Mall Representation Proposal

for the

RIVERSIDE MALL & HOTEL

By

Chennai. May 2007

Page 1
Presentation Flow

• CHENNAI MALLS – A SNAPSHOT

• RIVERSIDE MALL & HOTEL – LOCATION & DEVELOPMENT

• C&W APPROACH & METHODOLOGY

A. Objectives
B. Trade & Tenant Mix
C. Formats & Rate card
D. Transaction Dynamics & Timelines

• PROJECT MARKETING PROCESS

• C&W MALL MANAGEMENT – THE FUTURE

Page 2
Chennai Malls – A Snapshot

Page 3
Chennai - Mall Retailing Outlook

The first organized Mall retailing started with Spencer Plaza in 1991.

Multiple mall developments are at various stages of planning and construction as on

Date. Both national and local developers are in a mall development spree.

Chennai shall witness a supply of over 10 million Sq.ft of retail space over the next 12 to
30 months. Retail development in the city is spread across the various residential pockets

Existing malls in the CBD have achieved rental in the range of Rs. 80-110/Sq.Ft/Month
(Ground Floor) . However rates would vary with location and size of development

A quality product with the right positioning for an upcoming mall can attract a premium
of about 10-15%

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Page 5
…Continued

Page 6
THE RIVERSIDE MALL Location &
Development

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Location Details

On the Old Mahabalipuram road or the designated IT Highway. The site has dual
frontage, ideal for a retail development

Unique site location as it lies on the riverside and hence a huge scope for activities that
would connect both the internal and external environments of the Mall.

The older residential catchments namely Adyar, Thirvamyur, Besant Nagar & the fast
developing Velachery area would be 10 mins away once the 6 lane roadway is up and
running

Residential activity on the IT Highway is growing at a scorching pace due to the demand
from the employees of the IT/ ITES industry.

Located again strategically at a key node of the IT Highway, OMR, a stretch that is to
house more than 20 million sqft of IT space

Overall the site is ideal for a mixed development of retailing & hospitality.

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Development Details

Land extent is of 7.3 acres. Frontage on OMR is 300 ft. A second frontage on the
riverside is off 800 ft

Proposed Mall, Entertainment & Hospitality of close to 1 million sqft

Lease able Mall area over 5 levels with a floor plate of more than 1 lakh sqft

Lower ground – Hypermarket & Vanilla retailing

Adyar Besant Nagar

Ground, first, second would cater to shopping with a scattering of F&B

The 5 screen multiplex would be housed on the 2nd & 3rd floors Thirvamyur, ECR

The Food court and Entertainment would be housed on the 3rd floor

Two car parking basements for the Mall : 700 + car parks
IT Highway
Multiple level car parking adjoining the hotel block for the hotel.: 200 car parks

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C&W APPROACH & METHODOLOGY

Page 10
C&W A&M
Objectives
Primary Objectives
Market positioning
General Mall Formats – an insight

Trade & Tenant Mix

Primary Deliverables
Identifying Trade Mix
Identifying Tenant Mix
Prevailing Trade Break-up in Organised retailing – an insight

Formats & Rate Card

Pricing
Space Format

Transaction Dynamics & Timelines

Client Selection
Leasing

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OBJECTIVES

Page 12
Primary Objectives

To maximize the business potential from the mall,

i.e. maximum sales per sqft per day by

Market Positioning relevant to the development

Optimizing Trade & Tenant Mix

Achieve desired financials keeping in mind market

dynamics

Page 13
Market positioning

To project the location and catchments

Advantage of the size & development mix

Vision of developer

The tenant profile present & planned

The design and architecture

Parking , amenities and services

The Mall management

Page 14
General Mall Formats

Mega Malls - Multiple department stores, hypermarket,

entertainment & restaurants 600,000 + SQFT
Eg. Unitech’s Great India Place Noida

Regional Malls - Anchored by department store, hypermarket &

multiplex 400,000 – 600,000 SQFT
Eg. Forum Bangalore, High Street Phoenix Mumbai, Inorbit Mumbai

Sub-Urban Malls - Located in sub-urban areas & tier-II cities /

towns; anchored by department store(s) & multiplex 200,000 –
400,000
Eg. MGF Metropolitan; DLF City Center Gurgaon

