Future Group plans unique lease model for new malls
16 May 2011
The Future Group, which owns the Big Bazaar chain of retail stores, is working on a new and unique model for mall development which will be ''profitable to all involved parties – landowners, mall owners, developers and retailers'', Future's managing director Sunil Biyani said.
Under the new model, after a period perhaps 10 years, the landowner will get back the land to further innovate, renovate or redevelop, Biyani told a shopping centre forum in Mumbai on Saturday.
"We are working on a model that is economically viable and at the same time is retailer friendly. We will have something concrete on this in the next three-four months. We are in talks with two-three developers," he said.
''We are in the conceptualisation phase and will be testing the concept in three cities - Mumbai, Hyderabad and Kolkata. The size of the malls will range between 250,000 sq ft and 450,000 sq ft. Our aim is to reduce operational costs and make it profitable,'' he added.
"A mall is a long-term project and hence we should have a model that reaps benefits for a longer period. The malls should be cost-effective, safe and at the same time, it should have the look of a high-street mall. Our aim is to reduce operational costs and make it profitable," said Biyani. He said the group would try to limit the common area maintenance cost to Rs7sq ft.
Biyani said that some of the innovative measures that the upcoming malls will have would be the use of natural and green building materials, energy efficiency and 100 per cent lease model.