Income:

US$621

National Highways Length:

4,176 km

Rail Length:

5,450 km

International Airport:

Mumbai

Domestic Airports:

Pune, Nagpur, Aurangapur, Kolhapur

Key Industries:

Chemicals, Petrochemicals, Oil & Gas, Automobiles & Auto Components, Engineering, Financial Services, IT & ITES, Textiles

Industry with growth potential: Tourism, health & entertainment, biotechnology

228

RETAIL REAL ESTATE IN WEST & CENTRAL INDIA The total supply of shopping centre space in Western India by end-2007 will be 20.38 million sq.ft from 75 operational malls, which will be an increase of nearly 75 percent over the space available in end-2006. However, till August 2007 only 47 malls were operational with 13.1 million square feet of built-up floor space and a good 33 projects are in the completion stage hoping to make it by the year-end. According to IMAGES F&R Research data, the rate of growth in shopping centre space in the Western region, which was up to 2006 largely confined to Mumbai and its suburbs, is now declining. From nearly 250 percent growth in mall space in 2005, it declined to a 118 percent growth in 2006 and will settle to around 75 percent growth in 2007. But with the increased base year after year, the current growth rate is exceedingly strong. The number of operational malls in the west zone will increase from 75 in 2007 to 137 in year 2011. A good many of the newer developments are mega projects with about 10 lakh square feet and above mall space and such projects are taking roots in the tier-II cities as well. From 20.38 million square feet in 2007, mall space will more than double to nearly 55 million square feet in 2011. Kurla (for September 2009) and another from DLF Retail Developers at NTC Mills in Lower Parel. There are also two 10 lakh plus sq.ft projects from the Runwal Group (Ghatkopar) and Nirmal Lifestyle (Mulund West).

Mumbai's Crossroad Mall from Piramal Holdings was among the earliest of the malls in India. Nirmal Lifestyle at Mulund, with 4.5 lakh square feet of space, came next followed by the R Mall from the Runwal Group. The next landmark development was the Inorbit mall at Malad followed by the nine lakh sq.ft Phoenix at Lower Parel in 2005.

The average ratio of land area to mall space for Mumbai is as 1 : 1.79 while for Pune it is 1 : 1.5 ; for Ahmedabad it is higher at 1 : 2.95 ; in Nagpur it is 1 : 2.61 and the land to mall space ratio for Indore is 1 : 2.84 while the average for the other cities is 1 :

Among the mega projects under construction are two 25 lakh plus sq.ft malls -- one from Kshitij Investments at LBS Marg in

West Zone: Growth in Mall Space 60000 9017

Space in '000sq.ft

50000 3971 40000 14061 30000 7281

41726

20000 8710 10000 0

150

453

end-2002

603

3812

950 2004

2005

27665 20384

6310

11675

5365

1553

45697

2006

2007

Base

2008*

Increase 229

2009*

2010*

2011 P

Greater Mumbai

end-2000

2002

2004

2005

2006

2007

2008*

2009*

2010*

Number of Malls

1

2

5

11

30

53

56

62

68

77

150

603

1553

3323

8433

13715

15175

21713

22503

27249

Total Mall Space ('000 sq.ft)

2011 P

Total Land Area ('000 sq.ft)

57

336

866

1853

4703

7648

8463

12108

12549

15195

Total GLA ('000 sq.ft)

108

394

1014

2171

5509

8960

9914

14184

14700

17801

end-2000

2002

2004

2005

2006

2007

2008*

2009*

2010*

2011 P

Pune Number of Malls Total Mall Space ('000 sq.ft)

1

2

4

7

8

10

12

450

600

1350

2267

2667

3668

4154

Total Land Area ('000 sq.ft)

348

400

899

1510

1776

2443

2750

Total GLA ('000 sq.ft)

352

469

1056

1773

2086

2869

3250

2005

2006

2007

2008*

2009*

2010*

2011 P

1

2

5

5

6

6

8

255

505

1600

1600

2664

2664

3400

Ahmedabad

end-2000

2002

2004

Number of Malls Total Mall Space ('000 sq.ft) Total Land Area ('000 sq.ft)

86

171

541

541

901

901

1150

Total GLA ('000 sq.ft)

152

302

956

956

1591

1591

2031

2005

2006

2007

2008*

2009*

2010*

2011 P

1

3

5

6

6

8

9

200

600

1540

2040

2040

2820

3332

Nagpur

end-2000

2002

2004

Number of Malls Total Mall Space ('000 sq.ft) Total Land Area ('000 sq.ft)

121

293

590

781

781

1056

1236

Total GLA ('000 sq.ft)

133

398

1022

1353

1353

1871

2211

2005

2006

2007

2008*

2009*

2010*

2011 P

2

2

2

5

7

7

8

710

710

710

1626

4484

4484

5231

Indore

end-2000

2002

2004

Number of Malls Total Mall Space ('000 sq.ft) Total Land Area ('000 sq.ft)

250

250

250

573

1579

1579

1842

Total GLA ('000 sq.ft)

585

585

585

1387

3825

3825

4471

2005

2006

2007

2008*

2009*

2010*

2011 P

1

3

6

13

16

17

22

427

827

1469

4957

8158

9558

11347

WEST - Other Centres

end-2000

2002

2004

Number of Malls Total Mall Space ('000 sq.ft) Total Land Area ('000 sq.ft)

263

410

729

2459

4047

4741

5611

Total GLA ('000 sq.ft)

337

543

964

3255

5357

6276

7432 2011 P

WEST ZONE Number of Malls Total Mall Space ('000 sq.ft)

end-2000

2002

2004

2005

2006

2007

2008*

2009*

2010*

1

2

5

17

42

75

92

105

116

137

150

603

1553

5365

11675

20384

27665

41726

45697

54714

Total Land Area ('000 sq.ft)

57

336

866

2921

6226

10657

14326

21192

23268

27786

Total GLA ('000 sq.ft)

108

394

1014

3729

7806

13543

18638

28397

31133

37195

2.02. Malls in Mumbai and Pune thus have more open un-built space as compared to those in the other cities.

doubles from four percent to eight percent and Nagpur increases its share from six percent to eight percent.

The average ratio as between mall space and gross leasable area gives an indication of the size of atrium and free movement space within the mall. Here again, for Mumbai malls the ration of mall space to GLA is as 1 : 0.65 as compared to 1 : 0.78 in Pune, 1 : 0.597 in Ahmedabad, 1: 0.66 in Nagpur, 1 : 0.85 in Indore and 1 : 0.66 is the average in the rest of the western cities.

MUMBAI

Till 2006 the share of Mumbai in the total mall space available in the western zone was a dominating 73 percent -- the domination continues but the share is to get reduced to 67 percent by end-2007. Major gainers are Pune, whose share will increase form five percent a year ago to seven percent, while Ahmedabad's share

Current Scenario Rising consumerism and increasing purchasing power has led to a significant growth of the organised retail market in Mumbai. However, South Mumbai, one of the most enviable addresses in the country, has lost some of its sheen. Burdened infrastructure, lack of space for new construction and high real estate costs has limited retail development in this part of the city. Lured by easy availability of land and lower real estate prices, families and businesses alike have moved to the suburbs. This has led to immense growth of the retail 230

West & Central: 2007 Distribution of Mall Space (Total Space: 20.4 million sq.ft by end-2007)

West & Central: 2006 Distribution of Mall Space (Total Spece: 11.7 million sq.ft)

Pune 7% Ahmedabad 8%

Pune 5% Ahmedabad 4%

Nagpur 8%

Nagpur 5%

Indore 3%

Indore 6%

West-Other Centres 7%

West-Other Centres 7%

Greater Mumbai 73%

Greater Mumbai 67%

MALL PROJECTS - WEST & CENTRAL ZONE City

Developer

Mall Name

Location

Total Land Area (sq.ft)

Gross

Total Mall Leasable Space (sq.ft) Area (sq.ft)

Status

Operational From

Mumbai

Ajmeras

Citi Mall

Andheri (W)

100,000

Operational

2007

Mumbai

Akruti Nirman Ltd

Akruti Mall

Andheri (E)

525,000

Operational

2006

250,000

Operational

2007

35,000

Announced

2009

Mumbai

Alif Enterprises

Atria Mall

Worli

Mumbai

Anil K. Agarwal

BN Agarwal Complex

Vile Parle (E)

Mumbai

Balaji Builders & Developers, Siddhi Group

Lake City Mall

Thane

550,000

Operational

2006-Jan

Mumbai

Cable

North Point

Borivali

200,000

Construction

2007

Mumbai

Devashish

The Eastern Mall

Malad (E)

Mumbai

Dharmesh Jain

Tulip Arcade

Juhu

45,000

Construction

2007

200,000

Construction

2007

Mumbai

Dheeraj

Dheeraj

Kandivili

50,000

Announced

2010

Mumbai

Dheeraj & Ravi Group

The Mall

Malad (W)

70,000

Operational

2006

Mumbai

Dheeraj Builders

Dheeraj Heritage

Santa Cruz

Mumbai

DLF Retail Developers Limited

Mumbai Mills

NTC Mills , Lower Parel

60,000 2,615,000

1,815,000 44,114

Mumbai

Essel Group

Fun Republic

Andheri (W)

125,000

Mumbai

Essel Group

Fun Republic

Chembur

120,000

Mumbai

Ever Shine

Evershine Mall

Kandivili (E)

Mumbai

Evershine Group

Evershine mall

Link Road, Malad

Mumbai

Fashion Lifestyles (I) Ltd, Benzer Group

Centre One

Vashi

Mumbai

Gayatri Homes-Siddhi Group

Little World Mall

Navi Mumbai

Mumbai

Growels 101

Growels 101

Akurli Road, Kandivali (E)

Mumbai

Hiranandani

Galleria

Powai

60,000 380,000 150,000 57,000 425,000

120,000

150,000 700,000

500,000

200,000

Planned

2010

Construction

2009

Operational

2006

Planned

2009

Construction

2007

Announced

2010

Operational

2005

Construction

2007-Oct

Construction

2008-Apr

Operational

2006

Mumbai

Huma Exhibitors

Huma Mall

Mumbai

100,000

Operational

2005-Jul

Mumbai

Hyatt Group

Grand Hyatt

Kalina

200,000

Operational

2006 2004-Feb

Mumbai

Inorbit Malls (India) Pvt Ltd

Inorbit Mall

Malad

Mumbai

Inorbit Malls (India) Pvt Ltd

Inorbit Mall

Vashi , Navi Mumbai

329,602

500,000

365,000

Operational

852,331

356,108

Construction

Mumbai

K Raheja Constructions

Super Mall

Link Road, Andheri

200,000

Operational

2006

Mumbai

Kalpataru Group

Kalpataru Mall

Eastern Express, Thane

300,000

Planned

2010

Mumbai

Kanakia

Cine Vision

Thane

250,000

Operational

2007

Mumbai

Kanakia

Cine Wonder

Gorbunder Road

100,000

Operational

2007

Mumbai

Kanakia

Kanakia Mall

Mira Road

45,000

Planned

2009

Mumbai

Karnavat Group

Karnavat Mall

Eastern Express

70,000

Operational

2006

Mumbai

Kohinoor Planet Constructions

Kohinoor City Mall

Near Bandra Kurla Complex

Construction

2007

400,000

800,000

300,000

Mumbai

Krushal Dev.

Destination

Ghatkopar

150,000

Operational

2007

Mumbai

Kshitij Investment Advisory Co Ltd

Orchid City Centre

Mumbai Central

210,000

Operational

2007

Mumbai

Kshitij Investment Advisory Co Ltd

Milan Mall

Milan Subway Road

Mumbai

Kshitij Investment Advisory Co Ltd

Mumbai-Kurla

LBS Marg, Kurla

231

92,021 2,600,000

Operational

2007

Planned

2009-Sep

MALL PROJECTS - WEST & CENTRAL ZONE City

Developer

Mall Name

Location

Total Land Area (sq.ft)

Gross

Total Mall Leasable Space (sq.ft) Area (sq.ft)

Status

Mumbai

KSL Realty and Infrastructure Ltd

K.Lifestyle

Mumbai (Lower Parel)

20,000

Operational

Mumbai

KSL Realty and Infrastructure Ltd

K.Lifestyle

Mumbai (Fort)

20,000

Construction

Mumbai

Landmark Builders

The Hub

Goregaon (E)

200,000

Mumbai

Landmark Group

Suburbia

Bandra

100,000 400,000

Mumbai

Maker Group

Bandra Drive in

Bandra

Mumbai

N Kumar Group

Poonam Plaza

Andheri

Mumbai

Neelkanth Group

Hi ! Life

Santacruz (West)

Mumbai

Nirmal Lifestyle Group

Modella

Mulund / Thane

125,000

Operational

2007 2006

Construction

2007

Planned 70,000

210,000

140,000

200,000

Operational

Nirmal Lifestyle Ltd.

Nirmal Lifestyle Phase - I

Mulund (W)

452,711

Operational

Nirmal Lifestyle Ltd.

Nirmal Lifestyle Phase - II

Mulund (W)

766,606

Construction

Mumbai

Nirmal Lifestyle Ltd.

Nirmal Lifestyle Phase - III

Mulund (W)

939,568

Mumbai

Nirmal Lifestyle Ltd.

Nirmal Lifestyle Phase - IV

Mulund (W)

1,400,000

Oberoi Constructions Pvt Ltd

Oberoi Mall

Goregaon (E)

Phoenix

High street Phoenix-3 phases

Lower Parel

2002

Construction Planned

400,000 958,320

2006-Jan

Planned

Mumbai

Mumbai

2005

Operational

Mumbai

Mumbai

Operational From

900,000

500,000

Operational

2006-Jun

Operational

2005

Mumbai

Piramal Holdings Ltd

Crossroad

Mumbai

56,871

150,000

108,000

Operational

1999

Mumbai

Piramal Holdings Ltd

Crossroad2

Mumbai

61,000

100,000

85,000

Operational

2004-Nov

Operational

2006-Jan

175,000

110,000

Construction

2007-Oct

235,000

195,000

Mumbai

Prime Developers

Prime Mall

Vile Parle (W)

Mumbai

Rachana-Astra Constructions Pvt Ltd

Tech Mall

Goregaon (West)

Mumbai

Raviraj Group

Raviraj Mall

Mumbai

Mumbai

RNA Group

RNA Millennium

Kandivili (W)

130,000 44,692 136,702

100,000

Mumbai

Royal Palms India Pvt Ltd

Royal Palms

Goregaon (East)

300,000

Mumbai

S Kumar's Group

Landmarc Citi

Lower Parel

200,000

150,000

Operational

2007

Construction

2007

Construction

2007-Nov

Planned

Mumbai

Satra Property Developers

Prime Mall

Vileparle-W

130,000

100,000

Operational

2006-Mar

Mumbai

Satra Property Developers Pvt Ltd

Dream - The Mall

Borivili-W

450,000

300,000

Construction

2007

Mumbai

Satra Property Developers Pvt Ltd

Dream - The Mall

Vashi

600,000

500,000

Construction

2007

Mumbai

Satra Property Developers Pvt Ltd

The Dream Mall

Bhandup-W

800,000

600,000

Operational

2006-Dec

Operational

2006-Sep

Mumbai

Shree Laxmi Developers

Sej Mall

Malad (W)

Mumbai

Silver Group

Gold County

Santacruz

60,000

100,000

Planned

Mumbai

Silver Moon Constrn, Dudhwala Group

Mega Mall

New Link Road

500,000

Mumbai

Thakur Group

Thakur Mall

Kandivili (E)

150,000

360,000

Operational

2006-Apr

Construction

2007

Mumbai

The Runwal Group

R Mall-Thane

Godhbunder Road

260,000

Construction

2008

Mumbai

The Runwal Group

R City Centre

Ghatkopar (West)

1,122,421

Construction

2009

Mumbai

The Runwal Group

R Mall-Mulland

L.B.S. Road, Mulund

Mumbai

The Runwal Group

R Mall -Odeon

Ghatkopar (East)

350,000

Operational

2003-Mar

65,659

Construction

2007-Sep

Mumbai

Vijay Group

Kemps Shop

Kemps Corner

150,000

Operational

2005

Mumbai

Vinod Goenka

Dynamix

Juhu (Near Chandan)

100,000

Operational

2006

Mumbai

Vinod Goenka

Milan Theatre

Santa Cruz (W)

Mumbai

Wadhwa Group

Raghu Leela Mall

Kandivili (W)

100,000 90,000

450,000

375,000

Operational

2006

Operational

2005

Mumbai

Wadhwa Group

Raghu Leela Mall

Vashi

600,000

Operational

2006

Mumbai

Wadhwa Group

Raghu Leela

Vashi

500,000

Planned

2008

PUNE Pune

Deepak Fertilisers and Petrochemicals Corp Ltd

Ishanya

Airport Road

Pune

Inorbit Malls (India) Pvt Ltd

Inorbit Mall

Pune-Nagar Rd,Vadgaon Sheri l

Pune

Kshitij Investment Advisory Co Ltd

Pune- Hadapsar

Pune, Hadapsar

Pune

Kumar Builders

KPCT

Fatima Nagar -Wanowrie Road

473,000 444,553

348,480

550,000

520,000

Construction

2008

901,045

614,946

Planned

2010

217,000

Planned

2008-Jan

450,000

Operational

2005

Pune

Kumar Properties - Lalit Jain Group

Fun n Shop

Fatima Nagar

150,000

Operational

2006

Pune

Kumar Properties - Lalit Jain Group

44 Sinew Hills

Karve-Paud Rd

300,000

Operational

2007

Pune

Kumar Properties - Lalit Jain Group

KK Market

N.A.

