Retail realty portfolios are set to expand
Top investors and developers are looking to buy out shopping malls and land to expand their retail realty portfolios on the back of urban India’s consumption story. The Mint newspaper reported that large investments by global funds and demand for…

Top investors and developers are looking to buy out shopping malls and land to expand their retail realty portfolios on the back of urban India’s consumption story.

The Mint newspaper reported that large investments by global funds and demand for quality malls have also propelled the unprecedented expansion in this space.

Mall developer Phoenix Mills Ltd plans to acquire two land parcels under its investment partnership with Canada Pension Plan Investment Board (CPPIB) by mid-2018, bringing around four assets under the platform.

Since the CPPIB tie-up last April, when the Canadian investor committed to invest $250 million in a unit of Phoenix Mills, it has bought a land parcel for Rs1.3 billion and a partly-constructed mall in Indore for Rs2.30 billion.

It will also add 400,000 sq. ft to its million sq. ft mall in Bengaluru. A Phoenix Mills official said his company has already achieved Rs300 billion of sales (from our malls) between April-September, compared with Rs58 billion.

In November, APG Asset Management NV invested $175 million in Virtuous Retail South Asia Pte Ltd (VRSA), a joint venture with Xander Group Inc., for acquisitions and new project developments.

Rohit George, Executive Managing Director and Chief Investment Officer of VRSA, said it is buying up under-construction mall. The company will add at least one new asset this year.  It is in talks for acquisitions in Hyderabad, Kolkata, Delhi and Mumbai.

An estimated 34 malls will come up by 2020, totalling 13.6 million sq. ft. Of this, 25 malls may open in 2018, based on developer timelines received, said property advisory Cushman and Wakefield. Only six malls opened in 2017.

DLF Ltd, which unveiled The Chanakya mall in Delhi last year, built on the lines of its other luxury mall Emporio, operates both premium and luxury malls. Prestige Group has launched its first mall in Mysuru in January, and is set to launch one  in Bengaluru and is rebranding a mall in Udaipur and may relaunch it, said a company official.

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