Feedback
A pioneer B2B media and publication platform connecting with Fashion Brands & Retail in India

Mall spaces in India to go up by 20 million sq. ft. in next three years: JLL

Mall spaces in India to go up by 20 million sqThe number of malls in India is set to increase on the back of rising consumption in brick-and-mortar stores and increasing private equity funding. As per JLL, an estimated 7.8 million sq. ft. of space has been procured to construct malls, the highest since 2011, and 40 per cent higher than 2017. JLL says the next three years could see around 20 million sq. ft. of mall space as all big developers such as DLF, Prestige, Brigade Phoenix Mills, L&T, Nitesh Estates and a host of regional and local developers are building new malls. While Blackstone-owned Nexus Malls is adding 2 million sq. ft. to its portfolio, Phoenix Mills, the largest mall owner, is looking to double its portfolio of over 6 million sq. ft. L&T Realty, the real estate arm of L&T, is building four malls in Hyderabad.

As per JLL, the retail sector is estimated to grow to Rs 1 trillion by 2020, at a CAGR of approximately 12-15 per cent. Malls have seen investments of over $750 million in 2017, almost double of what the segment saw in 2016. Ramesh Nair, CEO & Country Head, JLL India, says encouraged by urbanisation, young population and rising proportion of nuclear families in urban locations, over 70 per cent of consumption growth in the next 15 years is expected from population aged 15-59 years, with increased per capita consumption. This along with the opening up of the FDI route for retail brands entering into India, will further boost retail investments.Mall spaces in India to go up by 20 million sq. ft. in next three years

Rituraj Verma, Partner, Nisus Finance Services points out, there is an acute shortage of mall space in the country and vacancy is at a all time low. Very few malls have started operations in the last five years and mall developers are scouting for land as most of the land bank they had has been used up. Having said that, developers have been impacted by a slump in real estate and most malls are more likely to be completed in 2019.

Sid Yog, Founder, Xander Group, observes real supply of well planned, well located, well-capitalised projects is far lower and the capability to operate when built makes the real operational supply likely to come on line even smaller. It takes 6-7 years to build a new mall of any scale/size. So these projects (if real) must have been planned in 2010-2011. They can’t have come up suddenly. It’s just that they are suddenly more visible in the media. Separately, six million sqft a year for the next three years is hardly much supply for a country the size of India with 10 major cities and 20 mid-sized cities.

JLL’s report indicates 2017 has seen some rationalisation of mall space as well. The year saw a withdrawal of nearly 5 million sqft of retail space with a closing down of 28 malls. Most of the rationalisation took place in the markets of Delhi – NCR and Mumbai owing to the fact that these markets have significant mall stocks with a considerable percentage of the same performing below par.

Private investors on the rise

Canada’s largest pension fund manager CPPIB in April said it would invest an additional Rs 9.38 billion into the Island Star Malls Developers, the mall investment platform it co-owns with The Phoenix Mills. The platform bought land parcels in Pune and Bengaluru. US PE giant Blackstone acquired eight malls in the past two years and a portfolio of over five million sqft. It plans to take it to seven million sqft. It has a set up a separate company, Nexus Malls, to operate these malls. Susil Dungarwal, founder & chief mall mechanic at Beyond Squarefeet, stated that shopping Malls offer the best returns on Investment compared to any other category of real estate, hence the PE/REIT interest in shopping malls shall always be high. The recent splurge of the PE/REIT in the sector is a testimony of the same.

Experts say, over half of PE money has been invested in Tier II cities. For instance, about half of Blackstone’s malls are in tier II cities. Blackstone bought malls such as AlphaOne Mall in Ahmedabad, Elante Mall in Chandigarh and Treasure Island Mall in Indore. It also owns a 50 per cent stake in a Pune mall. According to sources, it is exploring new opportunities in tier-II cities in the northern and southern part of the country.

LATEST TOP NEWS
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10

Mirrorsize US to launch ‘draping’ solution based on customer’s selection of fabr…

Mirrorsize US to launch ‘draping’ solution based on customer’s selection of fabric, style

The Indian arm of NJ-based company, Mirrorsize US Inc, plans to launch a ‘Draping’ product in the next three to four months. “Based on customer’s selection of fabric, style, etc,... Read more

UV&W to tap over 2,000 MBOs, increase online presence by 2020

UV&W to tap over 2,000 MBOs, increase online presence by 2020

Believing in “innovation plays a vital role in this category,” thermal wear brand UV&W has added new blends besides introducing new styles this season. In addition to its base color... Read more

Kavin’s new thermal range promises best warmth and comfort

Kavin’s new thermal range promises best warmth and comfort

Following its motto: ‘Inspire to design, design to style and style to perfection,’ Kavin’s A/W ’19 collection is a special range of thermal wear in Miyabi fabric. “This range of... Read more

Adding more variety to its range, Juelle is positive about business this winter

Adding more variety to its range, Juelle is positive about business this winter

The latest winter wear range from Juelle is trendy, chic and highly adaptable to the youth. “Embroideries and fancy yarns have emerged as the major style statement this year. Sweaters... Read more

Indian techies tackle sizing issues with AI-based solutions

Indian techies tackle sizing issues with AI-based solutions

A 2016 survey of 1,000 online shoppers by British consumer analysis firm Savvy Marketing showed around 63 per cent of women buyers returned their clothes. Most of these clothes were... Read more

Vingo to add summer collection, launch own portal to expand retail

Vingo to add summer collection, launch own portal to expand retail

Delhi-based garment company, Vingo Clothing has big plans for the future. The company, which recently launched its winter range, is now working on its summer collection, “Which will be more... Read more

Shingora to expand product category, launch new collections

Shingora to expand product category, launch new collections

Winterwear brand Shingora has introduced its autumn/ winter ’18 collection featuring embroideries, checks and jacquards. This collection is adorned with funky and floral prints. “Our biggest launch however, is the... Read more

Tirupur garment exporters look at domestic market, investing in Ethiopia

Tirupur garment exporters look at domestic market, investing in Ethiopia

Global festive season has brought a ray of hope to Tirupur, which recently witnessed one of its worst years. Demonetisation coupled with the implementation of Goods and Services Tax (GST)... Read more

Making a mark with jackets, Replay Square optimistic business this season

Making a mark with jackets, Replay Square optimistic business this season

Raman Kapoor, Managing Director, Replay Square, a manufacturer of designer jackets, has a very positive view of the current market. The market, according to him is good “as production level... Read more

4th Intex South Asia gets an overwhelming response with over 3,500 attendees

4th Intex South Asia gets an overwhelming response with over 3,500 attendees

The 4th edition of Intex South Asia, held from November 14 to 16, 2018, at the Sirimavo Bandaranaike Memorial Exhibition Centre (BMICH) in Colombo, Sri Lanka, showcased a wide range... Read more

MOST POPULAR NEWS
Go to top