Bengaluru-based real estate major Prestige Group has entered into a joint venture with Singapore-based CapitaLand Retail to develop retail projects in India. Initially, they will develop standalone or mixed use malls in Bengaluru, Hyderabad, Kochi, Mangalore, Chennai and Mysore under the ‘The Forum’ brand. These projects are expected to be completed between early 2009 and 2011.
A total leasable area of...
... 5.27 million sq ft and approximately 4.0 million sq ft of retail space will be developed at a cost of Rs 29 billion. “The plans have been drawn up and we are in the process of getting sanctions for the building plans of the various projects,” says Neeraj Duggal, Vice President – Retail Development, Prestige Estates Projects Pvt Ltd. Of the seven projects, CapitaLand has signed agreements for two projects in Bengaluru, one in Mangalore and one in Mysore. The agreements for the other three projects are expected to be signed soon.
The company will tie up with local partners for each of these projects and they will have a stake in the projects depending on the cost and type of project. For example, for the Hyderabad project there will be a tie-up with Sujana Group and the one in Mangalore will have a tie-up with Fiza Group. The mixed use mall will sport a mall, serviced apartments, a hotel and office space. This combination will depend on the local requirements and available land area.
“Our initial focus will be on South India. We will look at other cities depending on the success of these projects,” informs Duggal. Prestige will be responsible for sourcing the land, design and management of the mall. CapitaLand will handle asset planning, marketing, leasing strategy, financial strategy, exit plans and implementation of the project. Both partners will have equal stakes in all the JV projects.
That apart, the two companies plan to jointly set up a mall management company to manage these projects. CapitaLand has the right of first refusal for all the future retail projects based on factors such as the merit of the project, location and so on.
Source|HospitalityBizIndia
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