450,000

Operational Part

2007

Pune

Kumar Properties - Lalit Jain Group

Fun n Fair

N.A.

150,000

Planned

2008

Pune

Kumar Properties - Lalit Jain Group

Kumar Ashok

N.A.

400,000

Planned

2009

Pune

Kumar Properties - Lalit Jain Group

Fun n Food

N.A.

100,000

Planned

2010

232

MALL PROJECTS - WEST & CENTRAL ZONE City

Developer

Location

Mall Name

Gross

Total Land Area (sq.ft)

Total Mall Leasable Space (sq.ft) Area (sq.ft)

117,000

425,000

Status

Operational From

AHMEDABAD Ahmedabad

Essel Group

Fun Republic

Ahmedabad

Ahmedabad

Himalaya Mall

Himalaya Mall

Drive In road

255,085 270,000

Operational

2005

Operational

2007-Apr

Ahmedabad

JP Infrastructure Pvt. Ltd

Iscon Mega Mall

SG Highway

254,673

450,000

348,668

Operational

2007-Jul

Ahmedabad

JP Infrastructure Pvt. Ltd

Iscon Platinum Mega Mall

SP Ring Road

303,590

1,063,764

553,943

Planned

2009-Oct

Planned

2007-Nov

65,000

250,000

135,000

Operational

2006

Ahmedabad

Kshitij Investment Advisory Co Ltd

Kshitij Mall

Satellite Road

Ahmedabad

Shyam Buildcon Pvt Ltd

Star Mall

Ahmedabad

220,000

NAGPUR Nagpur

Indo Pacific Software & Entertainment Ltd.

Poonam Mall

Wardhaman Nagar

Nagpur

Indo Pacific Software & Entertainment Ltd.

Poonam Mall

VIP Road

Nagpur

Indo Pacific Software & Entertainment Ltd.

Poonam Mall

Khamla

Nagpur

KSL Realty and Infrastructure Ltd

Empress City

Nagpur

100,000

300,000

200,000

Operational

2006-Aug

70,000

240,000

140,000

Construction

2007-Oct

500,000

350,000

150,000

700,000

Construction

2008-Nov

Construction

2007-Dec

Nagpur

N Kumar Group

Poonam City Pulse

Nagpur

120,680

200,000

Operational

2005

Nagpur

N Kumar Group

Poonam Mall

Nagpur

72,527

100,000

Operational

2006

INDORE Indore

EWDPL India Pvt Ltd

Treasure Island

M.G. Road

Indore

EWDPL India Pvt Ltd

Treasure Island

Opp RNT Marg

100,000

410,000

375,000

Operational

2005-Dec

311,000

260,000

Construction

2008-Jun

Indore

EWDPL India Pvt Ltd

Treasure Island

MR-10, Indore

1,835,000

1,556,500

Construction

2009-Jun

Indore

EWDPL India Pvt Ltd

Treasure Island

Annapurna

1,023,000

908,000

Construction

2009-Jun

Indore

Kshitij Investment Advisory Co Ltd

Kshitij Mall

RNT Marg, Close to MG Road

Planned

2008-Apr

Indore

M2K Entertainment Pvt. Ltd.

M2K Mega Mall

AB Road

Indore

Mangal Resources (P) Ltd

Mangal City

INDORE

255,000 350,000 150,000

300,000

210,000

Construction

2008-Mar

Operational

2005-Dec

OTHER CENTRES - WEST ZONE Anand

Himalaya Mall

Himalaya Mall

Anand

195,000

450,000

400,000

Construction

2008-Dec

Aurangabad

Prozone Enterprises Pvt. Ltd

Prozone Golden Mall

Aurangabad

862,110

2,169,723

1,064,972

Construction

2009-Mar

180,249

493,673

Baroda

Kshitij Investment Advisory Co Ltd

Kshitij Mall

Baroda-Sarabhai Circle

Baroda

JP Infrastructure Pvt. Ltd

Iscon Mega Mall

Baroda

Bhavnagar

Himalaya Mall

Himalaya Mall

Bhavnagar

Bhopal

Collage Group

Viva Collage

Bhopal

Gwalior

ARG Group

Deendayal City Mall

Gwalior

Kolhapur

KSL Realty and Infrastructure Ltd

Deccan City

Kolhapur

140,475 304,030

Operational

2007-Aug

Planned

2008-Dec

240,000

625,000

575,000

Construction

2008-Dec

1,306,800

1,400,000

900,000

Planned

2010-Oct

85,388

300,000

210,000

Operational

2006-Dec

1,000,000

400,000

Planned

2008-Dec

Mehsana

Himalaya Mall

Himalaya Mall

Mehsana

195,000

450,000

400,000

Construction

2008-Dec

Nanded

EWDPL India Pvt Ltd

Treasure Island

Nanded

120,000

234,000

184,000

Construction

2008-Nov

Nashik

City Center Mall Nashik Pvt Ltd

Nashik City Center, Lawate Nagar

Nashik

263,287

427,070

336,792

Operational

2005

Operational

2006

167,474

Construction

2007-Oct

Nashik

Suyojit Infrastructure Ltd

The Ozone Mall

Nashik

Rajkot

JP Infrastructure Pvt. Ltd

Iscon Mega Mall

Rajkot

100,000 87,116

176,295

Surat

JP Infrastructure Pvt. Ltd

Iscon Mall

Surat

123,709

325,000

233,777

Operational

2007-May

Surat

JP Infrastructure Pvt. Ltd

Iscon Mega Mall

Surat

216,979

724,583

538,704

Construction

2009-Jan

98,200

235,510

202,000

Ujjain

EWDPL India Pvt Ltd

Treasure Island

Ujjain

Vadodara

EWDPL India Pvt Ltd

Treasure Island

Vadodara

sector in the suburban locations. Several malls have sprung up in the suburbs and many more are in the pipeline, so much so that experts apprehend a situation of mall over-supply in the coming times. As on date, Greater Mumbai boasts of 33 operational malls, totaling to about 9.12 mn.sq.ft. Notably, more than 50% of the malls adding up to a cumulative retail stock of approximately 4.45 mn.sq.ft., are located in

307,000

Construction

2008-Sep

Construction

2009-Mar

the Western Suburbs. The new generation of consumers is more discerning towards brands and their demand is drawing many retailers to the Indian markets. Around 23 new malls will be added to MMR by end-2008 and this will translate to approximately 15.18 mn.sq.ft. of new retail space.

233

Island City Crossroads at Tardeo, CR2 at Nariman Point and Highstreet Phoenix at Lower Parel continue to enjoy their dominant status in organised retail in the Island City, though they somewhat pale in comparison to their glitzy and spacious counterparts only a few miles away in the suburbs. The sale of mill land in the Central Mumbai region is likely to create a considerable supply of land for residential and commercial development. This would create the requisite catchment as well as an opportunity for future retail developments. Central Suburbs and Thane Over the last 18-24 months, a number of malls have mushroomed in the Central Suburbs and Thane belt. This has been aided by the availability of land and a rapidly growing population. The erstwhile industrial plots of defunct factories in Vikhroli, Bhandup, Mulund and Thane micro-markets have been converted into commercial developments by promoters. Like in other locations, most of the malls in the Central Suburbs like R-Mall, Nirmal Lifestyle at

234

Mulund and Huma Adlabs at Kanjurmarg are Family Entertainment Centers (FECs) and integrate a multiplex with the retail component. Increasing population with high disposable income and purchasing power in their catchment areas has led to the success of these malls. Thane has emerged as a popular destination for malls, both from the developers and the consumers perspective. The rise in population in this developing suburb has led to increased footfalls in the existing malls and created demand for new ones. Thane currently boasts of about seven operational malls, five more are in various stages of construction. These will infuse 1.7 mn.sq.ft. of new retail space in this micro-market.

an or iC ree k

Dahisar

Borivali

M

Malad Marve Beach

In the recent years, Navi Mumbai has become an important IT/ITES hub. Software parks by CIDCO, MIDC, Haware, RCL and Rahejas have given it the requisite image of being an IT destination. This coupled with the 35,000 acres Reliance SEZ (size likely to be curtailed as a result of new policy announcements) coming up in the region and firming up of plans of making the second international airport, has transformed Navi Mumbai into an important real estate micromarket.

Aarey Jogeshvari Versova Beach Andheri

Ville Parle

Juhu Beach

Juhu

ARABIAN SEA

The Western Suburbs from Bandra to Borivali have witnessed a spurt of development in the residential, office and retail segments. A number of malls have come up along the Link Road and Western Express Highway. Some of the malls have been developed adjacent to and as part of large residential projects and thus have an ensured customer base.

Navi Mumbai

Goregaon

Madh Beach

Western Suburbs

According to Knight Frank Research, approximately 6.4 mn.sq.ft. of new retail space will be added in the Western Suburbs and this will account for 37% of the new retail space in MMR by 2008.

Kandivli

Erangal Beach

Central suburbs, which currently has 16% of the total retail space in Mumbai will see an infusion of close to around 6.5 mn.sq.ft. of new retail space by 2008.

New retail developments (malls and multiplexes) are being planned in existing retail destinations of Bandra and Andheri and also in locations like Kandivali, Borivali and Vasai. Close to 22 malls with an average size of 250,000-300,000 sq.ft. are coming up in this micro-market.

N MUMBAI

Manori Beach

In recent times, a number of Grade-A residential projects have come up in the Central Suburbs belt. This has led to a number of malls being constructed and planned here and some of the largest malls of Mumbai are being developed on this stretch. These includes R-City Centre (1,122,000 sq.ft.) at Ghatkopar, Dreams Mall (600,000 sq.ft.) at Vashi.

Santa Cruz Khar Road

Khar Bandra

Bandra Point

Dharavi

Chunabhatti Sion

Mahim Guru Tegbahadur Nagar Matunga King’s Circle Kolwada Road Matunga Dadar Dadar Wadala Worli

Mahim Bay

Prabhadevi Elphiunstone Road

Various mid to high-end residential projects are underway in Navi Mumbai and this will provide the required catchment for retail development. The potential target market, apart from the existing residential population arises from close to 45,000 IT/ITES industry workforce traveling to Navi Mumbai daily. This segment forms a large consumer base for the retail industry.

Govandi

Trombay

Parel Sewn

Lower Parel

Curry Road Cotton Green Chinch Pokli Byculla Reay Road Mahalakshmi Mumbai Mazagaon Central Dockyard Grant Road Cumbala Tardeo Road HillGirgaum MandviSandhurst Thakurdwar Road Chami Road Kalbadev Masjid Malabar Point

Butcher Island

By the end of 2008, it is expected that Navi Mumbai will have an addition of about 2.1 mn.sq.ft. of new retail space with malls like Inorbit (852,331 sq.ft.) in Vashi

Elephanta Island

Outlook

Chowpatty Beach

Chatrapati Shivaji Terminus (VT) Back Bay Church Gate Fort Nariman Point Gateway of India Colaba

Retailing in Mumbai has undergone a considerable shift and a more radical change is foreseen in the near future. Organised

Road Railway Line Beach

235

MUMBAI RETAIL VALUES: (Rs per ft2 pm)/ Rs per ft2

MALLS

2004

Micro Market

2005 Capital Values 24545

Average Rental 260

May-07

Capital Values 19500

Lower Parel

160

16000

225

24545

265

31800

325

33000

Malad

65

6500

110

12000

170

20400

190

22000

Link Road, Andheri (W)

135

13500

160

17454

190

22800

220

28000

Mulund

80

8000

120

13090

145

17400

200

22000

Tardeo

Average Rental 225

2006

Average Rental 195

Capital Values 31200

Average Rental 280

Capital Values 34000

HIGH STREETS 2004

Micro Market

Linking Road

Average Rental 290

2005 Capital Values 29000

Average Rental 370

2006 Capital Values 40363

Average Rental 550

May-07 Capital Values 60000

Average Rental 575

Capital Values 62500

Colaba

180

18000

225

24545

270

32400

310

35000

Lokhandwala

135

13500

160

17454

210

25200

245

28000

Breach Candy

210

22000

235

34000

320

45000

480

50000

retailing has grown manifold and has become the preferred retail format. The success of malls like Inorbit and Nirmal Lifestyle has shaken developers out of their cautious wait-andwatch approach and has encouraged new mall developments. Mumbai has the second highest density of malls in the country, just behind NCR.

date, the Western Suburbs have led the way, both in terms of mall development and retail space availability.

PUNE Current Scenario Pune has been experiencing a retail boom since the last 2-3 years. In 2005, approximately 1.25 mn.sq.ft. of new retail space was added to Pune real estate market. This led the current retail stock of the city to grow to 3.5 mn.sq.ft. Growth in commercial activities and the migrant population of young, white-collar workers has been the chief driver of real estate growth in the city.

Luxury retail and lifestyle stores that require large spaces and an exquisite ambience have so far been restricted to Mumbai's five star hotels, but this may soon stand to change. They may be built as “appendages” to mid segment malls or else as standalone shopping destinations which provide an “experience” complete with a crèche, seating area and tea/coffee lounge aimed at building brand loyalty. Lured by the high propensity to spend, many high-end brands are lined up to enter the market in the near future.

With 23 mall projects in the pipeline, the city is expected to have cumulative retail stock of approximately 4.5 mn.sq.ft. by end-2006 and infusion of another 4.2 mn.sq.ft. of new retail space over the next two years. The total retail stock in Pune by end-2008 is estimated to be about 8.7 mn.sq.ft.

Hypermarkets like Shoprite and Hypercity have been successful formats and have emerged as major crowd pullers. The popularity of the organised retail formats in the Island City and the suburbs has encouraged developers to replicate the same in the extended suburbs of Dahisar, Vasai and even Kalyan.

The city has been witnessing an interesting trend of retail space being created in multiplex developments. There is also a reverse trend of movie screens being located in large format mall developments. Another noticeable trend in the retail format is the advent of specialty malls or niche malls. 'Ishanya Mall' developed by Pune-based Deepak Fertilizers and Petrochemicals Corporation Ltd., would be a project dedicated exclusively to 'interiors and exteriors'.

Most of the large format malls have opted for leasing out of retail space resulting in effective mall management and ensuring higher returns in the long term. Sale of mall space may result in an inappropriate tenant mix and could hamper the growth prospects of a mall in the long term.

Central Locations

In an interesting turn of events, it is expected that by 2008 the Central Suburbs will overtake the Western Suburbs in terms of mall space as larger malls are coming up in those locations. Till

The locations where retail developments have flourished traditionally are the highstreets of M.G. Road, F.C. Road and J.M. 236

Road in the central part of the city. These markets have a unique mix of local brands along with national and international retailers - both of which are known to generate substantial revenues along with heavy footfalls.

shifting to suburban and peripheral locations of Aundh, Hadapsar, Karve Road, Kondhwa and Yerawada-Kalyani Nagar. The Mumbai-based Piramyds Group is coming up with their Crossroads Mall

However, the development of malls in the neighbouring locations is anticipated to affect the footfalls of these traditional highstreets. A case in point is the presence of Magnum Mall (175,000 sq.ft.) in the Camp area which has created a 'pull effect' on the consumer stronghold of M.G. Road.

(350,000 sq.ft.) at Yerwada-Kalyani Nagar and this will be operational by end-2007. Another noteworthy mall development, Sudev Axis (350,000 sq.ft.) would be operational by 2007. This micro-market is expected to witness a number of large-scale mall developments, amounting to approximately 2.3 mn.sq.ft. of new retail space by 2008.

