Unity Group has formed a joint development agreement with Parsvnath Developers to develop 450,000 square feet of retail area with an investment of ₹200 crore, said Unity Group co-founder Harsh V Bansal. The bridge-to-luxury mall is located near Netaji Subhash Place metro station and the land is on lease from Delhi Metro.
The agreement is part of the company’s plan to double its retail portfolio and create a retail Real Estate Investment Trust (REIT).
“This mall should become operational by October 2023, and we are already in touch with brands for leasing. We are expecting ₹100 crore in rental income every year,” Bansal told.
In addition, company has planned mall developments in Preet Vihar, Mangolpuri, Rohini, and Punjabi Bagh in Delhi, and Mohali in Punjab. The company is also in the process of expanding all its six operational malls as part of the extra floor area ratio allowed by the Delhi Development Authority (DDA). “In Preet Vihar, we are developing 150,000 sq ft, while we have acquired two land parcels in Mangolpuri and Rohini from DDA for ₹63 crore. We will invest another ₹200 crore to develop 300,000 sq ft of retail space,” said Bansal.
According to an analysis by Cushman & Wakefield, India’s top three cities will need 9 million square feet of retail space every year till 2027 to reach the level of organised retail area available in a country to match the cities of a small country like Vietnam’s retail space per capita.
Currently, India adds about 3.8 million square feet of retail space every year, with developers mostly focusing on office and residential assets. Experts said it is time now to create Grade A retail spaces as international brands are betting big on India.