Feasibility Report For Shopping Mall Special Reference To Hyderabad

FEASIBILITY REPORT FOR SHOPPING
MALL SPECIAL REFERENCE TO HYDERABAD
A DISSERTATION
Submitted in partial fulfillment of the
requirements for the award of the degree
of
MASTER OF ARCHITECTURE
SOUMENDRA PATNAIK
YX
DEPARTMENT OF ARCHITECTURE AND PLANNING

INDIAN INSTITUTE OF TECHNOLOGY ROORKEE
ROORKEE - 247 667 (INDIA)
JUNE, 2006
CANDIDATE'S DECLARATION
I hereby certify that the work, which is being presented in the dissertation entitled
"FEASIBILITY REPORT FOR SHOPPING MALL- SPECIAL REFERENCE TO
HYDERABAD" in partial fulfillment of the requirement for the award of the degree of
MASTERS OF ARCHITECTURE submitted in the Department Of Architecture And
Planning of Indian Institute Of Technology, Roorkee is an authentic record of my own
work carried out during the period from August 2005 to June 2006 under the supervision
of Prof P.K Patel.
The matter embodied in this dissertation has not been submitted by me for the award of
any other degree.
(SOUMENDRA PATNAIK)
CERTIFICATE
This is to certify that the above statement made by the candidate is correct to the best of
my knowledge.
Dated: 2,c' O4 (; vvw)

rof. Prabhubhai K. atel
(Thesis Guide)
Dip. In Arch, C. P.E.T,Ahmedabad

M .Arch. (BIdg.Sc $ Tech), U.O.R, Roorkee
PG Dip (Housing, Planning, Building), HIS
Bouwcentrum, Rotternderm, The Netherlands
Department of Architecture $ Planning

Indian Institute of Technology, Roorkee
ACKNOWLEDGEMENT
My heartiest thanks & gratitude to all who always remained close to me and helped me
a lot in giving the much required suggestions & direction to this small endeavour of
mine
Prof P.K.Patel, Thesis Guide ..................for providing me a tension free and creative
mental environment to nurture my thought process.
Prof R.K.Sahu (Former HoD,Architecture & Planning) ...............for guiding me and

always keeping me in track while I was going away from my path.
Dr. Pushplata ..............................for her constructive criticism .

Madhusmita ...................you cared for me when things seemed tough.
Kishu ....................your vital support at the fag end of the thesis.
M.P.Avinas....... ..............you made my life easy with your ideas.

R. Karthik ......................you made it all stress -- free in those stressful moments.
Kalyan ................your support at a very crucial stage of the thesis.

My sisters...............Sweta & Sony.........for your mental support.
My parents...........for their understanding and faith on me.
............... Soumendra Patnaik

ABSTRACT
The thesis aims to highlight "The Rote of Feasibility Studies in India's Emerging
Shopping Center Industry".
There has been a plenty of concern over the apparent over-supply and impending failure
of several shopping centre projects coming up across India. The current mindset of mall
developers in India is "Aim and Fire", meaning just jump into shopping centre creation
without really understanding the viability of the project."
The thesis is an attempt to underscore the critical importance of Feasibility Analysis
before launching any such large-scale retail project which ideally demands very huge
investment.
The thesis emphasizes on improved decision-making through perfect understanding of
the very sensitive retail market sentiments. The approach has been purely logical
supported by supporting statistics at every juncture of decision making.
The thesis attempts to address to the basic questions as to
• Why is the feasibility study essential ?
• When should it be done ?
• How it should be done ?

intext of development of shopping centers in India which has already resulted in
mess losses and closing down of many of these centers, perhaps such kind of study
definitely could and should have come to picture much earlier in the Indian scenario.
The long-term viability of any retail development requires a comprehensive and
painstaking study of various influencers, including factoring in the effects of future
competition. With a well-researched, statistical analysis of project feasibility, developers
can avoid expensive errors and develop a project that is closer to being a viable venture.
However to conclude, A Feasibility Study should not be taken as the Law, it's only a too!.
CANDIDATE'S DECLARATION
ACKNOWLEDGEMENTS ii
ABSTRACT iii
CONTENTS iv
LIST OF ABBREVIATIONS v
CHAPTER 1: INTRODUCTION
1.1 INTRODUCTION 1
1.2 SHOPPING MALLS - AN INVESTMENT OPTION 2
1.3 IDENTIFICATION OF THE PROBLEM 5
1.4 AIM & OBJECTIVES 6
1.5 METHODOLOGY 7
1.6 SCOPE & LIMITATIONS 8
CHAPTER 2: HISTORY OF SHOPPING MALLS
2.1 HISTORY OF SHOPPING MALLS 9