At present, organised retail by way of mall development in Pune is concentrated in the up-market highincome central locations of Camp and Bund Garden Road. Developer and retailers alike have been successful in their organised retail ventures in these micro-markets, more so due to the proximity of up-market residential catchment of these locations. Nucleus Mall (200,000 sq.ft.) in Camp, which became operational in 2005, had Shoppers Stop take up space for its second outlet in the city. Another largescale project, Pune Central (130,000 sq.ft.), a mall by Pantaloon Retail on Bund Garden Road, has Food Bazaar as its anchor tenant and caters to the domestic needs of the bulk of the resident population of central Pune. These retail markets in the central locations of the city currently house approximately 1.78 mn.sq.ft of retail stock. A new mall, Fun n Travel (100,000 sq.ft.) has been planned in the Bund Garden region while two malls, Ascent (93,654 sq.ft.) and One Centre Port (250,000 sq.ft.) are coming up on University Road. These developments are slated to enter the market by 2007. Suburban and Peripheral Locations While the retail markets in Camp and Bund Garden Road continue to mature, retail sector activity is increasingly

Together with the above, peripheral locations like Nagar Road and Kharadi are also developing up as IT hubs, thereby increasing the demand for ancillary services like quality retail space. Locations like Karve Road and Satara Road in the south-western part of the city, are all witnessing new mall developments. Among the important developments, 44 Sinew Hills (165,000 sq.ft.) and Kakde City mall (600,000 sq.ft.) are scheduled to be operational by 2007 and 2008 respectively. Outlook The retail sector in Pune has prospered and the retail space development in the city is on the rise. Organised retailing is increasingly shifting towards the newer residential pockets of Bavdhan, Hinjewadi, Baner, etc. and this trend is likely to continue. Moreover, the Yerwada-Kalyani Nagar region is anticipated to turn into an important retail hub of the city. With around eight proposed malls, the region would contribute to approximately 45% of the total new retail space by end-2008. The past year has seen a drastic transformation in the brands/retail occupier typology in Pune. Well-known national brands have not only entered the market but have also expanded with

237

multiple outlets in the city. This maybe attributed to the changing demographic structure of the city. The 'R.K. SwamyBBDO Guide to Urban Markets, 2005' has ranked Pune as the eighth richest city in the country. About 30% of the households in the city earn an annual income of over Rs. 140,000, while 26% of the population spends between Rs. 50,000 and Rs. 100,000 on various goods and services. Given the size of the Pune retail market, the increase in population, the rise in income and with optimistic employment outlook, the amount of new retail development should be readily absorbed. NASHIK Nashik is an important commercial and religious centre in the state and has a population of 4.9 million. It has a significant presence of automobile and auto-components, engineering and grape processing industries. The major players in Nashik include Mahindra and Mahindra, Schneider Electric, Siemens and Crompton Greaves. It has seven industrial areas facilitating the industrial growth in the region, with a focus on engineering and automobiles. Nashik is a potential destination for engineering, food processing and biotechnology industries in the state.

NAGPUR Nagpur has a population of approximately 4.5 million. It has excellent road and rail connectivity to all parts of the country. Its unique location in the Indian sub continent makes it a viable passenger and cargo hub. It is a growing industrial centre and has 10 industrial areas. It is home to reputed companies including Indo-Rama Synthetics, Electrolux and Voltas. It is a potential destination for food processing, chemicals and engineering industries.

(WEST)

MALL PROFILE

Arg Group

Balaji Builders & Developers

Collage Group

DINDAYAL CITY MALL

LAKE CITY MALL

VIVA COLLAGE

Location: MLB Road City: Gwalior Total Land Area: 85,388 sq.ft Total Mall Space: 3,00,000 sq.ft Gross Leasable Area (GLA): 2,10,000 sq.ft Shopping Area: 1,59,000 sq.ft Atrium Area: 8,000 sq.ft Food Court Area: 10,000 sq.ft Leisure & Entertainment Area: 32,000 sq.ft No of Levels: Basement+ Ground+2 No od Escalators: 4 No of Lifts: 8 Creche & Kids Zone Area: 1,000 sq.ft Parking Space: 300 cars Catchment Area: Gwalior,Bhind, Murena, Dabra & Shivpuri

City: Thane Location: Kapurbawadi Circle, Near Ashapura Temple, Old Bhiwandi Road, Thane (W) Total Mall Area: 5,50,000 sq.ft. Parking capacity: Free car parking for 1000 cars Catchment: Bhiwandi, Mulund, Thane (East and West), Virar, Vasai, Dahisar and Mira Road Frontage: 1200 sq.ft. Positioning/USP: Lake City Mall banks on the interesting environment it has in Thane, known as 'the city of lakes'. The mall also has 28ft. wide lobby and three atriums for events at the ground level. Anchors & Confirmed Tenants: Big Bazaar, one of the anchors is already open.Around forty brands have already confirmed to join. Raymond, Reid & Taylor, Spykar, Pepe Jeans, Provogue, Café Bollywood, Nike, Lee Cooper, 9 to 9, 4 to 14, Samsonite, Planet Fashion and Archies are some of them who are going to occupy Gr.+ 3 level of shopping space. Centrally air conditioned, the mall has 5-screen multiplex by Fame Cinema and Time Zone for entertainment. Anchor tenants: Pantaloons, Big Bazaar and Mc Donald's

Location: Kolar with Hoshangabad Road, Bye Pass City: Bhopal Status: Planning Planned Launch: October, 2010 Total Land Area: 13,06,800 sq.ft Total Mall Space: 14,00,000 sq.ft No. of Floors: 4 (ground + 3) Gross Leasable Area: 9,00,000 sq.ft Rental Model: Fixed Rent Shopping Area : 7,20,000 sq.ft. Food Court Area: 50,000 sq.ft Leisure/Entertainment: 1,00,000 sq.ft Services Area: 40,000 sq.ft Parking Area: 4,35,600 sq.ft Space for No. of 4-wheelers: 1,500 Space for No. of 2-wheelers: 6,000 No. of Lifts: 8 passenger + 6 service Other shopping centres/malls in 6 km radius: 6 Mall Management: In-house

238

TENANT MIX

Anchor 1: Hypermarket Area: 1,00,000 sq.ft Anchor 2: Anchor to be decided Area: 1,00,000 sft. Anchor 3: Food Court Area: 25,000 sq.ft Anchor 4: Multiplex Area: 40,000 sq.ft

(WEST)

MALL PROFILE EWDPL India Pvt Ltd

Dlf Retail Developers Limited

MUMBAI MILLS

DLF PATTO PLAZA

TREASURE ISLAND

Location: NTC Mills , Lower Parel City: Mumbai Status: Under Construction Operational From (Planned): 2009 Total Mall Area: 26,15,000 sq.ft No. of Floors: G+ 4 ( of retail space ) and 17 floors of office space Gross Leasable Area (GLA): 18,15,000 sq.ft Shopping Area: 14,00,000 sq.ft Food Court Area: 2,35,000 sq.ft Space for No of 4-wheelers: 3,600 Competitive Advantage: Location, super mall, design

Location: Panjim City: Goa Status: Under Planning Operational From (Planned): 2009 Total Land Area: 4,48,000 sq.ft No. of Floors: G+6 ( including office space) Gross Leasable Area (GLA): 7,05,000 sq.ft Shopping Area: 5,28,000 sq.ft Food Court Area: 80,000 sq.ft Competitive Advantage: Location, Mixed land development

Location: Vasarani, Latur-Nanded Road City: Nanded Status: Under Construction Operational From (Planned): November, 2008 Total Investment in the Mall: Rs 43 Crore Total Land Area : 1,20,0000 sq.ft Total Mall Area : 1,84,000 sq.ft No. of Floors (incl basement): 8 Gross Leasable Area (GLA): 2,34,000 sq.ft Leasing Agents/ Companies: Jones Lang LaSalle Meghraj CAM Charges : Rs 21per sq.ft/month Rental Model: Fixed for Retail shops/Revenue Sharing for F & B Atrium Area: 4,927 sq.ft Shopping Area: 1,06,230 sq.ft Food Court Area: 25,780 sq.ft Leisure & Entertainment Area: 24,390 sq.ft Parking Area: 1,45,309 sq.ft No of Escalators: 3 sets No. of Lifts: 5 passenger, 4 service Catchment Area: Vajirabad, CIDCO, Sarafa, Vishnupuri, Vasarani, Asarjan Mall Management : In-House Competitive Advantage: First mall in Nanded with a star category hotel and futuristic developments in nearby areas and a TENANT MIX

Anchor 1: Cinemax (Multiplex) Status/Area: Booked/4 Screens Anchor 2: Big Bazaar (Hypermarket) Status: Under Negotiation Anchor 3: Globus (Department Store) Status: Under Negotiation 239

(WEST)

MALL PROFILE

EWDPL India Pvt Ltd

TREASURE ISLAND

TREASURE ISLAND

TREASURE ISLAND

Location: M.G. Road City: Indore Status: Operational Operational: December, 2005 Total Land Area: 1,00,000 sq.ft Total Mall Area: 4,10,000 sq.ft No. of Floors (incl basement): 8 Gross Leasable Area : 3,75,000 sq.ft Leasing Agents/ Companies: Jones Lang LaSalle Meghraj CAM Charges : Rs 21per sq.ft/month Rental Model : Fixed for Retail shops/Revenue Sharing for F & B Atrium Area: 16,050 sq.ft Food Court Area: 28,000 sq.ft Leisure/ Entertainment: 62,000 sq.ft Parking Area: 1,90,000 sq.ft Space for No of 4-wheelers: 500 Space for No of 2-wheelers: 1000 No of Escalators/lifts: 5 Sets, 2 each capsule and passenger, 4 service lifts, 2 car lifts Catchment Area: Old Palasia, New Palasia, Race Course, Tukoganj, Saket, Srinagar Average Footfall on Week Days: 40,000-50,000 Average Footfall on Weekends: 80,000-1,10,000 Mall Management : In-house

Location: Dhanvantri Chikitsa Kendra Yojana, Nana Kheda City: Ujjain Status: Under Construction Operational From: September, 2008 Total Investment in the Mall: Rs 33 Crore Total Land Area: 98,200 sq.ft Total Mall Area: 2,02,000 sq.ft No. of Floors (incl basement): 7 Gross Leasable Area: 2,35,510 sq.ft Leasing Agents/ Companies: Jones Lang LaSalle Meghraj CAM Charges : Rs 21per sq.ft/month Rental Model : Fixed for Retail shops/Revenue Sharing for F & B Atrium Area: 6,566 sq.ft Shopping Area: 62,000 sq.ft Food Court Area: 28,980 sq.ft Leisure/Entertainment: 21,270 sq.ft Services Area: 14,566 sq.ft Parking Area: 1,57,326 sq.ft No. of Lifts: 5 passenger, 3 service Catchment Area : Rishi Nagar, Mahananda Nagar, Subhash Nagar, Sant Nagar Mall Management: In-house Competitive Advantage: First mall in the city, close to the beautiful ISCKON temple and lot of futuristic development.

Location: MR-10, City: Indore Operational From (Planned): June, 2009 Total Mall Area: 15,56,500 sq.ft Gross Leasable Area (GLA): 18,35,000 sq.ft Leasing Agents/ Companies: Jones Lang LaSalle Meghraj Rental Model: Fixed for Retail shops/Revenue Sharing for F & B Catchment Area: Bengali Colony, Nepania Other shopping centres/malls in 6 km radius: Mangal City Shopping Centre (operational), M2K Mall, Indore Central, 21st Century & Cinemall (under construction) Competitive Advantage: Will be the largest mall of Indore ith more than a million sqare feet, a five-star hotel, an office complex located on the upcoming commercial hub of Indore, MR-10. Located within new and upcoming residential and commercial projects.

TENANT MIX

TENANT MIX

Anchor1: Big Bazaar(Hypermarket) Status: Operational Anchor2:Pantaloon(Department Store) Status: Operational Anchor-3: Max (Department Store) Status: Operational Anchor-4: PVR Cinemas (Multiplex) No of Screens: 5 Screens

Anchor1: Globus( Department Store) Status: Booked Anchor2: Fun Republic(Multiplex) Status: Booked No of Screens/Total Seating Capacity/Area occupied: 4 Screens

240

TENANT MIX

Anchor1: Geant Category/Format: Hypermarket Status: Under Negotiation Anchor2: Spencer’s Category/Format: Hypermarket Status: Under Negotiation

(WEST)

MALL PROFILE EWDPL India Pvt Ltd

TREASURE ISLAND

TREASURE ISLAND

TREASURE ISLAND

Location: Annapurna City: Indore Operational From (Planned): June, 2009 Total Mall Area: 9,08,000 sq.ft Gross Leasable Area (GLA): 10,23,000 sq.ft Leasing Agents/ Companies: Jones Lang LaSalle Meghraj Rental Model: Fixed for Retail shops/Revenue Sharing for F & B Catchment Area : Annapurna Road, Kesar Bagh Road, Palsikar, Sindhi Colony, Katju Nagar Other shopping centres/malls in 6 km radius: Mangal City Shopping Centre (operational), M2K Mall, Indore Central, 21st Century & Cinemall (under construction) Competitive Advantage: Located in the midst of a thickly populated area dominated by upper middle class..

Location: Vadodara City: Vadodara Operational From (Planned): March, 2009 Total Mall Area: 3,07,000 sq.ft No. of Floors (incl basement): 6 Gross Leasable Area (GLA): 3,70,000 sq.ft Leasing Agents/ Companies: Jones Lang LaSalle Meghraj CAM Charges : Rs 21per sq.ft/month Rental Model: Fixed for Retail shops/Revenue Sharing for F & B Shopping Area: 1,30,167sq.ft Food Court Area: 29,557 sq.ft Leisure & Entertainment Area: 33,870 sq.ft Parking Area: 1,11,158 sq.ft Catchment Area: Fatehgunj, Jetalpur Road, Karelibaug, VIP Road, Alkapuri Other shopping centres/malls in 6 km radius: Seven Seas Mall, Baroda Central, National Plaza, Alkapuri Arcade, Centre Point, Inox, Competitive Advantage : Located in the heart of the city, close to Railway Station and University opposite to the Sayaji Garden.

Location: Opp RNT Marg City: Indore Operational From (Planned): June, 2008 Total Mall Area : 2,60,000 sq.ft Gross Leasable Area (GLA): 3,11,000 sq.ft Leasing Agents/ Companies: Jones Lang LaSalle Meghraj Rental Model: Fixed for Retail shops/Revenue Sharing for F & B Catchment Area: Old Palasia, New Palasia, Race Course, Tukoganj, Saket, Srinagar Other shopping centres/malls in 6 km radius: Mangal City Shopping Centre (operational), M2K Mall, Indore Central, 21st Century & Cinemall (under construction) Competitive Advantage: Located exactly in the Centre of the city equidistant from the Old CBD and the new CBD. Also close to the Railway station

241

(WEST)

MALL PROFILE Fashion Lifestyles (I) Ltd Benzer Group.

E-city Entertainment (I) Pvt Ltd

FUN REPUBLIC

FUN REPUBLIC

CENTER ONE

Location: Andheri City: Mumbai Status: Operational Operational From: June, 2005 Total Mall Area: 1,25,000 sq.ft Atrium area: 3,250 sq.ft Shopping Area: 2,778 sq.ft Food Court Area: 7,394 sq.ft Leisure & Entertainment Area: 37,730.86 sq.ft No of Levels: B+G+7 No of Escalators: 4 Levels connected with Escalators: GRND + 4floors No of Lifts: 4 Description of Catchment Area: Andheri (W), Santacruz, Jogeshwari

Location: Satellite Road City: Ahmedabad Status: Operational Operational From: June, 2005 Total Mall Area: 2,55,085.37 sq.ft Atrium area: 4840.4157984 sq.ft Shopping Area: 26,642.49 sq.ft Food Court Area: 8,513 sq.ft Leisure/Entertainment: 30,801.8 sq.ft Space for No. of 4-wheelers: 36,520.85 sq.ft Space for No. of 2-wheelers: 18,100.96 sq.ft No of Levels: B1+B2+G+6 No of Escalators: 4 Levels connected with Escalators: G+1st+2nd+3rd No of Lifts: 5 Total Lift Capacity: 56 Creche Area: 200 sq.ft Kids Zone Area: 600 sq.ft USP of the Mall: An integrated entertainment facility with a huge atrium space to do a lot of events and promotions. Any special schemes to attract customers: A Rewards program based on 3 parameters of providing instant, tangible benefits and value for each rupee spent. Description of Catchment Area: Satellite, Vejalpur, Bodakdev, Thaltej, Vastrapur, Bopal & Sarkhej Gandhinagar Highway Considerations in deciding RetailMix: Retail mix in tandem with the USP of providing integrated entertainment of movies, food, games and shopping. Average Footfalls on Week days: 7,000 Average Footfall on Weekends: 18,000

Location: Sector 30-A, Vashi, Navi Mumbai 400 705 Status: Operational Operation From (Planned): 2003 Total Mall Area : 1,50,000 sq.ft Gross Leasable Area : 1,20,000 sq.ft Atrium Area :15,000 sq.ft Shopping Area:1,00,000 sq.ft Food Court Area:20,000 sq.ft Leisure/Entertainment :5,000 sq.ft Services Area:10,000 sq.ft No. of Levels: Ground + 3 Levels No. of Escalators & Lifts: 6 Escalators, 2 guest elevators & 1 service elevator USP of the Mall: Location, Mall for All Brand mix (Retail and food court) Average Footfalls on Week days: 16,000 + Average Footfall on Weekends : 40,000 + Any special schemes to attract customers: Purchase link Promotions and Events at regular intervals. Catchment Area: New Bombay i.e from Airoli till Panvel, Chembur & Ghatkopar, Considerations in deciding Retail-Mix: to be a 'MALL FOR ALL' i.e. catering to all demographic and socio economic segments.

