Retail India Headlines
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Prozone buys stake in 2 realty firms
Prozone Enterprises, a subsidiary of the retailer Provogue India, has acquired majority stakes in special purpose vehicles (SPVs) floated by Hagwood Commercial Developers and Omni Infrastructure to develop malls in Indore and Nagpur, respectively. Though the financial details of the deal are not known, Prozone, a retail real estate development company, is aiming to build 50 Prozone shopping malls with more than 12 million sq ft of modern retail space and an estimated investment of $1 billion over the next five years. Prozone and UK-based mall property developers Liberty International PLC had set up a JV to develop and manage malls across the country. According to the agreement, Liberty International will hold a 25 per cent stake in the JV with the rest held by Prozone. The JV will focus on developing mall properties across tier-II cities in India. Prozone had also entered into a joint venture agreement with the Omaxe Group to develop malls. The company was also in talks with other developers such as the Rustamji Group and Jaypee for other joint ventures.
Collage Group to come up with retail venturesHindustan Times
Delhi-based Collage Group has announced two semi premium retail destinations in Jalandhar and Amritsar with a combined retail space of over 1 million sq ft with the total investment Rs 400 crore to cater to Punjabis. The Viva College Mall in Jalandhar designed by RSP Akitek of Malaysia is located on the 100 ft wide NH-1, main GT Road. Construction is in full swing for this 700,000 sq ft integrated multiplex, retail and entertainment complex and the mall is expected to be ready by April 2009. Already 80 percent of the space is leased. The Viva Collage Mall in Amritsar is a sprawling 600,000 sq ft retail; leisure and entertainment centre on the Ajnala road close to the Raja Sansi International airport and is expected to be ready by October 2009.
Future group, real-estate firm to invest Rs.850 crore on Pune Enclave
The Hindu Business Line
Future Group, the parent company of India’s largest listed retailer Pantaloon Retail (India) Ltd, and a local real-estate firm will invest around Rs 850 crore to build an entertainment-cum-commercial enclave in Pune to tap the growth in the country’s booming commercial space and retail sectors. The 2.8 million sq. ft project called Market City will have malls, a 300 to 350-room business hotel, entertainment space and offices and is expected to be completed in phases by mid 2010. Future’s real-estate private equity fund, Kshitij Investment Advisory Co., and Pune-based developer City Group will invest Rs180 crore each with the remaining Rs490 crore being funded through long-term debt from banks and financial institutions. The project will be designed by Walker Architects of New Zealand and will be funded through a debt-to-equity ratio of 1.5:1, he added. This will be the seventh Market City project from Kshitij after six others in Mumbai, Bangalore, Chennai and Hyderabad with each project costing between Rs 500 crore and Rs 1,200 crore including the cost of the land.
Parsvnath to invest Rs.160 crore to build Metro Mall
The Hindu Business Line
Parsvnath Developers announced that it would invest Rs 160 crore over the next three years to construct a metro station-cum-shopping mall near the Commonwealth Games village site in the National Capital. The metro station-cum-mall is spread over 7.3 acres and about 3.65 lakh sq ft of retail space would be developed. This will be the 12th mall, which Parsvnath would be developing at metro stations, owned by Delhi Metro Railway Corporation, on a build-operate-transfer basis. This would be the second station it would be constructing for DMRC. Parsvnath is bullish on metro mall concept and hopes the rental income from malls would contribute substantially to its top-line by 2009-10.
Mantri developers retail real estate push gets biggerBusiness Standard
Bangalore-based Mantri Developers have taken up Rs 310 crore worth of investment to build two malls in Bangalore — one at Malleswaram’s Sampige Road (premises of old Raja Mills) at a cost of Rs 250 crore and another at J P Nagar at Rs 60 crore (old BPRL factory premises). The mall on Sampige Road is an 8-lakh square feet project and houses a multiplex, hypermarket and a few large department stores in addition to branded retail stores. The mall at J P Nagar is expected to house well known brands without any anchor tenants. The company shot to fame when Morgan Stanley’s real estate investment arm invested about $68 million and picking up 10 percent stake in the company. With a more diverse portfolio of projects and properties, the company is aiming an IPO in 2 to 3 years. It is believed that the company has lined up Rs 900 crore worth of investments to take up residential and commercial projects. The company has taken up six projects totaling 12 million square feet in Bangalore and expected to launch projects in Chennai (one million square feet) and Hyderabad (two million square feet) this year. In commercial office space, Mantri Developers is putting up a 1.5 million square feet IT park in Pune.