2.2 REGIONAL MALLS 9
2.3 STRIP MALLS 10
CHAPTER 3 : SHOPPING MALLS - INDIAN SCENARIO
3.1 EVOLUTION OF THE MALL CONCEPT 11

3.2 MAIN DRIVERS OF THE MALL CULTURE 15
3.3 VITAL PROJECTIONS 16
CHAPTER 4: COMPOSITION OF A TYPICAL 'SHOPPING MALL
4.1 ANCHORS 17
4.2 MINI RETAIL FORMAT 18
4.3 ENTERTAINMENT 19
4.4 FOOD COURT 20
CHAPTER 5: LOCATION ANALYSIS
5.1 INTRODUCTION 21
5.2 LOCATION REQUIREMENTS 21
5.3 SPECIAL NEIGHBORHOOD HAZARDS AND NUISANCES 28
CHAPTER 6: COMPONENTS OF MARKET FEASIBILITY
6.1 CATCHMENTS 30
6.2 MARKET STUDIES 31
6.3 FOOTFALL ANALYSIS 39
CHAPTER 7: COMPONENTS FOR ARCHITECTURAL FEASIBILITY
7.1 FORMAT OF MALL 44

7.2 DESIGN MANAGEMENT 45
7.3 PARKING 46
7.4 ILLUMINATION 47
7.5 AIR-CONDITIONING 48
7.6.ALUMINIUM COMPOSITE PANELS 49
7.7 CONCLUSION 50
CHAPTER 8: COMPONENTS OF FINANCIAL FEASIBILITY
8.1 INTRODUCTION 65
8.2 COST OF THE MALL 65
8.3 RENTALS FOR THE MALL 67
8.4 PRICING OF THE MALL 71
8.5 VARIOUS FINANCIAL RATIOS 72
8.5 PROJECT PHASING 75
8.6 DISPOSAL MECHANISM 76
8.7 PROJECT ZONING 76
CHAPTER 9 : CASE STUDIES
9.1 OVERVIEW OF MALLS AT HYDERABAD

9.2 CASE STUDIES
CHAPTER 10: RECOMMENDATIONS & CONCLUSIONS
10.1 RECOMMENDATIONS
10.2 CONCLUSION
BIBLIOGRAPHY
APPENDIX
APPENDIX II
LIST OF ABBREVIATIONS
BUA Built up area
FAR Floor Area Ratio
_ FSI Floor Space Index
IRR Internal Rate of Return
NPV Net Present Value
Sq ft Square feet
Sq yds Square yards
Sq m Square meters
SWOT Strengths, Weaknesses, Opportunities, Threats

INTRODUCTION
Topics covered in this chapter are :
• Introduction
• Shopping Malls — An Investment Option
• identification of the Problem
• Aim & Objectives
• Methodology
• Scope & Limitations
CHAPTER 1
Introduction
1.1 INTRODUCTION:
As India continues to get strongly integrated with the world economy riding the waves of
globalization, the retail sector is bound to take big leaps in the years to come. The young
population will display the highest propensity to spend and immensely contribute to the
growth of the retail sector in the country.
The country is witnessing a period of boom in retail trade, mainly on account of a
gradual increase in the disposable incomes of the middle and upper-middle class
households. A report by Merrill Lynch, an internationally reputed -research firm has
projected that India will witness the fastest growth in retailing and real estate. Euro
monitor International, a leading provider of global consumer-market intelligence places
India 6th on a global retail development index.
While the economy is growing at 8.5 percent, the retail sector is growing by nearly 30
percent. According to a market estimate, after agriculture, retail is the largest single
sector in India, both in terms of Turnover & Employment Generation.
For the retail sector to achieve further growth, the spread of organized retailing has to
become a national phenomenon. A McKinsey report on India says organized retailing
would increase the efficiency and productivity of entire gamut of economic activities, and
would help in achieving higher GDP growth.