242

TENANT MIX

Anchor1:Pantaloons(DepartmentStore ) Status/Area: Operational/ 28,000sq.ft: Anchor2:Food Bazaar(Supermarket) Status/Area:Operational/18,900sq.ft Anchor3: Mc Donalds – Food Court Status/Area:Operational/2,000sq.ft Anchor 4: Bombay Blues & Noodle Bar

Gayatri Homessiddhi Group

LITTLE WORLD MALL Location: Navi Mumbai City: Kharghar Status: Ready for Fitouts Planned: October, 2007 Total Land Area: 57,000 sq.ft Total Built-up Area: 1,50,000 sq.ft No. of Floors: G+4 Gross Leasable Area: 2,50,000 sq.ft Leased/ Sold Space Ratio: Leased Mall Leasing Agents/ Companies: FINESTATEINDIA/ Alliance Property Services CAM Charges: Under Computation Rental Model: Fixed Rent Atrium Area: 9,500 sq.ft Shopping Area: 1,80,000 sq.ft Food Court Area: 30,000 sq.ft Leisure/Entertainment: 30,000 sq.ft Services Area: 20,000 sq.ft Parking Area: 90,000 sq.ft Space for No of 2-wheelers: 300 No of Escalators/lifts:6 &8 Kids Play/Creche Area: 10,000 sq.ft Catchment Area: Nerul to Panvel Other shopping centres/malls in 6 km radius: 2 Mall Management: Outsourced TENANT MIX

Anchor1: Adlabs (Multiplex) No of Screens/Total Seating Capacity: 4 screens/1,400 seats Anchor2: Food Bazaar (supermarket) Area occupied: 10,000 sq.ft Anchor3: Max Lifestyle(Department) Status/Area:Booked/10,000sq.ft

Golden Circle Business Services (p) Ltd.

MANGAL CITY Location: Vijay Nagar AB Road , Indore City: Indore (MP) Total Land Area: 1,50,000 sq.ft Total Mall Area: 3,00,000 sq.ft Total Floor Space: 40,000 sq.ft Gross Leasable Area: 2,10,000 sq.ft Atrium area: 5,000 sq.ft Shopping Area: 1,60,000 sq.ft Food Court Area: 15,000 sq.ft Leisure/ Entertainment: 45,000 sq.ft Services Area: 5,000 sq.ft Parking Area: 1,00,000 sq.ft Space for No of 4-wheelers: 600 No of Levels: 4 No of Escalators/lifts: 4 each Creche/kids zone:600 sq.ft / 2,000sq.ft USP of the Mall: Location, Proper retail mix & Design of mall Any special schemes to attract customers: Throughout the year such scheme go around Considerations on choice of Location: Most prime strategic location in MP, Most visible Plot with four-side open with service road & major road facing all the side. Description of Catchment Area: Most prime residential & hospitality area with effective catchments of hi-class population around 10 lacs resident. Considerations in deciding Retail-Mix: Catchments Population, Competition, supply in the immediate vicinity, cross component, demand, & Activity with conversion factor. Average Footfalls on Weekdays: 20,000 to 25,000 Average Footfall on Weekends: 35,000.00

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MALL PROFILE Growels 101

GROWELS 101 Location: Akurli Road, Kandivali (E) City: Mumbai - 101 Status: Phase I - Operational Phase II & III under construction. Date of Launch/ Planned launch schedule: Phase II - April 2008 Total Investment in the Mall: Rs. 150 Crore Total Land Area: 4,25,000 sq.ft Total Mall Area: 7,00,000 sq.ft No. of Floors: Ground + 4 Gross Leasable Area: 5,00,000 sq.ft CAM Charges: At actuals + 10% management fees Rental Model: Fixed Rent Parking Area: 1,00,000 sq.ft No of Escalators: Planned - 18 No. of Lifts: Planned - 7 Passenger + 7 Service Lifts. Catchment Area: Dahisar to Jogeshwari (East & West) Other shopping centres/malls in 6 km radius: Raghuleela Mall & The Hub Average Footfall Week Days: 5,000 + Average Footfall Weekends: 10,000 + Mall Management: In-house Competitive Advantage: Ideal Location & the mall designed by Architects from USA TENANT MIX

Anchor1: Big Bazaar(Hypermarket) Status/Area: Operational/68,000 sq.ft Anchor2: Cinemax (Multiplex) Status: Operational No of Screens/Total Seating Capacity: 4 Screens/1,250 seats

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MALL PROFILE

Himalaya Mall

HIMALAYA MALL

HIMALAYA MALL

HIMALAYA MALL

Location: Drive In road City: Ahmedabad Status: Operational Operational: April, 2007 Total Investment: Rs.100 Crore Total Land Area: 117,000 sq.ft Total Mall Space: 425,000 sq.ft Gross Leasable Area: 270,000 sq.ft GLA: GFA Ratio: 100 : 60 Leased/ Sold Space Ratio: 100 : 70 Leasing Agents/ Companies: Jones Lang Lasalle Meghraj Pvt. Ltd. CAM Charges: Rs.14 per sq.ft/month Rental Model : Lease Atrium Area: 22,000 sq.ft Shopping Area: 204,735 sq.ft Food Court Area: 17,865 sq.ft Leisure/ Entertainment:47,400 sq.ft Services Area: 10,000 sq.ft Parking Area: 123,000 sq.ft Space for No of 4-wheelers: 350 Space for No of 2-wheelers: 1500 No of Escalators/lifts: 7 and 6 Kids Play/Creche Area: 2,000 sq.ft Average Footfall on Week Days& Weekends:15,000 / 50,000 Mall Management : Outsourced

Location: 130 Feet Ring Road, Nr. Waghawadi Road. City: Bhavnagar Status: Under Construction Planned: December, 2008 Total Investment in Mall: Rs.250 Crore Total Land Area: 2,40,000 sq.ft Total Mall Space: 6,25,000 sq.ft Gross Leasable Area: 575,000 sq.ft GLA: GFA Ratio: 100 : 60 Leasing Agents/ Companies: Jones Lang Lasalle Meghraj Pvt. Ltd. Rental Model: Lease Atrium Area: 30,000 sq.ft Shopping Area: 3,45,000 sq.ft Food Court Area: 30,000 sq.ft Leisure/ Entertainment: 50,000 sq.ft Services Area: 15,000 sq.ft Parking Area: 1,45,000 sq.ft Space for No of 4-wheelers: 600 Space for No of 2-wheelers: 1500 No of Escalators/Lifts: 14/9 Kids Play/Creche Area: 5,000 sq.ft Considerations on choice of location: High Population and Good Spending Power Competitive Advantage: Location and tenant mix. Hyper Market, Multiplex, Food Court, Entertainment zone, huge atrium and parking area.

Location: 100 Feet Ring Road, Anand. City: Anand - Gujarat. Status: Under Construction Planned: December, 2008 Total Investment in Mall: Rs.200 Crore Total Land Area: 1,95,000 sq.ft Total Mall Space: 4,50,000 sq.ft Gross Leasable Area: 4,00,000 sq.ft GLA: GFA Ratio: 100 : 60 Leasing Agents/ Companies: Jones Lang Lasalle Meghraj Pvt. Ltd. Rental Model: Lease Atrium Area: 20,000 sq.ft Shopping Area: 2,44,000 sq.ft Food Court Area: 36,000 sq.ft Leisure/ Entertainment: 65,000 sq.ft. Services Area: 10,000 sq.ft. Parking Area: 75,000 sq.ft. Space for No of 4-wheelers: 300 Space for No of 2-wheelers: 1,000 No. of Escalators/Lifts: 7/8 Kids Play/Creche Area: 5,000 sq.ft. Considerations on choice of location: High Population and Good Spending Power Other shopping centres/malls in 6 km radius: None Mall Management: Not Operational Competitive Advantage: Location and tenant mix. Hyper Market, Multiplex, Food Court, Entertainment zone, huge atrium and parking area. TENANT MIX Anchor1: Big Bazaar (Hypermarket) Status/Area: Booked/42,000sq.ft Anchor2: Pantaloons-Department Status/Area: Booked/15,000sq.ft Anchor3: Fame (Multiplex)

TENANT MIX

Anchor1: Big Bazaar(Hypermarket): Status/Area:Operational/61,637sq.ft Anchor2: Croma Status: Operational Area occupied: 28,420 sq.ft Anchor3: Adlabs (Multiplex) Status: Operational No of Screens/Total Seating Capacity/Area occupied: 5 Screens/1,200 seats

TENANT MIX

Anchor1: Big Bazaar (Hypermarket) Status/Area: Booked/42,000sq.ft Anchor2:Pantaloons(Department Store) Status/Area: Booked/ 14,400sq.ft Anchor3: Adlabs (Multiplex) Status/Area: Booked/50,000 sq.ft Anchor4: Globus- Department Store

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Himalaya Mallhimalaya Mall

Huma Exhibitors

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MALL PROFILE Indo Pacific Software & Entertainment Ltd.

HIMALAYA MALL

HUMA MALL

POONAM MALL

Location: N. H. No. 8, Nagalpur, Mehsana City: Mehsana - Gujarat Status: Under Construction Planned: December, 2008 Total Investment in Mall: Rs.150 Crore Total Land Area: 1,95,000 sq.ft Total Mall Space: 4,50,000 sq.ft Gross Leasable Area: 4,00,000 sq.ft GLA: GFA Ratio: 100 : 60 Leasing Agents/ Companies: Jones Lang Lasalle Meghraj Pvt. Ltd. Rental Model : Lease Atrium Area: 20,000 sq.ft Shopping Area: 2,44,000 sq.ft Food Court Area: 36,000 sq.ft Leisure/Entertainment: 65,000 sq.ft. Services Area : 10,000 sq.ft. Parking Area: 75,000 sq.ft. Space for No of 4-wheelers: 300 Space for No of 2-wheelers: 1000 No of Escalators/Lifts: 7/8 Kids Play/Creche Area: 5,000 sq.ft Considerations on choice of location: High Population and Good Spending Power Competitive Advantage: Location and tenant mix. Hyper Market, Multiplex, Food Court, Entertainment zone, huge atrium and parking area.

Location: Mumbai City: Mumbai Status: Operational Operational From: July, 2005 Total Land Area: 43,055 sq.ft Total Mall Space: 1,00,000 sq.ft Atrium area: 5,000 sq.ft Shopping Area: 30,000 sq.ft Food Court Area: 20,000 sq.ft Leisure/ Entertainment: 50,000 sq.ft Space for No of 4-wheelers: 200 Space for No of 2-wheelers: 100 No of Levels: Gr plus 4 No of Lifts: 3 USP of the Mall: 1st Factor Outlet Mall with Multiplex Any special schemes to attract customers: Genuine discounts from factory run stores through out the year Description of Catchment Area: Powai, Hiranandani Gardens, Bhandup,Kanjurmarg Considerations in deciding RetailMix: 75 Brands for Garments, Home Linen etc Average Footfalls on Week days/ Weekends: 5,000/20,000 Any other details: It's the 1st factory outlet mall with multiplex and restaurants, lounge in the Country. TENANT MIX Anchor1: Adlabs Anchor2: Globus Anchor3: Megamart Anchor4: Primus Other Brands/Retailers: Daks, Weekender, Sheetal Samudra Resturant,Cheers Lounge, Sheisha Resturant, Welspun Home Mart, Provogue, United Colours of

Location: Wardhaman Nagar City: Nagpur , Maharashtra Status: Operational Operational From: August, 2006 Total Investment in Mall: Rs.65 Crore Total Land Area: 1,00,000 sq.ft Total Super Built-up: 3,00,000 sq.ft No. of Floors: G + 4 Gross Leasable Area: 2,00,000 sq.ft Leased/ Sold space ratio: 1 : 0 CAM Charges: Rs.15 per sq.ft/month Rental Model: Fixed Charges Space for No of 4-wheelers: 800 Space for No of 2-wheelers: 400 No of Escalators/Lifts: 1/4 Competitive Advantage: Apart from location , the mall is very well planned and implemented Promotion schemes: Customer Loyalty Programme Considerations on choice of Location: Prime Area of Nagpur - East Market Area: Wardhaman Nagar, Deshpande Layout, Central Avenue, Gandhibagh , Itwari , H.B. Colony Average Footfalls on Week days & Week ends: 30,000 & 50,000 Mall Management: In-house

TENANT MIX

Anchor-1: Big Bazaar (Hypermarket) Status/Area: Booked/42,000sq.ft Anchor2: Cinemax (Multiplex) Status/Area: Booked/45,000sq.ft Anchor3: Spice & Vices Food Court Status/Area: Booked/ 36,000 sq.ft Anchor-4: Galaxy Entertainment Status/Area: Booked/10,000sq.ft

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TENANT MIX

Anchor1: Big Bazaar (Hypermarket) Status/Area:Operational/ 1,20,000sq.ft Anchor2: Inox/ Multiplex Status/Screens: Operational/4 Anchor3: Odyssey (Leisure) Status/ Area: Operational/ 15,000sq.ft Other Brands/Retailers: Rajdhani Thali , Archies , Reid & Taylor , Levis Signature , Welspun

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MALL PROFILE

Indo Pacific Software & Entertainment Ltd.

