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HPCL plans to develop malls in Cochin, Jaipur
| November 4, 2006 |  (Be the first to rate this story!) Loading ... |
State-owned oil marketing firm Hindustan Petroleum Corp (HPCL) has lined up its retail foray in Cochin and Jaipur with assistance from property consultants Trammell Crow Meghraj (TCM).
HPCL plans to build malls with multiplexes, food courts, hotels, convention centres, amusement parks besides commercial complexes and premium residential apartments at the 60-odd acres of land available with it in the two cities.
The Cochin project will be the first to get off the ground and the projected yield from this project, excluding the sale of residential flats, is pegged in the range of Rs 30 to 40 crore annually. Sale of flats is estimated to add another Rs 100 crore to the company’s bottomline.
Of the four models proposed by its consultant, HPCL has zeroed in on the joint venture partnership model with a private developer for development and management of the property.
The JV partner will construct and market the retail facilities and HPCL will bring in land as equity. The net revenues will be shared between HPCL and the other party in proportion of HPCL equity (including land cost) and partner’s equity construction cost.
This arrangement, according to HPCL, offers the highest value for HPCL as it gives it proportionate profit sharing without any capital investment. However, a final decision in this regard will be taken only after the approval of the company’s board.
HPCL currently owns huge chunks of prime real estate in several cities in the form of oil depots, terminals, LPG plants, housing colonies and retail outlets. At many such places, the operations have been shifted to other locations resulting in vacant land lying unused.
The other three options proposed by TCM were: forming a joint venture with a real estate fund, tie-up with integrated retail developers on BOOT basis and investment by HPCL itself in the development and construction of the property besides carrying out its own marketing and management of the complex. HPCL’s retail consultant, TCM has been associated with leading malls in the country like High Street Phoenix, Centre One, InorbitCentral Mall, Forum, Metropolls and Inox.
Source from www.financialexpress.com
News Published Under: Real Estate India |
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