Introduction
The Indian retail sector is estimated to have a market size of about $ 180 billion; but the
organized sector represents only 2% share of this market. Most of the organized
retailing in the country has just started recently, and has been concentrated mainly in
the metro cities. India is the last large Asian economy to liberalize its retail sector.
Organized retailing in India has a huge scope because of the vast market and the
Industry pioneers claim organized retailing has the potential to grow into an Rs 110,000
crore industry in the next five years and offer jobs to an estimated two million people —
roughly two per cent of the entire country's population.
A study conducted by Fitch, expects the organized retail industry to continue to grow
rapidly, especially through increased levels of penetration in larger towns and metros
and also as it begins to spread to smaller cities and B class towns. Fitch expects
organized retail to capture 15%-20% market share by 2010. According to KSA
Technopak, a leading consulting firm, the organized sector will grow to almost Rs.30,
000 crores by 2005, representing 6% of the total retail market.
1.2 SHOPPING MALLS - AN INVESTMENT OPTION:
Fuelling this growth is the growth in development of the retail-specific properties and
malls. While previously it was the large, organized retailers –with their modern, up-
2
Introduction
Market outlets, and direct consumer interface- who had been a key factor driving the
growth of organized retail in the country, now it is the malls which are playing the role.
As India rushes into middle class consumerism, shopping malls have grown at an
exponential pace unmatched anywhere at any time in history. Shopping Malls has been
the most latest architectural revolution of the nation. Indian metros are witnessing huge
growth in the number of malls, particularly in the suburbs where land is available in
plenty and at reasonable rates. The boom has successfully filtered down to smaller
towns.
Projections :
■ The expected demand for quality retail space in 2006 is estimated to be around
40 million square feet, a number that will quadruple to 55.7 million sq-ft. by 2007.
■ Compared to other big cities, Kolkata and Hyderabad are relatively new entrants
in the mall segment, but are witnessing quick growth.
■ Smaller cities like Pune, Ahmedabad, Lucknow, Ludhiana, Jaipur, Chandigarh &
Indore are also expected to see a formidable growth in the growth of malls.
i<
Introduction
■ For example, while a mall in USA is 400,000 to 1 million sq.ft. in size, an Indian
version can be anywhere between 80,000 sq.ft. And 500,000 sq.ft.
■ From 158 malls/shopping centres by end-2005, India to have 358 malls/shopping
centres in 2007.
■ Based on ongoing projects, built-up shopping centre area to increase from 32.6
million sq.ft in 2005 to 87.8 million sq.ft in 2007
■ By 2007, north zone to account for 39% of total mall space followed by West
zone (33%), south zone (18%) and east zone (10%).
■ Smaller B-Grade cities to have about 12.8 million sqft of mall space by 2007 -
Ludhiana accounting for 2.5 million sqft & Ahmedabad about 3.4 million sqft.
The strong potential of this industry has attracted corporate houses and real estate
developers to make huge investments in malls across the country. The concept has
been the topmost in the priority of investors because of the spectacular Return on
Investment (ROI) in the shortest time span. Further, to boost the already booming retail
industry is Government of India initiatives in allowing Foreign Direct Investment (FDI) to
the industry, thereby promising huge investments by global players in the near future.
Introduction
As a direct implication, India is certainly forging ahead in being recognized as the "Retail
Destination" in the global map. The indicator being the presence of United Kingdom big
time retail player, TESCO already having its presence at Bangalore. Stalwarts of the
Industry — WAL-MART and like already are warming up to the favorable FDI rules, and
are looking for partnerships with local retailers.
1.3 IDENTIFICATION OF THE PROBLEM:
But looking at the other side of the coin, the scenario demands serious thoughts to be
poured at the earliest. Studies reveal that though the inception of the concept is very
recent, already lots of malls are not yielding the profits proportional to the volume of
investment invested.
In this era of information technology, wherein information transfer is so rapid and the
news in one part of the globe reaches the other part in no time, we are definitely not
providing the best of the picture to the potential foreign investors in spite of the initiatives
by Gol
Supporting Statistics:
■ The capital is the epicenter of the boom, with as many as 100 malls—some
estimates put the number at 150—planned for New Delhi and its vicinity in the
5
Introduction
next three years. The only one hitch is many of these malls will struggle to make
money.
■ Market Sources suggest many existing ones are already bleeding and many
retailers are moving away.
1.4 AIM & OBJECTIVES:
To suggest measures to make the concept of Shopping Malls not only a viable but
sustainable venture of the Venture Capitalists.
The objectives through which my aim shall be fulfilled are :
• . To Analyze the location of the Shopping Mall in terms of catchments
,surroundings & macro/micro accessibility.
• To Identify upon the best suited Tenants for the Shopping Mall.
• To Identify the perfect Tenant Mix for the Mall.
• To Provide the Best Configuration — Horizontal / Vertical.
• To Analyze the case studies with respect to financial performance.
• To Lend an USP to the Mall so as not only to cope with Existing Competition &
fetch higher returns.