Inorbit Malls (india) Pvt Ltd

POONAM MALL

POONAM MALL

INORBIT MALL

Location: VIP Road City: Nagpur , Maharashtra Status: Under Construction Planned: October, 2007 Total Investment in Mall: Rs.95 Crore Total Land Area: 70,000 sq.ft Total Mall Area: 1,40,000 sq.ft No. of Floors: 4 (Retail) + 9 (Hotel) Gross Leasable Area: 2,40,000 sq.ft Leased/ Sold space ratio: 1 : 0 CAM Charges: Rs.15 per sq.ft/month Rental Model : Fixed Charges Space for No of 4-wheelers: 550 Space for No of 2-wheelers: 300 No of Escalators/ Lifts: 7/6 Competitive Advantage: Central Business District of Nagpur Considerations on choice of Location: Prime Area of Nagpur - West Market Area: Civil Lines , Ramdaspeth, Dharampeth , Sitabuldi , Bajaj Nagar , VIP Road , Sadar , Laxmi Nagar , Khamla , Dhantoli , Byramji Town , Chhaoni , Raj Nagar , Vijay Nagar , New Colony Mall Management : In-house TENANT MIX Anchor1: Lifestyle Max (Department) Status/Area: Booked/24,000 sq.ft Anchor2: Odyssey (Leisure) Status/Area: Booked/15,000 sq.ft Anchor 3: Pizza Hut(Catering) Status/Area: Booked/3,000 sq.ft Anchor 4: Entertainment (Leisure) Status: Booked Area occupied: 14,000 sq.ft Other Brands/Retailers: Food Court

Location: Khamla City: Nagpur , Maharashtra Status: Under Construction Operational: November, 2008 Total Investment in Mall: Rs.150 Crores Total Land Area: 1,50,000 sq.ft Total Mall Area: 5,00,000 sq.ft Gross Leasable Area: 3,50,000 sq.ft Leased/ Sold space ratio: 1 : 0 Rental Model: Fixed Charges Space for No of 4-wheelers: 900 Space for No of 2-wheelers: 300 No of Escalators/lifts: 8 each Competitive Advantage: Well planned . Size of the Mall is the advantage as it will host almost every category . Considerations on choice of Location: Prime Area of Nagpur South Market Area: Khamla , Pratap Nagar , Civil Lines , Ramdaspeth , New Nagpur Mall Management: Inhouse TENANT MIX Anchor1: Hypermarket Status/Area: Under Negotiation, 75,000 sq.ft Anchor2: Multiplex Status: Under Negotiation Anchor3: Departmental Store Status: Under Negotiation Area occupied: 50,000 sq.ft Anchor4: Fast Food Chain & Food Court Status: Under Negotiation Area occupied: 6,000 sq.ft Anchor5: Entertainment Status: Under Negotiation Area occupied: 35,000 sq.ft

Location: Malad City: Mumbai Status: Operational, Februry, 2004 Total Land Area: 5,00,000 sq.ft Total Mall Area: 5,00,000 sq.ft No. of Floors: Ground +2 Gross Leasable Area: 3,65,000 sq.ft Leased: 100% leased CAM Charges: Rs.40 per sq.ft/month for stores, Rs.65 per sq.ft/month for Food court Rental Model: Rental Atrium Area: Approx 650 sq.ft Shopping Area: 3,65,000 sq.ft Food Court Area: 24,000 sq.ft Leisure/ Entertainment: 55,000 sq.ft Services Area: 1,50,000 sq.ft Parking Area: 1,20,000 sq.ft Space for No of 4-wheelers: 1,380 Space for No of 2-wheelers: 200 No. of Lifts: 4 Kids Play/Creche Area: Yes Other shopping centres/malls in 6 km radius: Infinity Andheri, Raghuleela, Hub, Growel, Coming Soon - Oberoi, Infinity Malad, Evershine, Megamall Average Footfall on Week Days & Weekends: 30,000 & 55,000 Mall Management : In-house TENANT MIX Anchor1: Shoppers’ Stop– Department Status/Area: Operational/64,530 sq.ft Anchor2: Lifestyle – Department Store Status/Area: Operational/46,174 sq.ft Anchor3: Spencer's Hyper Status/Area: Operational/47,108 sq.ft Anchor4: Fame Malad (Multiplex) Status: Operational No of Screens/ Total Seating Capacity: 6 screens/1,500 seats

246

Deepak Fertilisers And Petrochemicals Corp Ltd

Inorbit Malls (india) Pvt Ltd

INORBIT MALL - VASHI

INORBIT

Location: Vashi , Navi Mumbai City: Navi Mumbai Status: Under Construction Total Land Area: 3,29,602 sq.ft Total Mall Area: 8,52,331 sq.ft No. of Floors: Retail- 4 ,Parking- 1 and part 1 Gross Leasable Area: 3,56,108 sq.ft Shopping Area: 5,55,677 sq.ft Leisure/ Entertainment: 13,756 sq.ft Services Area: 38,512 sq. ft Parking Area: 2,58,148 sq.ft Space for No of 4-wheelers: 668 No of Escalators: 14 No. of Lifts: 4 Passenger, 7 Service Other shopping centres/malls in 6 km radius: Centre one, Palm Beach Galleria

Location: Pune-Nagar road,Vadgaon Sheri Village City: Pune Status: Planned Total Land Area: 4,44,553.20 sq.ft Total Built-up Area : 9,01,045 sq.ft No. of Floors: Retail -4 lvls., Parking 2 lvls. and part 3 rd lvl. Shopping Area: 5,00,357 sq.ft Food Court Area: 31,998 sq.ft Leisure & Entertainment Area: 15,745 sq.ft Services Area: 39,081 sq.ft Parking Area: 3,61,607 sq.ft Space for No of 4-wheelers: 883 No of Escalators: 15 No. of Lifts: 3 Passenger, 5 Service Other shopping centres/malls in 6 km radius: Pune Central

TENANT MIX

Anchor-1: SSL Area occupied: 63,492 sq.ft Anchor-2: Hypercity Category/Format: Hypermarket Status: Operational Area occupied: 76,693 sq.ft

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MALL PROFILE

MALL- PUNE

TENANT MIX

Anchor-1: SSL Area occupied: 71,316 sq.ft.

247

ISHANYA Location: Opp Golf Course Road, Airport Road City: Pune Status: Under Construction Total Investment in Mall: Rs 150 crore Total Land Area: 4,73,000 sq.ft Total Mall Area: 5,50,000 sq.ft No. of Floors: 5 Gross Leasable Area: 5,20,000 sq.ft GLA: GFA Ratio: 70:30:00 Leased/ Sold space ratio: NA Leasing Agents/ Companies: TrammellCrowMeghraj CAM Charges: At Actuals Rental Model: Leave and Licensed Format Shopping Area: 5,00,000 sq.ft Food Court Area: 16,000 sq.ft Leisure/ Entertainment: 7,700 sq.ft Services Area: 27,550 sq.ft Parking Area: 1,66,290 sq.ft Space for No of 4-wheelers: 600 Space for No of 2-wheelers: 900 No of Escalators: 12 + 2 travelators Levels connected with Escalators: all No. of Lifts: 22 Kids Play/ Creche Area: 2,200 sq.ft Considerations on choice of Location: * Located just within 5 kms radius from the Pune airport and the Railway station. Pune is Western India's 7 fastest growing cities (as per ICICI study) * Conveniently located near the city's upmarket residential and commercial areas Market Area: Pune, Nashik, Aurangabad, Satara, Kolhapur, Ahmednagar, Icchalkaranji, Thane,

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MALL PROFILE

Jp Infrastructure Pvt. Ltd

ISCON MEGA MALL Location: SG Highway City: Ahmedabad Status: Operational, July, 2007 Total Investment in Mall: Rs.140 Crore Total Land Area: 2,54,673 sq.ft Total Mall Area: 4,50,000 sq.ft No. of Floors: Basement + 3 Level Gross Leasable Area: 3,48,667.87 sq.ft Leased/ Sold Space Ratio: 100% Leasing Agents/ Companies: Mutiple CAM Charges: On Actuals Rental Model: Fixed Rent Atrium Area: 22,000 sq.ft Shopping Area: 3,33,561.55 sq.ft Food Court Area: 14,549.88 sq.ft Leisure/Entertainment Area: 29,678 sq.ft Parking Area: 1,32,630.06 sq.ft Space for No of 4-wheelers: 650 Space for No of 2-wheelers: 791 No of Escalators/Lifts: 12/8 Kids Play/Creche Area: 15,000 sq.ft Promotion: Iscon Loyalty Programme Considerations on choice of location: On the main S.G. Highway Average Footfall on Week Days& Weekends:14,000-18,000 & 60,00080,000 Mall Management : In–house Competitive Advantage: Prime Location, Centrally Air-conditioned mall with all the hi-tech facilities and famous brands. TENANT MIX Anchor1: Reliance (Hypermarket) Status/Area: Operational/1,80,000 sq.ft Anchor2: Westside (Department Store) Status/Area: Operational/25,000 sq.ft Anchor3: Landmark (Leisure)

ISCON PLATINUM MEGA MALL Location: SP Ring Road City: Ahmedabad Status: Planned Planned: October, 2009 Total Investment in Mall: Rs.250 Crore Total Land Area: 3,03,589.79 sq.ft Total Mall Area: 10,63,764 sq.ft No. of Floors: Basement+5 Level Gross Leasable Area: 5,53,943 sq.ft Leasing Agents/ Companies: Multiple Rental Model: Fixed Rent Atrium Area: 16,509.57 sq.ft Shopping Area: 4,32,193 sq.ft Food Court Area : 35,133 sq.ft Leisure/ Entertainment: 1,21,747 sq.ft Parking Area: 3,02,109 sq.ft Space for No of 4-wheelers: 1,346 Space for No of 2-wheelers: 126 No of Escalators: 20 No. of Lifts: 11 + 2 Travelator Kids Play/Creche Area: 16,205 sq.ft Considerations on choice of location: On the SP Ring Road Competitive Advantage: Prime Location, Centrally Air-conditioned mall with all the hi-tech facilities and famous brands. TENANT MIX Anchor1: Star India Bazaar Status/Area: Booked/80,000 sq.ft Anchor2: Westside- Deparment Store Status/Area: Booked/35,000 sq.ft Anchor3: Landmark -Leisure Status/Area: Booked/25,000 sq.ft Anchor4: Croma Status/Area: Booked/25,000 sq.ft

248

ISCON MEGA MALL Location: Dumas Road City: Surat Status: Under Construction Planned: January, 2009 Total Investment in Mall: Rs.175 Crore Total Land Area: 2,16,978.90 sq.ft Total Mall Area: 7,24,583 sq.ft No. of Floors: Basement+ 5 Level Gross Leasable Area : 5,38,704 sq.ft Leasing Agents/ Companies: Multiple Rental Model: Fixed Rent Atrium Area: 25,120 sq.ft Shopping Area: 4,16,532 sq.ft Food Court Area: 44,032 sq.ft Leisure/Entertainment : 1,22,172 sq.ft Parking Area: 1,66,388 sq.ft Space for No of 4-wheelers: 957 Space for No of 2-wheelers: 803 No. of Escalators/lifts: 12/ 11 + 2 Travalator Kids Play/Creche Area: 13,666 sq.ft Considerations on choice of location: On the Dumas Road Competitive Advantage: Prime Location, Near Airport, Centrally Airconditioned mall with all the hi-tech facilities and famous brands. TENANT MIX Anchor1: Star India Bazaar Status/Area: Booked/70,000 sq.ft Anchor2: Westside Status/Area: Booked/30,000 sq.ft Anchor3: Landmark Status/Area: Booked/ 25,000 sq.ft Anchor4: At Home Status/Area: Booked/16,000 sq.ft

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MALL PROFILE Jp Infrastructure Pvt. Ltd

ISCON MEGA MALL

ISCON MALL

ISCON MEGA MALL

Location: Gotri Road City: Baroda Status: Planned Operational From: December, 2008 Total Investment in Mall: Rs.125 Crore Total Land Area: 1,80,249 sq.ft Total Mall Area: 4,93,673 sq.ft No. of Floors: Basement+ 4 Level Gross Leasable Area: 3,04,030 sq.ft Leasing Agents/ Companies: Multiple Rental Model: Fixed Rent Atrium Area: 22,155 sq.ft Shopping Area: 2,21,685 sq.ft Food Court Area: 14,544 sq.ft Leisure/ Entertainment: 82,345 sq.ft Parking Area: 1,14,053 sq.ft Space for No of 4-wheelers: 466 Space for No of 2-wheelers: 360 No of Escalators: 6 No. of Lifts: 8 + 2 Travalator Kids Play/Creche Area: 12,963 sq.ft Considerations on choice of location: On the Gotri Road TENANT MIX Anchor-1: Star India Bazaar Category/Format: Hypermarket Status: Booked Area occupied: 65,000 sq.ft Anchor-2: Pyramid Category/Format: Department Store Status: Booked Area occupied: 30,000 sq.ft Anchor-5: Mutilplex Category/Format: Multiplex Status: Under Negotiation Area occupied: 30,000 sq.ft

Location: Dumas Road City: Surat Status: Operational, May, 2007 Total Investment in Mall: Rs.70 Crore Total Land Area: 1,23,708.92 sq.ft Total Mall Area: 3,25,000 sq.ft No. of Floors: Basement + 4 Level Gross Leasable Area: 2,33,777.14 sq.ft Leased/ Sold Space Ratio: 100% Leasing Agents/ Companies: Mutiple CAM Charges: On Actuals Rental Model: Fixed Rent Atrium Area: 16,617 sq.ft Shopping Area: 2,00,669.15 sq.ft Food Court Area: 28,032.34 sq.ft Leisure/Entertainment: 7,932.2 sq.ft Parking Area: 77,224.19 sq.ft Space for No of 4-wheelers: 356 Space for No of 2-wheelers: 293 No of Escalators/lifts: 8/4 Kids Play/Creche Area: 10,000 sq.ft Promotions: Iscon Loyalty Programme Considerations on choice of location: On the Ring Road Average Footfall on Week Days & Weekends: 10,000–12,000 &40,00060,000 Mall Management : In -house Competitive Advantage: Prime Location, Centrally Air-conditioned mall with all the hi-tech facilities and famous brands. TENANT MIX Anchor1: Westside (Department Store) Status/Area: Operational/30,000 sq.ft Anchor2: Pantaloon(Department Store) Status/Area: Operational/40,000 sq.ft Anchor5: Collection i ( Home Store) Status/Area: Operational/10,000 sq.ft

Location: Nana Mava Road City: Rajkot Status: Under Construction Operational From: October, 2007 Total Investment in Mall: Rs.40 Crore Total Land Area: 87,116 sq.ft Total Mall Area: 1,76,295 sq.ft No. of Floors: Basement + 4 Level Gross Leasable Area :1,67,474.38 sq.ft Leased/ Sold Space Ratio: 87% Leasing Agents/ Companies: Multiple Rental Model: Fixed Rent Atrium Area: 12,550 sq.ft Shopping Area: 1,24,926.78 sq.ft Food Court Area: 15,145.8 sq.ft Leisure/Entertainment : 32,452.8 sq.ft Parking Area: 47,853.62 sq.ft Space for No of 4-wheelers: 289 Space for No of 2-wheelers: 225 No of Escalators/lifts: 6 & 3 Kids Play/Creche Area: 8,000 sq.ft Considerations on choice of location: On the Ring Road Competitive Advantage: Prime Location, Centrally Air-conditioned mall with all the hi-tech facilities and famous brands. TENANT MIX Anchor1 Westside(Deparment Store) Status/Area: Booked/3,000 sq.ft Anchor2 Jumbo Electronics Status/Area: Booked/9,000 sq.ft Anchor3: Cinemax (Multiplex) Status/Area: Booked/35,000 sq.ft

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MALL PROFILE

Ksl Realty And Infrastructure Ltd

EMPRESS CITY

DECCAN CITY

K LIFESTYLE

Location: Nagpur City: Nagpur Status: Under-construction Operational : December,2007 Total Land Area: 7,00,000 sq.ft No. of Floors: 4 Gross Leasable Area: 7,00,000 sq.ft Leased/ Sold Space Ratio: 80% Leasing Agents/ Companies: JLL Meghraj & Others CAM Charges : At Actual Atrium Area: 23,000 sq.ft Shopping Area : 5,00,000 sq.ft Food Court Area : 40,000 sq.ft Leisure/ Entertainment: 60,000 sq.ft Parking Area: 1,83,692 sq.ft Space for No of 4-wheelers: 1141 cars No of Escalators: 24 No. of Lifts: 6 passenger / 8 service TENANT MIX Anchor1: Big Bazaar (Hypermarket) Status/Area: Booked/82,077 sq.ft Anchor2: McDonald's (Catering) Status/Area: Booked/4,000 sq.ft Anchor3: Fame Adlabs (Multiplex) Status/Area: Booked/39,400 sq.ft Anchor4: Lifestyle(Department Store) Status/Area: Booked/89,240 sq.ft Anchor5: Galaxy Entertainment Category/Format: Leisure Status: Booked Area occupied: 13,000 sq.ft

Location: Kolhapur City: Kolhapur Status: Planned Operational From (Planned): December,2008 Total Land Area: 10,00,000 sq.ft No. of Floors: 4 Gross Leasable Area (GLA): 4,00,000 sq.ft Leased/ Sold Space Ratio: 50% Leasing Agents/ Companies: JLL Meghraj & Others CAM Charges: As Actual Atrium Area: 6,490 sq.ft Shopping Area: 3,00,000 sq.ft Food Court Area: 35,000 sq.ft Leisure & Entertainment Area: 55,000 sq.ft Parking Area : 70,000 sq.ft Space for No of 4-wheelers: 294 cars

Location: Mumbai City: Mumbai (Lower Parel) Status: Operational Operational From (Planned): Launched Total Land Area: 20,000 sq.ft No. of Floors: 1 Gross Leasable Area: 20,000 sq.ft Leased/ Sold Space Ratio: 100% Leasing Agents/ Companies: JLL Meghraj & Others CAM Charges : As Per Actual Shopping Area : 20,000 sq.ft Food Court Area: 1,000 sq.ft

250

Ksl Realty And Infrastructure Ltd

Kohinoor Planet Constructions Pvt. Ltd.

