Xander Gr to invest $600 mn to develop about 12 malls in India

New Delhi: Global investment firm Xander Group will pump in USD 600 million (about Rs 3,300 crore) to develop and operate about 12 luxury shopping malls across India by 2017.

Virtuous Retail, the group's retail venture, is at present constructing eight such centres at various places and will develop another 2-4 malls in the coming years.

"The scope and potential of organised retail in India is huge. We have committed USD 600 million for a pan-India retail presence. We think, the amount will be invested by 2017," Virtuous Retail Marketing Director Anupam Yog told PTI.

Virtuous Retail, which is sponsored by the Xander Group, was set up in 2007, and is gearing up to open its first project at Surat in Gujarat by the end of this year, he added.

"Surat is our flagship project, where we are investing around USD 50 million. The total size of the shopping complex will be 6,00,000 sq ft," Yog said.

The company has also adopted the 'Surat Boat Race' to promote it in the global platform, besides starting a three-day story-telling event -- Kahani Festival.

"From the Surat project, VR Surat, we are expecting a rental revenue of Rs 30-40 crore annually," Yog said.

The company will hire 300 people for operating the complex, besides indirectly creating about 3,000 jobs.

Talking about the other projects, Yog said: "At present, eight projects are under various stages of constructions in places like Pune, Mumbai, Bangalore, Kolkata and Chennai. The sizes of the malls will vary between 0.5 million sq ft and 1.5 million sq ft."

The company will launch 2-4 new sopping centres, targeting cities like Delhi, Ahmedabad, Hyderabad and Chandigarh, he added.

"Our concept is to provide a lifestyle. We plan to bring in various global brands into India and give consumers a premium retail experience," Yog said.

When asked about its model of operations, he said the company will own, develop and operate the properties.

"In some cases, we are developing the complexes under joint venture agreement with the property owner. The model will vary in different places, but we will never sell off the developed spaces," Yog said.

Some of the under-developed malls in Bangalore, Mumbai and Pune are mixed-use spaces, he added.

Xander Group has so far invested about USD 1 billion in India since 2005 in various sectors, including infrastructure, hospitality and entertainment.

PTI

First Published: Sunday, July 08, 2012, 15:17

Source: http://zeenews.india.com/business/realestate/latest-news/xander-gr-to-invest-600-mn-to-develop-about-12-malls-in-india_55369.html

Sivasankaran sells IT park for 110 crore

CHENNAI: In a blockbuster real estate transaction, NRI businessman C Sivasankaran has sold off his Sterling Technopolis IT park in Perungudi on the Old Mahabalipuram road to Chennai-based hardware distribution chain Redington for 110 crore. The real estate market is going through a sedate phase in Chennai with very few large transactions taking place. Located next to Krishnan Tennis Centre, Sterling Technopolis has a built-up area of 2.40 lakh sq feet. HCL Technologies is its only tenant. "The transaction concluded a few days back. At disclosed rates it works out to 4,600 per square foot which is a very fair rate in this region considering that we are in a tepid market," industry sources said. Neither Sivasankaran nor Redington could be contacted for details. Sources said Redington, India's largest distributor of technology products, wants to centralise all operations under one roof. 

At present, Redington has scattered its activities across half a dozen office spaces in the city. The last big transaction on the IT corridor was when investment firm Xander Group's real estate private equity arm bought 5,70,000 sq ft of office space developed by Appaswamy Builders in Navalur near Chennai for $40 million in April. "We don't get to see big bought out deals in IT space. Such transactions keep interest levels high and set benchmarks for future deals," industry sources said. Located a mile away from Chennai's trophy destination for IT -- Tidel Park, Perungudi is a magnet for IT companies. The rentals for IT space here are between 40 to 45 a square foot.

Source: http://timesofindia.indiatimes.com/city/chennai/Sivasankaran-sells-IT-park-for-110-crore/articleshow/14310172.cms

Xander buys Chennai IT building for Rs 200 cr

CHENNAI, APRIL 24: The Xander Group, a multinational investment firm, has bought an IT office building for $40 million (Rs 200 crore) in Chennai.

A press release from Xander said its real estate private equity arm has acquired ‘Futura', a six-acre property, with two buildings totalling 5.70 lakh sq. ft of built-up space.

The property on the Old Mahabalipuram Road to the south of the city was sold by Appaswamy Real Estates, a high-end residential developer.

A real estate expert said the deal indicates the trend in completed and leased out IT properties on the road, popularly known as the IT Corridor. Real estate funds are keen on investing in such income-generating assets as they believe the market conditions are set to improve. Real estate developers prefer to free money locked up in commercial property and invest in more lucrative residential development.

Market estimates indicate that an office building like Futura fetches over Rs 30 a sq ft a month in lease income, about Rs 15 crore annually. This revenue is bound to improve given the current market conditions; there is also the 12-15 per cent escalation clause that kicks in every three years in lease agreements; and capital value is bound to increase.

According to a Xander spokesperson, over 150,000 sq. ft is available for lease at Futura. The IT office building now has high end clients such as Paypal, a subsidiary of eBay, and Gamesa Wind Turbines. Xander will use its international presence to bring in high quality clients to lease out the balance space available there.

The Xander Group has invested in infrastructure, hospitality, retail and real estate sectors. Since 2005 it has invested over $1.8 billion in equity capital in the Indian market.

Source: http://www.thehindubusinessline.com/companies/article3349859.ece