Realty major DLF will invest around Rs 2,000 crore to construct two new shopping malls in Gurugram and Goa, as it sees huge growth potential in organised retail with opening up of the economy after significant reduction in COVID-19 cases. In an interview with PTI, Sriram Khattar, Managing Director, DLF Rental Business, sounded bullish on India’s organised retail sector which was affected very badly in the last two years due to the pandemic.
Khattar said the DLF is expanding its retail real estate portfolio, and will develop two new shopping malls, including ‘Mall of India’ Gurgaon and four neighbourhood shopping centres.
At present, DLF has a retail footprint of 42 lakh square feet comprising eight properties, including malls and shopping centres, mainly across Delhi-NCR.
“We have started the construction of a premium mall in Goa of about 5.75 lakh square feet. It will be the best mall of Goa to the standards which our malls are,” Khattar told PTI.
Asked about investment, he said it would be around Rs 300-350 crore over the next two years. “We are also in the advance stage of planning for our ‘Mall of India’ Gurgaon comprising 2.5 million (25 lakh) square feet area,” he said.
The construction is expected to start by the end of this year.
“So the architects have started doing the designing. We hope to complete it over the next six months or so. Since it’s a very large mall, the planning takes more time,” Khattar said.
On project cost of ‘Mall of India’ Gurgaon, he said it would be around Rs 1,500-1,600 crore, excluding land cost. Asked how different this project would be from the two million square feet Mall of India-Noida, he said: “With each experience, we have tried to improve upon ourselves. Therefore, from our learning from Noida mall, this will be that much better.”
On viability of ‘Mall of India’ Gurgaon project considering the presence of Ambience Mall nearby, Khattar said the competition helps in growing the market.
“Given our credibility with the retailers and trust they repose on us, we do not see an issue in terms of getting the best brands in the country and the world to this mall,” he asserted.
That apart, Khattar said the company has started a concept of high-street shopping centres to cater to the requirements of people living around.