(WEST)

MALL PROFILE Kshitij Investmentadvisory Co Ltd

K LIFESTYLE

KOHINOOR CITY MALL

ORCHID CITY CENTRE

Location: Mumbai (Fort) City: Mumbai Status: Under-construction Operational From (Planned): Launched Total Land Area: 20,000 sq.ft No. of Floors: 1 Gross Leasable Area (GLA) : 20,000 sq.ft Leased/ Sold Space Ratio: 100% Leasing Agents/ Companies: JLL Meghraj & Others CAM Charges: As per actual Shopping Area: 20,000 sq.ft

Location: Near Bandra Kurla Complex City: Mumbai Catchment: Thane to Mahim, Chembur to Bandra Total Mall Area: 4,00,000 sq.ft Gross Leasable Area: 3,00,000 sq.ft Positioning/USP: Indian markets with western efficiencies

Location:, Bellasis Road, opposite Mumbai Central Bus Station City: Mumbai Project Type: PRIL leased Total Mall Space: 210,000sqft No of Floors: G + 3 Floor Plate: 42,000 sq.ft

251

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MALL PROFILE

Kshitij Investmentadvisory Co Ltd

MILAN MALL Location: Milan Subway Road City: Mumbai Project Type: PRIL Leased Mall Total Mall Space: 92,021sq.ft No of Floors: G + 3 Floor Plate: 21,900 sq.ft Car Park :160 car park lots Expected Handover for Fit-out: Operational

MUMBAI - KURLA

PUNE, HADAPSAR

Location: Mumbai, LBS Marg, Kurla Project Type: Market City (Retail + Commercial + Hospitality) Size: 2.6 million sq.ft Retail Floors: 1.9 Million sq.ft Car Park: 2900 car park lots Expected Handover for Fitout: September, 2009 Positioning of Mall: Market City

Location: Pune, Hadapsar, From Solapur Road Project Type: PRIL leased Size: 217,000 sq.ft Retail Floors: G + 4 Floor plate: 52,000 sq.ft Car Park: 200 car park lots Expected Handover for Fitout: January 2008 Positioning of Mall: Value/Lifestyle TENANT MIX Anchor1: Super/ Hypermarket Anchor2: Department Store Anchor3: Multiplex Anchor4: Food court Anchor5: Entertainment arcade Anchor6: Consumer Durables/Electronics anchor Anchor-: Home Furnishing anchor Anchor8: Books & Music anchor Anchor9: Gym/ Beauty Anchor Anchor10: Vanilla Retail

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MALL PROFILE Kshitij Investmentadvisory Co Ltd

KSHITIJ MALL

KSHITIJ MALL

KSHITIJ MALL

Location: Sarabhai Circle, Opposite Baroda Central, Baroda Project Type: Kshitij Mall Size: 140,475 sqft Retail Floors: G + 3 Floor plate: 38,000 sq.ft Car Park: 115 car park lots Expected Handover for Fit-out: August 2007 Positioning of Mall: Lifestyle TENANT MIX Anchor1: Super/ Hypermarket Anchor2: Department Store Anchor3: Multiplex Anchor4: Food court Anchor5: Entertainment arcade Anchor6: Consumer Durables/Electronics anchor Anchor7: Home Furnishing anchor Anchor-8: Books & Music anchor Anchor9: Gym/ Beauty Anchor Anchor10: Vanilla Retail

Location: Sarabhai Circle, Opposite Baroda Central, Baroda Project Type: Kshitij Mall Size: 140,475 sqft Retail Floors: G + 3 Floor plate: 38,000 sq.ft Car Park: 115 car park lots Expected Handover for Fit-out: August 2007 Positioning of Mall: Lifestyle

Location: RNT Marg, Close to MG Road, Treasure Island, Indore Project Type: Kshitij Mall Size: 2,55,000sq.ft Retail Floors: LG + G + 7 Floor plate: 35,000sq.ft Car Park: 300 car park lots Expected Handover for Fitout: April 2008 Positioning of Mall: Lifestyle

TENANT MIX

Anchor1: Super/ Hypermarket Anchor-2: Department Store Anchor-3: Multiplex Anchor-4: Food court Anchor-5: Entertainment arcade Anchor-6: Consumer Durables/Electronics anchor Anchor-7: Home Furnishing anchor Anchor-8: Books & Music anchor Anchor-9: Gym/ Beauty Anchor Anchor-10: Vanilla Retail

253

TENANT MIX

Anchor-1: Super/ Hypermarket Anchor-2: Department Store Anchor-3: Multiplex Anchor-4: Food court Anchor-5: Entertainment arcade Anchor-6: Consumer Durables/Electronics anchor Anchor-7: Home Furnishing anchor Anchor-8: Books & Music anchor Anchor-9: Gym/ Beauty Anchor Anchor-10: Vanilla Retail

(WEST)

MALL PROFILE

Kumar Builders

FUN N SHOP

44 SINEW HILLS

KK MARKET

City: Pune Status: Under Construction Total Mall Area: 1,50,000 sq.ft Gross Leasable Area (GLA): 1,50,000 sq.ft Space for No of 4-wheelers: 187 Space for No of 2-wheelers: 200 No of Levels:3Levels connected with Escalators: 1 No of Lifts: 4 Description of Catchment Area: MIG & EIG Average Footfalls on Weekdays: 6,000 Average Footfall on Weekends: 10,000

City: Pune Status: Under Construction Total Mall Area: 3,00,000 sq.ft Gross Leasable Area (GLA): 3,00,000 sq.ft Space for No of 4-wheelers: 250 No of Levels: 4 Levels connected with Escalators: 3 No of Lifts: 10 USP of the Mall: A unique combination of retail and commercial Description of Catchment Area: MIG & EIG Average Footfalls on Week days: 10,000-15,000 Average Footfall on Weekends: 20,000-25,000

City: Pune Status: Partly Operational Total Mall Area: 4,50,000 sq.ft Gross Leasable Area (GLA): 4,50,000 sq.ft Space for No of 4-wheelers: 400 Space for No of 2-wheelers: 700 No of Levels: 4 Levels connected with Escalators: 3 No of Lifts: 16 USP of the Mall: Discount mall Description of Catchment Area: MIG Average Footfalls on Week days: 10,000-15,000 Average Footfall on Weekends: 20,000-25,000

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MALL PROFILE Kumar Builders

KUMAR ASHOK

FUN N FAIR

FUN N FOOD

City: Pune Total Mall Area: 4,00,000 sq.ft Gross Leasable Area (GLA): 4,00,000 sq.ft Space for No of 4-wheelers: 300 Space for No of 2-wheelers: 250 No of Levels: 4 Levels connected with Escalators: 3 No of Lifts: 6 USP of the Mall: Very Strategically located Description of Catchment Area: MIG & EIG Average Footfalls on Weekdays: 6,000-8,000 Average Footfall on Weekends: 15,000-20,000

City: Pune Total Mall Area: 1,50,000 sq.ft Gross Leasable Area (GLA): 1,50,000 sq.ft Space for No of 4-wheelers: 200 Space for No of 2-wheelers: 100 No of Levels: 3 Levels connected with Escalators: 1 No of Lifts: 3 USP of the Mall: Shoppertainment Description of Catchment Area: MIG & EIG Average Footfalls on Week days: 4,000-6,000 Average Footfall on Weekends: 10,000-15,000

City: Pune Total Mall Area: 1,00,000 sq.ft Gross Leasable Area (GLA): 1,00,000 sq.ft No of Levels: 3 No of Lifts: 2 USP of the Mall: Food court and entertainment Description of Catchment Area: MIG & EIG Average Footfalls on Weekdays: 4,000+ Average Footfall on Weekends: 6,000-8,000

255

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MALL PROFILE

Landmark Builders

Neelkanth Sunshine Developers

Nirmal Lifestyle Ltd

THE HUB

HI ! LIFE

NIRMAL LIFESTYLE

Location: Nirlon Compound, Off. Western Express Highway, Goregaon (East), Mumbai Status: Operational, April 2004 Total Land Area: 200,000 Sq.ft Gross Leasable Area: 125,000 Sq.ft. No. of Levels: Lower Ground, Upper Ground + 3 Levels No. of Escalators & Lifts: 2 Escalators + 1 Lift Schemes to attract customers: Seasonal Promotions, Schemes etc. Catchments Area: This location is conveniently accessible to people from all part of the suburbs. It is reachable in am minimum driving distance of 5- 10 mins from Goregaon Station, Jogeshwari, a NSC Colony, Malad, Andheri, Santacruz and Vile Parle and other parts in the vicinity. Considerations in deciding RetailMix: Consistent effort to make it complete shopping destination.. TENANT MIX Anchor 1: Food Bazaar(Supermarket) Anchor 2: Vijay Sales( Consumer Electronics) Anchor 3: Mc Donaldls (Catering) Anchor 4: My Dollar Store Anchor 5: Movietime Multiplex Others Brands/Retailers: Welspun, Century, Biba, Venus Tapes, Oxemberg, Jashn etc

Location: Santacruz (west), Near the station City: Mumbai Total Land Area: 70,000 sq.ft. Total Mall Area: 2,10,000 sq.ft. Total Floor Space: 1,40,000 sq.ft. Gross Leasable Area: 1,40,000 sq.ft. Atrium area: 5,000 sq.ft Shopping Area: 1,12,000 sq.ft. Food Court Area: 6,500 sq.ft. seating area (excluding kitchen/pantry area) Leisure/ Entertainment: 10,000 sq.ft. Services Area: 5,000 sq.ft. Parking Area: 2 levels Space for No of 4-wheelers: 300+ No of Levels: 7 No of Escalators: 1 for going up and 1 for coming down at each of the shopping levels Levels connected with Escalators: 5 No of Lifts: 6 passenger lifts and 2 car lifts Kids Zone Area: 10,000 sq. ft. of podium garden besides the entertainment zones Description of Catchment Area: A heavily inhabited residential & shopping suburb, with an affluent population of over 10 lakhs in a radius of 3 kms. Right near the Santacruz station (W) which is alredy well known as a shopping hub. There is no organized retail or banquet or food court nearby which makes up for a classic combination required for a successful mall.

Location: Mulund (W) City: Mumbai Status: Operational Operational From (Planned): 2002 Total Mall Area: 4,52,711 sq.ft No. of Floors: G+1+2 Leased/ Sold Space Ratio: 95% Leasing Agents/ Companies: Please find the Worksheet below. CAM Charges: Rs. 18 per sq.ft/month Rental Model: Rs. 150 per sq.ft/month Atrium Area: 1,00,000 sq.ft Shopping Area: 2,50,000 sq.ft Leisure & Entertainment Area: 50,000 sq.ft Space for No of 4-wheelers: Approx 4,000 No of Escalators: 4 Competitive Advantage: 1) India's 1st Open Mall Concept. 2) Largest Glass Dome in South East Asia.

256

TENANT MIX

Anchor-1: Shoppers Stop Category/Format : Department Store Status: Operational Anchor-2: Mc Donald's Category/Format: Catering Status: Operational Anchor-3: PVR Category/Format: Multiplex Status: Operational Anchor-4: Shoprite Hyper Category/Format: Hypermarket Status: Operational Anchor-5: Fashion Station Status: Operational

Nirmal Lifestyle Ltd

NIRMAL LIFESTYLE Location: Mulund (W) City: Mumbai Status: Under Construction Total Mall Area: 7,66,606 sq.ft No. of Floors: UG+LG+1+2 Leased/ Sold Space Ratio: 75% CAM Charges: Rs.20 per sq.ft./month Rental Model: Rs.175 per sq.ft./month Atrium Area: 20,000 sq.ft Shopping Area: 4,00,000 sq.ft Food Court Area: 1,00,000 sq.ft Leisure/ Entertainment : 25,000 sq.ft Space for No of 4-wheelers: 4,000 No of Escalators: 6 Competitive Advantage: An iconic structure of Hotel TENANT MIX Anchor1: Hypercity Category/Format: Hypermarket Status: Booked Anchor2: Odyssey Category/Format: Leisure Status: Booked Anchor-: Pantaloon's Category/Format: Department Store Status: Booked Anchor4: Madura Garments Status: Booked Anchor5: Jumbo Status: Booked

(WEST)

MALL PROFILE The Phonenix

NIRMAL LIFESTYLE LTD Location: Mulund (W) City: Mumbai Status: Conceptual Stage Total Mall Area: 14,00,000 sq.ft

257

Location: Lower Parel City: Mumbai Status: Operational Total Mall Space: 9,58,320 sq.ft Gross Leasable Area (GLA): 9,00,000 sq.ft Shopping Area: 5,50,000 sq.ft Parking Area: 4,00,000 sq.ft USP of the Mall: Retail Mix and Location Average Footfalls on Weekdays: 25,000 Average Footfalls on Weekends: 60,000+

(WEST)

MALL PROFILE

Piramal Holdings Ltd

Prime Developers

CROSSROADS

CR2

PRIME MALL

Location: Maharastra City: Mumbai Status: Operational Operation From: August,1999 Total Land Area: 56,871 sq.ft Total Mall Area: 1,50,000 sq.ft Total Floor Space: 1,25,000 sq.ft Gross Leasable Area: 1,08,000 sq.ft Atrium area: 9,098 sq.ft Shopping Area: 85,103 sq.ft Food Court Area: 12,100 sq.ft Leisure/ Entertainment : 6,270 sq.ft Parking Area: Basement and terrace Space for No of 4-wheelers: 140 Space for No of 2-wheelers: 30 No of Levels: Gr plus 4 No of Escalators: 8 Levels connected with Escalators: Gr to 4 level No of Lifts: 4 Kids Zone Area: 8,500 sq.ft USP of the Mall: Exclusive brands, eg Ermenegildo Zegna, Piramyd Megastore, etc + China Garden (India's best Chinese restaurant), Jammin' (Family Entertainment Center) Any special schemes to attract customers: Events and promotions Considerations on choice of Location: Proliferation of HNI Customers Description of Catchment Area: South Mumbai Considerations in deciding RetailMix: Range, proposition uniqueness, profile of TG Average Footfalls on Week days: 12,500 per day Average Footfall on Weekends: 30,000 per day

City: Mumbai Status: Operational Operation From: November, 2004 Total Land Area: 61,000 sq.ft Total Mall Area: 1,00,000 sq.ft Total Floor Space: 75,000 sq.ft Gross Leasable Area: 85,000 sq.ft Atrium area: 2,000 sq.ft Shopping Area: 19,000 sq.ft Food Court Area: 30,000 sq.ft Leisure/ Entertainment : 26,700 sq.ft Parking Area: Basement and multilevel (7 levels) car park Space for No of 4-wheelers: 500 No of Levels: Basement plus Gr plus 10 No of Escalators: 4 Levels connected with Escalators: Gr to 2 level No of Lifts: 4 USP of the Mall: 5-Screen Multiplex (1400 seating), High end brands, Premium fine dining options, Large food court Any special schemes to attract customers: Events and promotions Considerations on choice of Location: Proliferation of HNI Customers Description of Catchment Area:South Mumbai Considerations in deciding RetailMix: Range, proposition uniqueness, profile of TG Average Footfalls on Week days: 9,000 per day Average Footfall on Weekends: 20,000 per day

City: Mumbai Location: Irla, Ville Parle West Catchment: Irla Total Mall Area: 1,30,000 sq.ft Positioning/USP: Amusement Park With Garden Anchors & Confirmed Tenants: Pantaloon, Tribhovandas Zaveri, Food Bazar

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Prozone Enterprises Pvt Ltd

(WEST)

MALL PROFILE Royal Palms India Pvt Ltd The Runwal Group-mumbai

PROZONE GOLDEN MALL

ROYAL PALMS

Location: Plot D-5/ P 80 Chikhalthana Road, MIDC, Aurangabad 431201 City: Aurangabad Status: Under Construction Planned launch : March, 2009 Total Investment in the Mall: 270 Crore Total Land Area: 1,88,62,110 sq.ft Total Built-up Area: 21,69,723 sq.ft No. of Floors: Basement, Lower Ground, Ground and First Floor Gross Leasable Area : 10,64,972 sq.ft GLA: GFA Ratio: 65:100 Leased: 100% Leased Mall Leasing Agents/ Companies: All IPC's and Local Brokers Rental Model: Rs. 85/- or 15% (whichever is higher) Atrium Area: 11,000 sq.ft Shopping Area: 9,85,553 sq.ft Food Court Area: 55,853 sq.ft Leisure/Entertainment: 19,466 sq.ft Services Area: 1,08307 sq.ft Parking Area: 12,34,822 sq.ft Space for No of 4-wheelers: 2800 Space for No of 2-wheelers: 800 No. of Escalators/lifts: 11 Pairs and 1 Pair of Travolators,10 Passenger and 10 Service Kids Play/Creche Area: 4,100 sq.ft Mall Management : In-house TENANT MIX Anchor1: Hypercity (Hypermarket) Area occupied: 1,54,484 sq.ft Anchor2: Shoppers Stop (Department) Area occupied: 83,500 sq.ft Anchor3: Westside (Department Store) Area occupied 37,060 sq.ft Anchor4: Pantaloons (Department)