Value Malls - Malls competing on price with hypermarket as

anchor tenant; targeted at middle-income group150,000 –
200,000
Eg. Sahara Mall Gurgaon

Specialty Malls - Focused on one product category, theme or

targeted consumer segment 150,000 – 250,000
Eg. Gold Souk Gurgaon, DLF Emporio Delhi, Ishanya Home solutions Puna

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TRADE & TENANT MIX

Page 16
Primary Deliverables

To ascertain Trade Mix

To maximize the business potential in each category
To bring complimenting trades to complete the shopping experience
Right sizing the space allocation to each product category

To ascertain Tenant mix

To provide wider product options to customers vertically and
horizontally
Bring complimenting brands to maximize business potential

To maximize rental values

To have a pricing strategy for mall to achieve better rental values
Increase the business potential by pre-leasing a select % of retail
space only and leaving room for new entrants when the structure is
complete.
Better rentals would also be derived by the above method.
Page 17
Identifying Trade Mix

To arrive at a break-up of space occupied by the various

trades
Hyper
Anchor
10% Apparel
2%
2% 24%
2% Gifts
2% Jewelry
6% F&B
2% Shoes
Services
12% Acessories
19%
Home
1%
2% Electronics
16% Books
Entertainment

Page 18
Identifying Tenant Mix

To arrive at the number of outlets for each Trade

To arrive at the shop floor areas for the outlet

Premium brands
Bridge to Premium Brands
National & international brands
Local brands for city flavour
Unbranded retailers to create an USP of variety

Page 19
FORMATS & RATE CARD

Page 20
Format - Type & Trade

Space Format-wise
Vanilla Store
Hypermarket
Departmental Store / Large format specialty store
Multiplex
Food court / Entertainment Zones

Trade Category/ Zone -wise

Ground + First floor – Apparel, Books & Accessories, Jewellery &
Watches, Footwear.

Second & Third Floor - Home Stores, Consumer Durables,

Electronics, F & B, Furniture & Furnishing, Entertainment.

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Space Format Allocation

10%
23% Hypermarket
5%
Department
4%
G Vanila
F Vanila
12%
S Vanila
S mini anchor
18%
Multiplex
14%
Food
14%

Page 22
RATE CARD

Page 23
Rate – Area Matrix LG, G &
F Levels
Lower Ground Carpet Area ( sq.ft.) SBA ( sq.ft.) Lease term Efficiency Monthly Rental @
Rental 35/ 100
Hyper Mall 94000 117500 15 yrs 80% 4112500
Vanilla 25000 37313 6 yrs 67% 3731343

Total 119000 117500 4112500

Ground Floor Carpet Area ( sq.ft.) SBA ( sq.ft.) Lease term Efficiency Monthly Rental @
Rental 45 / 80 /110
Anchor 22000 27500 12 to 15 yrs 80% 1237500
Mini Anchor 8000 11940 6 to 9 yrs 67% 955224
Vanilla 35000 52239 6 yrs 67% 5746269

Total 65000 91679 7938993

First Floor Carpet Area ( sq.ft.) SBA ( sq.ft.) Lease term Efficiency Monthly Rental @
Rental 42 / 70 / 100
Anchor 22000 27500 12 to 15 yrs 80% 1155000
Mini Anchor 7800 11143 6 to 9 yrs 70% 780000
Vanilla 35000 52239 6 yrs 67% 5223881

Total 64800 90882 7158881

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Continued… S&
T Levels

Second Floor Carpet Area ( sq. ft.) SBA ( sq.ft.) Lease term Efficiency Monthly Rental @

Rental 60 / 70 / 85 /40

Mini Anchor 20000 28571 6 to 9 yrs 70% 1714286

Fine dining 5000 7463 6 to 9 yrs 67% 522388
Vanilla 30000 44776 6 yrs 67% 3805970
Multiplex 42000 52500 15 yrs 80% 2100000