Introduction
1.5 METHODOLOGY:
Observation
B-ased on field Based on Literature

J
Identification of Project
Aim Objective $ Scope
Detailed Literature Study
Selection of Project for Study
I Data Collection
Feasibility of Shopping Malls
Conclusion
Introduction
1.6 SCOPE & LIMITATIONS:
a The thesis will be covering the market analysis so as to understand the
preference of tenants in the shopping centers.
• The financial aspect involved in the feasibility study is only for general
understanding.
■ Detailed cash flow analysis is not included in the scope.
■ The thesis is not intended for any particular location.
■ The feasibility study need to be customized as per the location.

HISTORY OF SHOPPING MALLS
This chapter gives a clear idea of the entire evolution of the concept of Shopping
Malls, as and when it moved across the fourth dimension — Time. The context
here is global.
Topics covered in this chapter are:
• History of Shopping Malls

• Regional Malls
• Strip Malls
CHAPTER 2
History of Shopping Malls
2.1 HISTORY OF SHOPPING MALLS:
A shopping mall (or simply mall), shopping center, or shopping arcade is a building or
set of buildings that contain stores and have interconnecting walkways that make it easy
for people to walk from store to store. The walkways might be enclosed. In the United
Kingdom and Australia these are also called shopping centres, shopping arcades as
well as shopping malls. In North America the term "mall" is preferred.
Mall can refer to a shopping mall, which is a place where a collection of shops all adjoin
a pedestrian area, or an exclusively pedestrian street, that allows shoppers to walk
without interference from vehicle traffic. Mall is generally used in North America and
Australasia to refer to large shopping areas, while the term, arcade is more often used,
especially in Britain, to refer to a narrow pedestrian-only street, often covered or
between closely spaced buildings. A larger, often only partly covered but exclusively
pedestrian shopping area is in Britain also termed a shopping precinct , or pedestrian
precinct. The majority of British shopping centers are in town centers, usually inserted
into old shopping districts, and surrounding by subsidiary open air shopping streets. -
2.2 REGIONAL MALL:
A regional mall is a shopping mall which is designed to service a larger area than a
conventional shopping mall. As such, it is typically larger, and offers a wider selection of
stores. Given its wider service area, these malls tend to have higher-end stores that
need a larger area in order for their services to be profitable. Regional malls are also
w
found as tourist attractions in vacation areas. Super-regional malls are usually shopping
centers with over 1 million square feet of retail space and serves as the dominant
shopping venue for the region that it serves. A number of large out-of-town "regional
malls" such as Meadowhall were built in the 1980s. and 1990s, but there are only ten of
them or so and current planning regulations prohibit the construction of any more. Out-
of-town shopping developments in the UK are now focused on retail parks, which
consist of groups of warehouse style shops with individual entrances from outdoors.
Planning policy prioritizes the development of existing town centres, although with
patchy success.
2.3 STRIP MALL:
Strip malls are a recent development, corresponding to the rise of suburban living after
World War II in the United States. As such, the strip mall development has been the
subject of the same criticisms leveled against suburbanization and suburban sprawl in
general. In the United Kingdom these are called retail parks or out-of-town shopping
centres.
A strip mall is a shopping center where the stares are arranged in a row, with a sidewalk
in front. Strip malls are typically developed as a unit and have large parking lots in front.
They face major traffic arterials and tend to be self-contained with few pedestrian
connections to surrounding neighborhoods.
10
In the U.S., strip malls usually come in two sizes. The smaller variety is more common,
and often located at the intersection of major streets in residential areas; they cater to a
small residential area. This type of strip mall is found in nearly every city or town in the
U.S. They are service-oriented and will often contain a grocery store, video rental store,
dry cleaner, small restaurant, and other similar stores. In the past, pharmacies were
often located next to the grocery stores, but, now, the drug store is often free-standing in
the parking lot. Sometimes, gas stations, banks, and other businesses will also have
their own free-standing buildings in the parking lot of the strip center.
The other variety of strip mall in the U.S. has large, big box retailers as the anchors,
such as Wal-Mart or Target. They are sometimes referred to as power centers in the real
estate development industry because they attract and cater to residents of an entire
population area. The type of retailers may vary widely--from electronics to bookstores to
home improvement stores.
There are typically only a few of these type of strip malls in a city, compared to the
grocery store-anchored strip mall. Some of these strip centers may only have three of
four of these large retailers in them, while others may have a dozen or more major
retailers.
Some strip malls are a hybrid of both of these types. Strip malls vary widely in
architecture. Older strip malls tend to have plain architecture with the stores arranged in
a straight row; in some cases there are vacant stores. Newer strip malls are often built
11
with elaborate architecture to blend in with the neighborhood or be more attractive. In
some cases, strips malls are broken up into smaller buildings to encourage walking.
Sometimes the buildings will wrap around the parking lot to hide the parking from the
road or residential areas.
Due to land use issues, strip malls in the United Kingdom are typically found on the
edges of cities on green field sites, and are known as out of town shopping centres.
Ones in more urban areas (often brown field redeveloped sites) are more typically
known as retail parks.
12
SHOPPING MALLS - INDIAN SCENARIO
This chapter gives a brief of the evolution of the concept of Shopping Malls, as
and when it moved across the fourth dimension — Time. Now. we are
concentrating on the Indian Scenario and will try to understand the
metamorphosis from the typical kiranawala format to the modern mail format.
• Evolution of the Mall Concept

