News: The realtor-retailer tango is a win-win development

(DNA 04/04/2006) Mumbai - After the consumers, it’s the turn of the realtors to get bitten by the retail bug.

With supermarkets coming up left, right and centre, and the retail industry growing at a 30% plus rate, some order was, well, in order where it comes to mall space development.

So what do the chains do? Go for corporatisation.

Sector pioneer Pantaloon was the first off the blocks in this effort, grabbing big retail space through subsidiary Kshitij Ventures. The trendsetter is now being followed by another big retailer, Trent.

The Tata firm has tied up with New Delhi-based builder DLF Universal to anchor its next 12 malls across various cities.

Arvind K Singhal, chairman, Technopak says “With the evolution of modern retail, corporatisation has finally arrived in mall space development. There have been such tie ups earlier in the country but that has not been for more than 3 to 4 projects. And this tie up is larger enough to mark the corporatisation.”

“And the corporatisation also means that the organised retailers can now access quality space more quickly,” he added. Trent will have 27 stores totaling to about a million square feet of space for its brands like Westside, Landmark, and Star India Bazar in these malls.

“Real estate and retail industry are in an aggressive growth phase and this alliance along with participation in some of their future projects will be beneficial for both companies,” said Noel Tata, managing director, Trent recently said at a press conference in Gurgaon. Pantaloon, in the beginning of the year had announced to set up 51 malls in 29 cities across 14 states of the country through subsidiary Kshitij.

But mostly the mall space development at large scale has been devoid of big corporates. Trent also launched its first Westside store in Gurgaon in the newly developed property of DLF Universal. Westside is now present in 13 cities and has 22 outlets across the country.