Location: Goregaon (East) City: Mumbai Status: Under Construction Operational From: November, 2007 Total Investment in Mall: Rs.90 Crore Total Land Area: 98,01,000 sq.ft Total Mall Area: 3,00,000 sq.ft No. of Floors: Ground + 4 Gross Leasable Area: 1,50,000 sq.ft GLA: GFA Ratio: 50% Leased/ Sold Space Ratio: 60 / 40 CAM Charges : Rs.4.15 per sq.ft/month Atrium Area: 9,396 sq.ft Shopping Area: 2,40,000 sq.ft Food Court Area: 2,400 sq.ft Leisure/ Entertainment: 4,596 sq.ft Services Area: 60,000 sq.ft Parking Area: 83,948 sq.ft Space for No of 4-wheelers: 313 No of Escalators/lifts: 2/10 Kids Play/Creche Area: 2,500 sq.ft Promotion schemes: In Process Catchment Area: Royal Palms & Mumbai Suburbs Other shopping centres/malls in 6 km radius: Hub / Rodas / Galleria Average Footfall on Week Days & Weekends: 6,000 & 13,000 Mall Management : In-House

259

R MALL-MULLAND Location: L.B.S. Road, Mulund City: Mumbai Status: Operational March 2003 No. of Floors: 4 Levels Gross Leasable Area: 3,50,000 sq.ft CAM Charges : Currently @Rs15/- per sq ft per month on Chargeable Area Rental Model: Fixed Space for No of 4-wheelers: 150 Space for No of 2-wheelers: 600 No of Escalators: 6 No. of Lifts: 5 Passenger Elevators,2 Service Elevators Kids Play/Creche Area: Yes Promotion schemes : Yes Considerations on choice of location: Primary & Secondary Catchment, Accessibility, Frontage Catchment Area: Mulund, Thane, Bhandup, Airoli Other shopping centres/malls in 6 km radius: Eternity, Nirmal Mall, Dearms Mall, Magnet Mall, Color Space Average Footfall on Week Days: 8,700 Average Footfall on Weekends:

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MALL PROFILE

The Runwal Group-mumbai

R CITY CENTRE

R MALL-ODEON

R MALL-THANE

Location: Ghatkopar (West, Mumbai) City: Mumbai Status: Under Construction Operational From (Planned):Phase 1:- Mid 2008, Phase 2:- Mid 2009 No. of Floors: 4 Levels Gross Leasable Area: 11,22,421 sq.ft CAM Charges : Proposed @Rs15/per sq ft per month on Chargeable Area Rental Model: Fixed Space for No of 4-wheelers: 400 Space for No of 2-wheelers: 2,600 No of Escalators: 26 No. of Lifts: 18 Passenger Elevators, 9 Service Elevators Kids Play/Creche Area: Yes Promotion schemes: Yes Catchment Area: Ghatkopar, Powai, Chembur Other shopping centres/malls in 6 km radius: Market City, Kohinoor City, Hiranandani Galleria, Magnet Mall, Huma Mall, Dreams Mall, R Mall Odeon TENANT MIX Anchor1: Lifestyle( Department Store) Status/Area: Booked/ 70,000 sq.ft Anchor2: Croma Status/Area: Booked/ 25,000 sq.ft Anchor3: Pantaloon Status/Area: Booked/25,000 sq.ft Anchor4: Big Bazaar(Hypermarket) Status/Area: Booked/70,000 sq.ft Anchor5: Fitness First (Fitness) Status/Area: Booked/20,000 sq.ft Anchor6: Adlabs (Multiplex) Status/Area: Booked/60,000 sq.ft Anchor7: Shoppers Stop Status/Area: Booked/1,10,000 sq.ft

Location: Ghatkopar (East), Mumbai City: Mumbai Status: Under Construction Operational From (Planned): Septmber, 2007 No. of Floors: 6 Levels Gross Leasable Area : 65,659 sq.ft CAM Charges: Proposed @Rs15/- per sq ft per month on Chargeable Area Rental Model: Fixed Space for No of 4-wheelers: 50 Space for No of 2-wheelers: 150 No of Escalators: 6 No. of Lifts: 4 Passenge Elevators, 2 Service Elevators Kids Play/Creche Area: Yes Promotion schemes : Yes Considerations on choice of location: Primary & Secondary Catchment Accessibility, Frontage Catchment Area : Ghatkopar, Chembur Other shopping centres/malls in 6 km radius: Platinum Mall, Neelyog Mall, R City Centre, Magnet Mall, Hiranandani Galleria, Huma Mall Mall Management : In House

Location: Godhbunder Road City: Thane Status: Under Construction Operational From (Planned): Mid 2008 No. of Floors: 4 Levels Gross Leasable Area : 2,60,000 sq.ft CAM Charges: Proposed @Rs15/- per sq ft per month on Chargeable Area Rental Model: Fixed Space for No of 4-wheelers: 150 Space for No of 2-wheelers: 300 No of Escalators: 6 No. of Lifts: 3 Passenge Elevators 3 Service Elevators Kids Play/Creche Area: Yes Promotion schemes : Yes Catchment Area: Thane and Surrounding Areas Other shopping centres/malls in 6 km radius: Cinewonder Mall, Lake City, Megapolis, Eternity

TENANT MIX

Anchor1: PVR Category/Format: Multiplex Status: Booked

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TENANT MIX

Anchor1: Le Marche(Hypermarket) Status/Area: Booked/65,000 sq.ft Anchor2: Pantaloon Home Store Status/Area: Booked/95,000 sq.ft Other Brands/Retailers: Jashn, OLA, Le Marshe, Welspun, Bombay Dyeing, UCB Hobby Ideas, Blackberrys, ZOD, Zodiac, Adams, M & B, Lap-Kok, GKB, BIBA, Archies, Harra, Reynolds, Archies, Finger Chip, Spykar, Planet M, NIKE, Adidas, Lilliput, 365-Ruffkids, Timex, Oxemberg, John Player, Reid & Taylor, Koutons, Home Solution.

Satra Property Developers Pvt Ltd.

THE DREAM MALL Location: Bhandup-W City: Mumbai Total Land Area: 8,00,000 sq.ft Gross Leasable Area (GLA): 6,00,000 sq.ft Atrium area: 40,000 sq.ft Parking Area: 1600 cars USP of the Mall: Snow World Description of Catchment Area: Kanjur, Powai, Thane,Bhandup, Ghatkopar Retail Mix: 10% Food, 13% Entertainment, 15% Anchors and 60%

(WEST)

MALL PROFILE Wadhwa Group

DREAM THE MALL

RAGHULEELA MEGA MALL

Location: Borivili -W City: Mumbai Total Land Area: 4,50,000 sq.ft Gross Leasable Area : 3,00,000 sq.ft Parking Space: 700 cars USP of the Mall: Amusement Park Description of Catchment Area: Borivili, Malad, Kandivili,South GujaratVapi, Surat Retail Mix: 10% Amusement, 12%Food, 20% Anchor , 58% Fashion and Retail

Location: Kandivili City: Mumbai Status: Operational Operational From: 2005 Total Land Area: 90,000 sq.ft Total Mall Space: 4,50,000 sq.ft Gross Leasable Area: 3,75,000 sq.ft Shopping Area: 2,50,000 sq.ft Atrium Area: 17,500 sq.ft Food Court Area: 20,000 sq.ft Leisure/Entertainment : 52,000 sq.ft Parking Area: 80,000 sq.ft No of Levels: Basement+ Ground+4 No od Escalators: 12 No of Lifts: 7

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MALL PROFILE

Satra Property Developers Pvt Ltd.

Shree Laxmi Developers

DREAM THE MALL

PRIME MALL

SEJ MALL

Location: Vashi City: Mumbai Total Land Area: 6,00,000 sq.ft Gross Leasable Area (GLA): 5,00,000 sq.ft Description of Catchment Area: Kharghar, NerulL, Vashi, Belapur, Thane, Chembur Retail Mix: 10% Amusement, 12%Food, 20%Anchor , 58%Fashion

Location: Vileparle-W City: Mumbai Total Land Area: 1,30,000 sq.ft Gross Leasable Area (GLA): 1,00,000 sq.ft Description of Catchment Area: Vileparle, Lokhandwala, Juhu, Andheri Retail Mix: 10%Food, 5%Amusement, 65% Fashion and Retail, 20% Anchors

City: Malad , Mumbai Location: Intersection of S.V. Rd Nad Marve Rd, Malad West Catchment: Malad Total Mall Area: 1,00,000 sq.ft Gross Leasable Area: 60,000 sq.ft Positioning/USP: location and accessibility Anchors & Confirmed Tenants: Pizza Hut Tenant Mix (Percentage of fashion, food and entertainment retail): Retail: 55% Food and Entertainment: 25% Office Space: 20%

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Shyam Buildcon Pvt Ltd

STAR MALL Location: Opp. Havmor Restaurant, C. G. Road, Ahmedabad. Total Land Area: 65,000 sq.ft Total Mall Area: 2,50,000 (approx) sq.ft Gross Leasable Area: 1,35,000 sq.ft Atrium Area: 8,000 sq.ft Food Court Area: 11,000 sq. ft Leisure/ Entertainment: 14,000 sq. ft Services Area: 5,000 sq ft Parking Area: 1,00,000 sq.ft No. of Levels: Ground + 3 Floors No. of Escalators & Lifts: 8 Escalators, 3 Passenger lifts & 2 service lifts Crèche & Kids Zone Area: 800 sq.ft USP of the Mall: Very Prime Location, Premium profile Tenant Mix with all conveniences Average Footfalls on Weekdays & Weekends: 1,000 / 4,000 Considerations in deciding RetailMix: Premium segment as it shall be first Shoppers Stop for Ahmedabad. Any other details: Low running costs have been kept in mind.

Silver Moon Constructions Pvt Ltd.

(WEST)

MALL PROFILE Suyojit Infrastructure Ltd

MEGA MALL

THE OZONE MALL

City: Mumbai Location: Nr. Lokhandwala Complex, New Link Road Catchment: Andheri, Lokhandwala, Malad, Goregoan Total Mall Area: 5,00,000 sq.ft

Location: Near BYK College, College Road, Nashik Total Built-up Area: 1,00,000 sq.ft Gross Leasable Area: 1,00,000 sq.ft Shopping Area: 1,00,000 sq.ft Food Court Area: 20,000 sq.ft Leisure & Entertainment Area: 5000 sq.ft Service Area: 5000 sq.ft Parking Area: 30,000 sq.ft No of Levels: Basement and Ground No of Escalators and Lift: 4 Lifts Average Footfalls on Weekdays: 10,000 sq.ft Average Footfall on Weekends: 15,000 sq.ft Any special schemes to attract customers: Adjoining Big-Bazar

Gross Leasable Area: 3,60,000 sq.ft. Positioning/USP: The glass dome atrium Anchors & Confirmed Tenants: Le Marche Hypermarket Mall USP: First time in India introducing moving walks (escalator to carry your trolley until the car parking space), all the escalators and lifts are of Mitsubishi and above the atrium there will be a space frame with glass waves (which will be for the 1st time in Asia).

TENANT MIX

Anchor 1: Shoppers Stop Status: Booked Area Occupied: 50,000 sq.ft Category/Format : Departmental store Anchor 2: Time Zone Status: Booked No. of Floors: Top Floor Area Occupied: 14,000 sq.ft Category/Format: Leisure

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KEY FINDINGS

The industry has come a long way, albeit in a very short span of time. The 126 percent growth in mall activity in 2004 was just the start-up of the engine following which growth rate climbed down to 99 percent in 2005 and further fell to 61 percent in 2006. All this while the solid foundation of the Indian Shopping Centre industry was being laid, mall space had increased from 8.4 million sq.ft in 2005 to 16.7 million sq.ft in 2006.

NORTH ZONE FINDINGS ¡ Total supply of shopping centre space in the Northern region by end-2007 will be 16.75 million sq.ft from 69 operational malls, which will be an increase of nearly 85.7 percent over the space available in end-2006. ¡ Till August 2007 only 53 malls were operational with 11.43 million sq.ft of built-up floor space and a good 16 projects are in the completion stage hoping to make it by the end of 2007.

In the second edition of the Malls in India 2005 research publication we projected a growth of 97.4 percent in 2005 and 61.7 percent in 2007, with 32.7 million sq.ft and 54.3 million sq.ft of mall space for the two years respectively. Today, when we take stock of the situation, we find that the clock is back by one year, mainly because several announced projects did not take off.

¡ The number of operational malls in the North zone will increase from 69 in 2007 to 195 by 2011 ¡ Average ratio of land area to mall space for Delhi and the NCR is as 1 : 2.04, while for Jaipur it is 1 : 3.17; for Ludhiana it is higher at 1 : 3.64; in Lucknow it is 1 : 2.48 and the land to mall space ratio for Sonepat is the lowest at 1.

The earlier projection of 87.8 million sq.ft of mall space by year 2007 is now likely to be achieved in year 2008 when there will be more than 290 operational malls. The positive side of the picture is that the growth rate was projected to be around 62 percent in 2007, which will now be in the vicinity of 76 percent. Based on the status of mall projects under progress, this growth will further accelerate to 85 percent in 2008, which will ensure availability of more than 154 million sq.ft of quality retail space in 2009. The market will be at a mature height by year 2010 with nearly 205 sq.ft of mall space.

WEST ZONE FINDINGS

Even modest growth thereafter should be able to push the mall space supply in the country to a level beyond 350 million sq.ft by 2015, with more than 750 malls operational by then.

¡ Total supply of shopping centre space in Western India by end-2007 will be 20.38 million sq.ft from 75 operational malls, which will be an increase of nearly 75 percent over the space available in end-2006

¡ For Delhi NCR malls the ration of mall space to GLA is as 1 : 0.67, as compared to 1 : 0.94 in Sonepat, 1 : 0.65 in Lucknow, 1: 0.42 in Ludhiana, 1 : 0.82 in Jaipur and 1 : 0.76 is the average in the rest of the northern cities.

This study also identifies 36 mega mall projects, each of these with a built-up floor space of more than 10 lakh (one million) sq.ft. The South zone accounts for 15 of these projects, the prominent ones being the Shobha Global Mall in Bangalore (29.9 lakh sq.ft), DLF Bangalore (36 lakh sq.ft), DLF Hyderabad (26.5 lakh sq.ft) and a project by Kshitij Investment in Chennai (23 lakh sq.ft).

¡ As on August 2007 only 47 malls were operational with 13.1 million sq.ft of built-up floor space and a good 33 projects are in the completion stage hoping to make it by the year-end. ¡ Rate of growth in shopping centre space in the Western region, which was up to 2006 largely confined to Mumbai and its suburbs, is now declining.

Prominent among the 10 mega mall projects in the West zone are DLF’s mall in Lower Parel, Mumbai (26.15 lakh sq.ft), Prozone Golden Mall in Aurangabad (21.7 lakh sq.ft) and the Mumbai-Kurla Mall project by Kshitij (26 lakh sq.ft). There are 10 such mega mall projects identified in the North zone, which include the Mall of India at Gurgaon by DLF Retail Developers (55.23 lakh sq.ft).

¡ From nearly 250 percent growth in mall space in 2005, it declined to a 118 percent growth in 2006 and will settle to around 75 percent growth in 2007. ¡ Number of operational malls in the West zone will increase from 75 in 2007 to 137 by 2011. 335

¡ Newer developments are mega projects with about 10 lakh sq.ft and above of mall space; and such projects are taking roots in the region’s tier-II cities as well.

¡ Besides Bangalore, Hyderabed and Chennai, mall development in the South has also picked up in cities like Kochi (one operational and five by 2010) and Mysore (one operational and four by 2010). Coimbatore will have two malls by 2009, while Vijayavada will have two operational malls a year earlier.

¡ From 20.38 million sq.ft in 2007, mall space will more than double to nearly 55 million sq.ft by 2011. ¡ Mumbai’s Crossroad Mall from Piramal Holdings was among the earliest of the malls in India.

¡ Average ratio of land area to mall space for Bangalore is as 1 : 2.44, while for Hyderabad it is 1 : 4.65; for Chennai it is slightly lower at 1 : 3.66; in Kochi it is 1 : 3.52 and the land to mall space ratio is again closer to that of Bangalore in Mysore (1 : 2.69).

¡ Average ratio of land area to mall space for Mumbai is as 1 : 1.79, while for Pune it is 1 : 1.5 ; for Ahmedabad it is higher at 1 : 2.95 ; in Nagpur it is 1 : 2.61 and the land to mall space ratio for Indore is 1 : 2.84; while the average for the other cities is 1 : 2.02.

