Magazines Archives - 2009 October

Dutch developer to roll out six European-style malls in South India
Story 10 - Property Update

The Netherlands-based developer Plaza Centers NV is set to invest Rs3,000 crore (US$624 million) over the next three years, to develop a European-style mall in each South Indian city of Pune,
Bangalore, Hyderabad, Karnataka, Chennai and Kochi. Together with the group’s Bangalore-based subsidiary, Elbit Plaza India Private Ltd, the company will set up different units in each
market to manage its retail operations.

Shahshank Pathak, director of marketing at Plaza Centers India, told local media: “Pune-based Anuttam Developers Private Ltd is the first such entity we have developed to handle operations
of four lakh-sqf Koregaon Park Plaza mall in Pune, for which the company has infused a capital of Rs500 crore.”

The mall is scheduled to open in the first quarter of 2011. The group has also partnered with
retail estate services company, CB Richard Ellis (CBRE), to oversee the leasing, marketing and A&P needs of Koregaon Park Plaza. Said Anshuman Magazine, chairman and managing director, CBRE:

“With a presence in nine countries and with more than 30 malls constructed or under construction
in Eastern Europe, Plaza Centers brings to India a world-class construction that is unique,
innovative and, above all, groundbreaking … Through this tie-up, Plaza Centers will have
the unique opportunities to leverage our national presence while enjoying the in-depth knowledge, extensive experience and specialised skills of our human resources.”

Meanwhile, Abraham Goren, executive vice-chairman of Elbit Medical Imaging Ltd, an Israeli conglomerate that is also a shareholder of Plaza Centers, revealed that the company would
be establishing its malls in India’s “Tier I, II and III cities”. According to the Retailers Association of India, retail rents in the NCR of Delhi and Mumbai have tripled in the past two years, compared
with other cities in the south and east.

In addition, the company plans to invest Rs5,000 crore to open up to 50 malls and multiplexes in India by 2016. “There will be a huge demand for malls going forward. The retail space per individual in the country is way below the international standards. Moreover, retail has not reached all the Tier II cities in the country. There is an opportunity to tap that,” said Shubhranshu Pani, president of retail services at Plaza Centers.

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