Total 97000 133310 8142644

Third Floor Carpet Area ( sq. ft.) SBA ( sq.ft.) Lease term Efficiency Monthly Rental @
Rental 40 / 70 / 80 / 50
Food court 50000 62500 9 to 12 yrs 80% 2500000
Fine dining 10000 14925 6 to 9 yrs 67% 1044776
Toys store 5000 7463 6 yrs 67% 597015
Entertainment 15000 21429 9 yrs 70% 1071429

Total 80000 106317 5213220

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Overall Commercials

FROM THE RATE - AREA MATRIX WE DERIVE *

• TOTAL LEASEABLE AREA 5,40,000

• OVER ALL MALL EFFICIENCY 72 %

• TOTAL RENTAL AMOUNT / ANNUM 40 Cr

• AVERAGE RENTAL / SQFT / MONTH Rs 60

Deposit for Anchor & Vanilla stores 10 months

Escalation for Anchors 12 % every 3 years

Escalation for Mini anchors / Vanilla stores 15 % every 3

years

* The mentioned figures could vary from the final as layouts are in process of change
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TRANSACTION DYNAMICS & TIMELINES

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Mall Leasing Dynamics

Insights from the past

• Mall rentals at markets like Delhi & Mumbai have escalated by 200 %
from start of project to structure completion stage. They failed to
accumulate the benefit due to hasty preleasing

• Key malls have been fully leased out a year back, and are yet to start
operations for various reasons making it either outdated or
unavailable to today's new retail entrants.

• Lack of variety in retail formats as marketing of space is rarely done

by innovative practices and more carried out by immediate need to
lease

• Mismatch in the numbers of Anchors versus Vanilla stores thus

creating an experience imbalance at a mall

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Mall Leasing Dynamics

Way forward

• The Mall to be marketed in a phased manner to understand its

relevance to market dynamics and ground realities at every stage

• Key formats to be roped in to enhance the Malls brand image to form

the stage for further leasing.

• 30 to 35 % of shops to be leased out only during the nearing of

structure completion, resulting in the below outcomes;

A. Making room for new retail entrants both International & National
B. Delivering higher rental values for a near completed Mall as
occupation can be done almost immediately
C. Higher competition among retailers both National & International
would further drive rentals

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Hotel Block

• A luxury or business class hotel would be targeted for this

development due
to the following attributes

A. 200 plus rooms in a 2 lakh sqft hotel block

B. Room sizes vary from 250 sqft to 350 sqft
C. Being a part of a riverside development would accentuate its
ambience

• The Hotel transaction could be worked out in the following

methods

A. A minimum guarantee amount or revenue share whichever is

higher
B. A Joint venture model
C. Sale of hotel block

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 Leasing Time Lines

70

60

50

40
% Leased
30

20

10

0
June.2007 July.2007 Aug.2007 Sep.2007 Oct.2007 Nov.2007

Simultaneous leasing across the various formats starting with anchors keeping in mind the
brand & store size mix

LOI / MOUs signed as confirmation with partial payment of deposit is taken into account for
this chart

At least 30 % of space would be held back to be leased at a later date or when near
completion of construction

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PROJECT MARKETING PROCESS

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Project Marketing Process

Pre Leasing

Concept finalization & creative strategy to optimize

development layout

Title documents

Demographic Study

Project Presentation to C&W Retail team

Resource allocation

Resource Orientation on the project

Financial Analysis

Assessment of CAM Charges

Finalization of Transaction documents

Page 33
Project Marketing Process

Leasing

Marketing by Invitation & Client Selection

Presentation of Project

Space Allocation

Negotiations

Filing of discussion Progress

Documentation

Progress reports to the developer

Progress report to retailers signed

Filing of documentation

Page 34
Project Marketing Process

Post Leasing

Fit-out guide

Finalization of house rules

Invitation to possession

Online information kit to retailers

Planning of Mall Launch

Handing over to developer

Option of Mall Management Services

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 C&W MALL MANAGEMENT THE
FUTURE

Page 36
Mall Management Services

Currently this service line is active in Europe and the

same is in
the process of being set up in India in the coming
months.

Asset Management – Operations, Security, Services

&
Car parking management

Marketing & Promotions – Indoor & outdoor publicity for

branding and promotions.
Space
selling at the Mall

Finance & Administration – Rent collection, renewal of

contracts
and monitoring of house
rules. Page 37
Thank you

Page 38