¡ Bangalore malls are better placed with a ration of mall space to GLA as 1 : 0.48 as compared to 1 : 0.53 in Hyderabad, 1 : 0.63 in Chennai and 1 : 0.76 in Kochi.

¡ For malls in Mumbai the ration of mall space to GLA is as 1 : 0.65 as compared to 1 : 0.78 in Pune, 1 : 0.597 in Ahmedabad, 1: 0.66 in Nagpur, 1 : 0.85 in Indore and 1 : 0.66 is the average for the rest of the Western cities.

¡ Projected shopping centre space in South India by 2007-end, Bangalore will account for 39 percent; followed by Chennai (33 percent), Hyderabad (15 percent) and Mysore accounting for nearly eight percent of the mall space pie, respectively.

¡ Till 2006 the share of Mumbai in the total mall space available in the Western zone was a dominating 73 percent – the domination continues but the share is to get reduced to 67 percent by end-2007.

EAST ZONE FINDINGS ¡ The East zone had its first mall in 2002 with The City Centre.

¡ Major gainers are Pune, whose share will increase form five percent a year ago to seven percent, while Ahmedabad’s share doubles from four percent to eight percent and Nagpur increases its share from six to eight percent.

¡ By the end of this year there will be a total of 14 malls operational in the East, out of which nine are located in Kolkata and five in the other major urban centres.

SOUTH ZONE FINDINGS

¡ Together, these 14 malls will offer 11.91 million sq.ft of quality retail space.

¡ Total supply of shopping centre space in South India by end-2007 will be 19.02 million sq.ft, accounting for an increase of over 12 million sq.ft of mall space by end-2006.

¡ A total of 47 malls will be operational in the East by 2010. ¡ Besides Kolkata, maximum activity on this front is happening in Asansol, Guwahati, Raipur and Siliguri.

¡ The rate of growth in shopping centre space (which was only 37 percent in 2006 over the previous year) is now going to see a whopping 178 percent increase in 2007!

¡ Average ratio of land area to mall space for Kolkata is as 1 : 2.24, while for the other urban centres it is as 1 : 2.08. ¡ Kolkata malls have more movement space within (1 : 0.67) as compared to the other centres, where for every one square feet of mall space there is slightly larger GLA (1 : 0.69).

¡ From 68.4 lakh sq.ft in 2007, mall space will increase to nearly 476 lakh sq.ft in 2010. ¡ Chennai has the distinction of giving the country its first modern mall, Spencer’s Plaza, way back in 1990. 336

CONTRIBUTORS ALAN A ALEXANDER Alan A. Alexander is the president of Alexander Consultants for over twenty five years specialising in the Management, Leasing and Consulting for income producing properties through out the Western United States and South America. He is the former senior vice president of Fox & Carskadon Management Corporation with a responsibility for a portfolio of commercial and residential properties worth in excess of US$300 million dollars in four Western States. As Director of Leasing for Fox & Carskadon Financial, Mr Alexander was responsible for the leasing of all shopping centres owned by the company throughout the United States with a total portfolio in excess of US$800 million dollars. Mr Alexander was a member of the National Faculty of the Institute of Real Estate Management as a senior instructor for both Shopping Centres and Office Buildings (1982-1998). In addition to classes taught in almost every major city in the United States, he has instructed in Singapore, Canada, Mexico, Malaysia, Taiwan, Hong Kong, the Philippines, Poland, China, Thailand, Holland, India, Argentina, Turkey and Jamaica.

AMIT BAGARIA & SUSMITA DASGUPTA Amit Bagaria is Chairman and CEO of Asipac Group, India's leading provider of strategy, ideas, concepts, planning and marketing solutions to the real estate industry, and India's No.1 real estate marketing company. Since 1996, Asipac has worked on projects of ~356 million square feet, valued at more than Rs.88,000 crores, including Mall/retail projects of 19.3 million square feet. Currently, Asipac has sole selling rights for projects of 57.3 million square feet, valued at over Rs.10,400 crores. Susmita Dasgupta is an MBA from the Great Lakes Management Institute and Asst Vice President in the Chairman's Office at Asipac.

ABOUT ASIPAC Since 1996, Asipac has provided strategies, concepts, planning and marketing solutions for projects of >357 million sq.ft, with value of >Rs.885 billion. Today, Asipac is India's No.1 property marketing company, with sole-selling rights for >57 million sq.ft with a value of >Rs.101 billion. Asipac has 14 large and four small ongoing projects in 10 cities. Our large projects have an average size of 3.05 million sq.ft and value of Rs.6.9 billion. We are constantly shaping thought and building value. We were the first in India to: ●

Plan and Lease a Shopping Mall of over one million square feet

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Lease retail spaces on a 'transparent' Actual Carpet Area basis

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Conceptualise, Plan and Sell themed villas of Rs.5-17 crore each

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Use printed Price Lists (with Validity Dates) for marketing Homes

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Sell Homes on MRP, with no hidden costs

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Theme a multi-product SEZ or a Business Park

ANSHUMAN MAGAZINE Anshuman Magazine is the Managing Director of CB Richard Ellis, the world's largest Real Estate consulting firm, for the South Asia region. His association with the real estate industry began in the year 1994, with him being instrumental in setting up operations for CB Richard Ellis practice in the Indian subcontinent. In his current role, Anshuman has led the organization with a consistent and undivided focus, resulting in CB Richard Ellis emerging among the largest Real Estate service provider in India. He has been involved in some of the largest and most prestigious advisory assignments in the post liberalization era in India, including the privatization of the four international airports (across the four metropoliton cities in India) and disinvestment exercise for a portfolio of 26 Government owned hotel properties. During his tenure, he assumed the lead role in assisting large number of Indian, American and other Multinational Corporates to establish operations in India Under his guidance, CBRE has successfully delivered several projects across India to provide effective real estate solutions for a diverse range of projects including IT Parks, Special Economic Zones, Optimum Utilization of Real Estate Assets, Urban Infrastructure Developement, Industrial Estate Projects, Commercial and Housing Projects, Hotels, IT / ITES / BPO, Retail and Entertainment, and townships etc. He has been advising various international real estate financial institutions and private equity funds for investment in Indian real estate market.

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ANKUR SRIVASTAVA

ABOUT DTZ DTZ is a leading global real estate advisory and consultancy firm. More than 10,000 staff advise and act for leading multi-national companies, major financial institutions, governments, developers and investors in 40 countries around the world. With 200 offices in 163 cities, DTZ provides integrated services in corporate consulting, agency, brokerage, valuation, corporate finance, property management and research. In the Americas, DTZ delivers capital markets services and solutions to investors through DTZ Rockwood, and occupational real estate solutions to multi-national corporates through our US alliance with The Staubach Company. DTZ Holdings plc, which is the largest shareholder in the DTZ operations, is a publicly quoted company, listed on the London Stock Exchange since 1987.

Ankur Srivastava is the Managing Director of DTZ, India. Ankur has more than eleven years of experience in real estate consulting, transactions and corporatefinance advisory for several corporate and investor clients across the globe. His diverse experience includes pioneering work on some of the largest IT infrastructure parks and townships in the Indian sub-continent. He has worked in Singapore, UK and has been involved with advisory, transaction and investment assignments across the South and South-east Asian property markets.

DTZ has an enviable presence in the important strategic markets of North East and South East Asia. DTZ set up operations in India in the year 2004. With the opening of offices in Bangalore, New Delhi and Mumbai and a project office in Chennai, DTZ is now placed to provide an integrated service to global corporates throughout the subcontinent.

ABHILASH LAL

SHUBHENDU SAHA

GAUTAM SARIN

Abhilash Lal is Director North India and Head of Research & Consulting with DTZ India. Abhilash has more than 18 years of experience handling senior roles in business development, strategy and operations.

Shubhendu Saha is Senior Manager with the Investment Advisory group having more than seven years of experience as a management consultant in the field of urban & transport infrastructure including real estate.

Gautam Sarin is Assistant Manager with the Research and Consulting team in DTZ India. Gautam has varied experience in real estate research domain and has also been involved in numerous consulting assignments.

ANUJ PURI As Chairman & Country Head of Jones Lang LaSalle Meghraj, Anuj Puri is responsible for the overall direction, strategy and growth of the firm, which is the largest premiere real estate services firm in India. He is a respected leader in the Indian real estate industry and speaks regularly as a subject matter expert to bring awareness of Indian real estate opportunities both within India and across the globe. In this capacity, Anuj Puri oversees a team of over 2,800 staff in 10 cities across India. He enjoys strong relationships with both private investors as well as local and global corporates and interacts regularly with key clients to uncover opportunities in the rapidly moving Indian market.

ABOUT JONES LANG LASALLE MEGHRAJ Jones Lang LaSalle Meghraj results from a landmark merger between the former Trammell Crow Meghraj and Jones Lang Lasalle. It is the pre-eminent and largest real estate services provider in India. The firm services international investors, corporates and local clients who are growing rapidly, both in India and globally. Jones Lang LaSalle Meghraj provides a strong and deep pool of management expertise with a staff of over 2800, and the largest geographic footprint across India with offices in ten cities. This gives the firm a matchless competitive edge. The company expects to exceed USD 100 million in revenue in the next two years. It represents a robust platform of service delivery, coverage and depth for clients. Jones Lang LaSalle Meghraj specializes in providing real estate advice to corporates and institutions who have either recently arrived in the country or already have an established presence. It is the range of international real estate experience supported by a thorough understanding of local and regional markets in India that allows us to advice on how a property portfolio can best contribute to a Corporation's overall profitability. With a team of over 2800 professionals, carefully selected for their capability, professionalism and the ability to appreciate clients' requirements, Jones Lang LaSalle Meghraj services clients in ten key cities in India. It currently manages 44 million square feet of real estate space. Jones Lang LaSalle Meghraj operated in the following Indian cities: ● ● ● ● ●

Bangalore Chandigarh Chennai Coimbatore Hyderabad

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Kochi Kolkata Mumbai New Delhi Pune

PHILIP EVANS Philip Evans is a Partner and Head of Retail, Greece, Cushman & Wakefield. With over 20 years of experience, Philip Evans is a recognised Retail Asset Management specialist. Based in Athens, Philip is the Head of Retail services in Greece and is responsible for the firms International Retail Management services. As head of all retail services, including leasing, investment, development and Asset management, he also oversees the firm's retail development and Asset Management activities in the emerging markets of Central and South-Eastern Europe. Prior to relocating to Athens in 2006, Philip was based in London as Head of Retail Asset Management, Europe. He has been responsible for delivering and managing some of the largest and most prestigious retail developments throughout Europe. Philip is actively involved with the International Council of Shopping Centres (ICSC) and is the Vice President of the Greek committee. He was previously a Board member of the British Council of Shopping Centres (BCSC).

ABOUT CUSHMAN & WAKEFIELD Cushman & Wakefield is the largest privately held premier real estate services firm in the world. Founded in 1917, the firm today has 201 offices in 55 countries around the globe with over 12,000 talented professionals. Cushman & Wakefield is involved in every stage of the real estate process, from strategy to execution, representing clients in buying, selling, financing, leasing, managing and valuing buildings that shape the skylines of the world; and provide strategic planning and research, portfolio analysis, site selection, space location, project and property management services. ● ● ● ● ● ● ● ● ● ● ● ● ●

Acquisition Retail Advisory & Agency Appraisal Demographic Studies Disposition Facilities Management Land & Industrial Agency Investment Advisory Investment Sales Landlord Representation Lease Advisory Commercial Agency Location & Site Selection

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Market Analysis Occupancy Analysis Project Management Property Management Research Strategic Account Management Strategic Advisory Tenant Representation Industrial Project Management Construction Management Residential Agency Valuation Development Consulting

We strongly believe in maintaining integrity and achieving excellence in all that we do, creating a name that our clients would always like to associate with.

OFFICES New Delhi Cushman & Wakefield India B-6/8, Commercial Complex Safdarjung Enclave New Delhi 110 029 Tel : 91 11 26192512-17 Fax : 91 11 26195829

Kolkata Cushman & Wakefield India Apeejay House, Block A, 8th Floor 15 Park Street Kolkata 700 016 Tel : 91 33 2217 1136 Fax : 91 33 2217 1137

Mumbai Cushman & Wakefield India First Floor, Mafatlal House Padma Bhushan H. T. Parekh Marg Churchgate, Mumbai 400 020 Tel : 91 22 2281 3317 / 19 / 20 Fax : 91 22 2202 5165

Bangalore Cushman & Wakefield India 578, Syndicate Bank Road Indiranagar, Ist Stage Bangalore 560 038 Tel : 91 80 2521 9631 / 9756-8 Fax : 91 80 2521 9755

Gurgaon Cushman & Wakefield India 14th Floor, Tower C Building No. 8, DLF Cyber City Gurgaon 122 002 Tel: 95 124 469 5555 Fax : 91 124 469 5566

Chennai Cushman & Wakefield India 'Paramount Plaza, 5th Floor #7A/22 Nungambakkam High Road Chennai 600034 Tel: 91 44 4299 5555 Fax : 91 44 4299 5565

Hyderabad Cushman & Wakefield India Suite No. 201, DBS House. 1-7-43-46, Sardar Patel Road Secunderabad 500 003 Tel : 91 40 2784 6970 Fax : 91 40 2784 6855

Pune Cushman & Wakefield India Unit No. 804-B, 8th Floor, B Wing ICC Trade Towers Senapati Bapat Road Pune 411 016 Tel : 91 20 4003 2223-26 Fax : 91 20 4003 2227

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N V SIVAKUMAR NV Sivakumar is the Executive Director, PricewaterhouseCoopers Private Limited, based in Bangalore. This Chartered Accountant also has a Commerce degree from the Indian Institute of Management and Commerce, Hyderabad. Sivakumar has over two decades of experience in PwC, assuming varied roles within the Assurance and Advisory Services practice disciplines. Based in Bangalore, he has been the lead partner for several of the firms key clients. He also has an international experience having worked in PwC Offices in the Middle East and London for over three years. Sivakumar has been lead Partner for several of the firm's key accounts, including, Britannia Industries Limited (Danone Group), Birla 3M Limited (3M Inc.,), Volvo India Private Limited, ITC Filtrona Limited, Parry Monsanto Seeds Private Limited, to name a few. He has also audited/advised large MNCs in the Retail and Consumer Industry sectors, including Metro Cash and Carry, Landmark Group, Britannia Industries, UB Group, etc.

ABOUT PRICEWATERHOUSECOOPERS PricewaterhouseCoopers Pvt. Ltd. (www.pwc.com/india) provides industry - focused tax and advisory services to build public trust and enhance value for its clients and their stakeholders. PwC professionals work collaboratively using connected thinking to develop fresh perspectives and practical advice. Complementing our depth of industry expertise and breadth of skills is our sound knowledge of the local business environment in India. PricewaterhouseCoopers is committed to working with our clients to deliver the solutions that help them take on the challenges of the ever-changing business environment. PwC has offices in Bangalore, Bhubaneshwar, Chennai, Gurgaon, Hyderabad, Kolkata, Mumbai, New Delhi and Pune. “PricewaterhouseCoopers”, a registered trademark, refers to PricewaterhouseCoopers Private Limited (a limited company in India) or, as the context requires, other member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.

PANDRANG ROW Pandrang Row is a Partner and Chief Brand Communication Officer at Vertebrand Management Consulting, one of India's leading brand consultancies. Prior to this assignment he has worked with various advertising agencies including J Walter Thompson, McCann Ericsson and Ogilvy & Mather.

ABOUT VERTEBRAND Vertebrand helps its clients to grow their business by helping then grow their brands. The company has developed a range of consultancy products that cover every aspect of brand building: Vertebrand has a real edge that comes from the composition of its personnel. Thanks to a unique combination of left-brain and right-brain thinking the brand consultancy has the capacity to add a creative edge that stems from a scientific core. Professionals at Vertebrand largely comprise MBAs from IIM-C, IIM-A, Symbiosis and international institutions. They also have people with a background of branding and marketing creativity from some of India's top advertising agencies.

SHILPA MALIK Shilpa Malik is a senior professional in the development industry, currently, the General Manager of Select Infrastructure Pvt Ltd, a niche development firm, she has developed the 1.3 million Sq.Ft. SELECT CITYWALK, a US$100 million Shopping Centre and Mixed-Use Development in Saket, South Delhi. She has also authored the first ever book on the Indian Retail and Shopping Centre Industry, The IMAGES Malls in India, which was released in 2004 and circulated industry-wide in India and overseas.

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