• Main Drivers Of The Mall Culture
• Vital Projections
CHAPTER 3
Evolution Of The Malls — The Indian
3.1 EVOLUTION OF THE MALLS - THE INDIAN WAY
Evolution of the Mall Concept:
The mall is a mix of retail, multiplex and entertainment zone with some large format
anchors. It's an organized retail format and there is only 1 — 2% of the organized
retail in India. There is historic change in consumer market and an revolution has
come at present age in retail market. The market is maturing with time scale and the
concept of western malls are coming in India. The transitional change in the format is
as follows:
Pre 1990's
■ Traditional Old City & New City High Street

■ Cinemas
• The Air Conditioned Markets
■ Large Home Grown Stores
1990's
m Evolution of the Integrated Shopping Centre & The Mall

■ Resurgence of High Street with Branded Formats
■ Multiplexes & Entertainment Centers With Video Arcades
2000 & Beyond
■ Malls - Small, Med., Large & Theme Malls

■ Large Shopping Centers
■ Family Entertainment Centers
9 Amusement Parks
13
Evolution Of The Malls — The Indian Way
• Discount Stores
• Hyper Markets
• Multiplexes & IMAX
6 Departmental Stores & Super Markets
Larger
Mafls
MARKET MATURITY
DIAGRAMATIC REPRESENTATION OF MARKET MATURITY WITH TIME SCALE
Old trend - Tried, Tested & Extremely Resilient
14
Evolution Of The Malls — The Indian Way
New trend - The experiment in

organized retailing
Di et fpr siags
s.6.t iwoltiL on
Brand5 have grown. by "format" idgration ant i b rda ces hd ti on H
Pr

C.
Tr rit
3.2 MAIN DRIVERS OF THE MALL CULTURE:
• One Stop Shop Concept
• Changing Demographics — (increasing proportion of the young middle class)
• Rising incomes and improvements in infrastructure
• Growing consciousness of the consumer about product quality and services
• Easy finance options at low interest rates changing the consumption pattern
n Shopping Experience
15
Evolution Of The Malls -- The Indian Way 4
3.3 VITAL PROJECTIONS:
• Indian middle class with income between Rs 2lakh & Rs 10lakh to grow from 57
million in 2001-02 to 92 million by 2005-06 & further to 153 million by 2009-10.
• Almost 7 million individuals will enter 20-34 age group every year.( the target
group)
■ National Council of Applied Economic Research (NCAER) classified
approximately 50% of the Indian population as low income in 1994-95; this is
expected to decline to 17.8% by 2006-07.
-
DEMO CHART
A iii '% of population 1997 2002 2007 2012

