Prozone Enterprises (P) Ltd, a retail real estate development company and a wholly owned subsidiary of Provogue India, will be earning lease rental revenue of Rs 40 crore-Rs 50 crore per year from the first mall at Aurangabad, assuming that the lease rental is between 6%-10% of total annual revenue, according to industry sources. The project is built on8,30,000 sq ft area of retail space.
According to Nikhil Vora, managing director-research, IDFC SSKI Securities Ltd, “the mall will generate Rs 500 crore-Rs 600 crore of revenue per year.”
“The handovers of the stores will commence from beginning of 2010 and the occupation in the mall will start by July 2010,” said Nikhil Chaturvedi, managing director, Prozone Enterprises (P) Ltd.
The company is planning to build 50 Prozone shopping malls with an investment of $1 billion over the next five years, said Chaturvedi. The company is developing more than 12 million sq ft of modern retail space in India, primarily in tier-II cities such as Raipur, Jaipur, Indore, Mysore and Aurangabad.
The anchor tenants (Hypercity, Shoppers Stop, Globus, Westside, and Big Cinemas) are satisfied with the structure of the mall. “The structure is built up in a unique way keeping in mind tier 2 cities. I think it should do very well in these cities,” said B S Nagesh, vice-chairman, Shoppers Stop.
The company has already sold 80% of the stores in the mall. “After the success of their project at Aurangabad, the company will be soon be coming up with malls in Indore, Jaipur and other tier-II cities,” said Mr Chaturvedi.