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Sep, 01 2005


Mall developers are expanding their presence in the country in B-class cities owing to favourable real estate conditions Seeking the success of a mall in a competition free environment, assures comfortable level of footfalls and eagerness of consumers to

SHOPPING malls and multiplexes, which were supposed to be essentially a metropolitan feature, are now foraying out of metros. As the metros get saturated with shopping malls, B-class cities are growing into a hub of corporate biggies. Several developers are now heading towards these cities and venturing to invest in real estate development to reap in rich harvests. "Since the big metros are having more supply than demand the obvious choice of builders is to shift from A-class to B-class," says Mr Pawan Garg, managing director, Dynamic Continental (P) Ltd.

"Developers are shifting to B-class cities for a simple reason that there is no competition and that would assure greater success for malls. The customers from B-class cities visit metros' mall for their requirements, which they will stop once they get the same facility in their own city. The biggest advantage for customers to purchase the stuff from local city is that in case of any problem and replacement, the customers can do so very easily as compared to purchasing the stuff from other places," says Mr Vijay Tekriwal, director, Rukmani Vatika Pvt. Ltd. Real estate value in B-class cities is also going up, and though the developers are spending almost an equal amount on the mall per area, still they are assured of a comfortable level of footfalls due to the absence of any other mall in the area and the eagerness of the consumer to shop in these malls. These cities are, therefore, beginning to offer slightly higher returns, which is estimated to be one per cent more than their metro counterparts.

These cities would see major retail format development of less than one lakh sq.ft by 2006. According to industry sources 58 malls are coming up in these cities and their contribution to the organised retailing sales would grow to 20 to 25 per cent.

Continuing on our previous article in the last issue on malls in B-class cities, we now focus on the malls coming up in B-class cities in the rest of India, including a few in the north.



HUB: Conceived by Prakash Sanganeria, director, Mridul Properties Pvt. Ltd, the HUB shopping mall and multiplex is spread over an area of 50,000 sq.ft. The mall is anchored by Eastrends, a complete family store offering customers a wide range of FMCG and lifestyle products along with other household and electronic goods. Located on Bhangagarh Road, Guwahati, the mall has five levels. About 25,000 sq.ft space within the mall has been allocated to shopping activities along with a 1,200 sq.ft atrium and capsule lifts. The parking facility caters for 80 cars and an equal number of two-wheelers outside and in the basement.

Peace Enclave: Developed by Kamrup Developers Pvt. Ltd, a Guwahati-based retail real estate group, Peace Enclave is situated on G.S.Road, Guwahati. The mall has come up on 18,144 sq.ft plot, with a total construction area of about one lakh sq.ft consisting of ground plus eight storey building (each floor of about 12,000 sq.ft constructed area).


Forum Mall: Located at Kharvel Nagar, Unit III, in the Central Business District, the Forum Mall is the brainchild of Rahul Saraf, the man behind the Forum at Kolkata. This four-level mall has a total area of 1.7 lakh sq.ft with 1.15 lakh sq.ft devoted to the retail and F&B section. Anchored by Big Bazaar, the other brands that have taken space in the mall include, Pizza Hut, Moustache, Duke, Sree Leathers, Baskin Robbins, and Planet M. The upcoming brands include Benetton, Black Berry's, Chandrani Pearls, Bata and Sivaram's. The mall has an average footfall of 7,000 per day.



Name-not specified: Somna Entertainment, managed by the owners of Sangeet Cinema, Secunderabad's oldest theatre, in association with Singapore-based Royal Brothers and CPG Corporation, is planning to build a multiplex of six theatres, a five storey shopping complex, a small bowling alley and a food court.


CMR: Started by Chandana Group, CMR shopping mall with a floor area of 60,000 sq.ft has five floors. Close to 5,000 customers visit the mall daily. The Visakhapatnam Urban Development Agency is planning to develop huge commercial complexes to replicate its success, particularly at posh localities like Sripuram and Dwarkanagar.



Melange Mall: Coming up in Meerut vicinity, Melange Mall is the first mall in northern India with an international highway concept. The mall will be built in an area of 2.5 lakh sq.ft. The total investment would be around Rs 50 crore. The average sale price per retail outlet would be Rs 5,000 per sq.ft, as compared to Rs 8,000 to 13,000 for similar malls in Delhi and Gurgaon.

"Due to its Meerut-Dehradun highway location, the mall, besides catering to the clientele of these areas, will also serve the highway tourists, and is expected to cross the 20,000 figure everyday," says Mr Abdul Bari, vice president, marketing and business development, Melange Mall.


TDI Mall: Taneja Developers and Infrastructure Ltd, the flagship company of Taneja Group, with its TDI City at Kundli in Sonepat district, Haryana, now, plans a multiplex-cum-shopping complex, called the TDI Mall, adjacent to TDI City. Spread over an area of approximately 2.25 lakh sq.ft the mall will not only attract the residents of Sonepat and north Delhi, but also cater to those travelling on the G.T. Road.

"In order to cater to the needs of the residents of north and north-west Delhi, we have selected Sonepat as the best destination for real estate development. Our formats for shops are very flexible. We offer an option to lease from 600 sq.ft to 45,000 sq.ft," says Mr Nitesh Kumar, director marketing, TDI.


Bhagwati Tower: Situated at R.K.Road, Industrial Area 'A', Bhagwati Tower, a multi storey complex, has all modern amenities. The complex has the nearest approach to the Chandigarh road and is close to Delhi National Highway no. 1. Apart from an ample parking space, the complex has glass lifts.

Flamez: Developed by Dynamic Continental (P) Ltd, Flamez is spread across 1.75 lakh sq.ft area (approx.). Developers intend to have the right kind of tenant mix in the mall to provide value for money to the masses. Catering to each segment of the population, more emphasis is being given to the needs of the children and women. For anchor outlet, PVR cinema has signed with the mall and they are negotiating for the other anchor.


Mega Mall: Located in the heart of the Central Business District and entertainment zone, Mega mall is a multi-storey shopping-cum-office complex. Constructed in an area of 1.17 lakh sq.ft, the mall is earthquake resistant with fire safety approval and approved by Kanpur Development Authority. Besides demarcated thematic floor layout, it has an exclusive floor for diamond and jewellery market. Situated on a corner plot, parking can go up to 250 cars within the premises and 150 cars outside.


Tez Kumar Plaza: Located at Hazrat Ganj, Tez Kumar Plaza has a total built-up area of 70,000 to 75,000 sq.ft. The space of shop can be from as little as 100 sq.ft to as large as you like in 18 different specifications. The mall has brands like Reliance, Handloom Corporation of India and Jashn Sarees. According to Mrs Smita Patwardhan, managing director, Tez Kumar Book

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