Parsvnath Developers to invest Rs 100 crore on new mall in Delhi
Realty firm Parsvnath Developers will invest about Rs 100 crore to develop a shopping mall in the national capital as part of its strategy to generate rental income from leased commercial properties. “We are developing a shopping mall at Netaji Shubhash Place in West Delhi. The total area of the shopping mall is 5 lakh sq ft,” Parsvnath Developers Chairman Pradeep Jain told.
The 5 acre project will be constructed in the next 18 months, he added. Jain said the investment will be Rs 100 crore on this shopping mall. “We are very bullish on the commercial real estate segment which is doing extremely well as compared to housing segment,” Jain said.
In the housing segment, he said the company is only focusing on completion of existing projects and has not launched any new projects in last few years. Talking about its existing portfolio of commercial properties, he said the company’s current annual rental income is about Rs 120 crore. It is earning over Rs 80 crore from the first phase of office building near Gole Market in central Delhi and about Rs 40 crore from other commercial assets, including metro malls.
Parsvnath is constructing the second phase of the Gole Market property and expects it to be completed by June next year. This will help the company generate another Rs 60 crore as annual rent. The developer is also constructing a commercial building at KG Marg near Connaught Place in Delhi with a leasable area of 1.3 lakh sq ft, of which 40,000 sq ft will be retail and the rest will be office space. It had acquired 1.18 acre of commercial plot at KG Marg in 2008 for Rs 212 crore. The leasing of this property has also started.
Parsvnath Developers has so far completed 65 projects measuring 30 million sq ft and is currently developing 52 million sq ft. It has a land bank of 102 million sq ft.