Under l5years 37.2% 33.5% 30.0% 282%
15-59 561% 593% 62.3% p632%
ui.ghe'r then all

developing nations
16
COMPOSITION OF A TYPICAL SHOPPING MALL
This chapter briefs you about the typical composition & combination of a typical
shopping mall.
Topics covered. in this chapter are :
• Anchors
• Mini Retail Format
• Entertainment
• Food Court
CHAPTER 4
Composition Of A Typical Shopping Mall
4.1 ANCHORS:
Anchors are referred to those large retail formats which are detrimental . to get the
footfalls to the shopping malls. They are generally located at the most conveniently
accessible spaces of the entire mall. They enjoy the maximum coverage in terms of the
area occupancy.
The factor for deciding the tenants depends on consumers. Studies on spending
patterns of consumers have identified some of the chief drivers of retail.
_ Books.Music
jEnfegarpm ntyu & G ff
T: ____
p Dnvers of Retail ~~
S Grocery
afh Care - Clofhrr~g &

Fashion
frBeveraes ~ hip
Source: ICICI Property Services Research on Retail
17
4.1.1 FOOD RETAILERS:
There are large number and variety of retailers in the food-retailing sector. Traditional
types of retailers, who operate small single-outlet businesses mainly using family labour,
dominate this sector in comparison, super markets account for a small proportion of
food sales in India. However the growth rate of super market sales has being significant
in recent years because greater numbers of higher income Indians prefer to shop at
super markets due to higher standards of hygiene and attractive ambience.
4.1.2 HEALTH & BEAUTY PRODUCTS:
With growth in income levels, Indians have started spending more on health and beauty
products Here also small, single-outlet retailers dominate the market. However in recent
years, a few retail chains specializing in these products have come into the market.
Although these retail chains account for only a small share of the total market, their
business is expected to grow significantly in the future due to the growing quality
consciousness of buyers for these products.
4.1.3 CLOTHING & FOOTWEAR:
Numerous clothing and footwear shops in shopping centers and markets operate all
over India. Traditional outlets stock a limited range of cheap and popular items; in
contrast, modern clothing and footwear stores have modern products and attractive
displays to lure customers. However, with rapid urbanization, and changing patterns of
Consumer tastes and preferences, it is unlikely that the traditional outlets will survive the
test of time.
4.1.4 HOME FURNITURE & HOUSEHOLD GOODS:
Small retailers again dominate this sector. Despite the large size of this market, very few
large and modern retailers have established specialized stores for these products.
However there is considerable potential for the entry or expansion of specialized retail
chains in the country.
4.1.5 DURABLE GOODS:
The Indian durable goods sector has seen the entry of a large number of foreign
companies during the post liberalization period. A greater variety of consumer electronic
items and household appliances became available to the Indian customer. Intense
competition among companies-to sell their brands provided a strong impetus to the
growth for retailers doing business in this sector.
19
4.1.6 LEISURE & PERSONAL GOODS:
Increasing household incomes due to better economic opportunities have encouraged
consumer expenditure on leisure and personal goods in the country. There are
specialized retailers for each category of products (books, music products, etc.) in this
sector. Another prominent feature of this sector is popularity of franchising agreements
between established manufacturers and retailers.
Tenant Occupancy for Existing Malla in India

2% p Entertainment
4%
17%
~k ✓
gApparel
o Footw ear
o Books
y4 ~z.~~ r
v~~'
~ ..
® Watches
6%
Et Furnishing
2% D Grocery
D Restaurant
p Home Items
in Others
40%
2%
In today's time, highest tenancy in a mall is of Apparel i.e. 40% of the total space, which
shows the consumer pattern that consumer goes to mall where they get all brand
options under one roof. The share of furnishing and footwear is only 2%, which is the
least as shown in table above.
20
LOCATION ANALYSIS
This chapter is a brief regarding the importance of site location for this very
sensitive retail industry.
• Introduction
• Location Requirements
• Special Neighborhood Hazards And Nuisances
CHAPTER 5
Location Analysis
5.1 INTRODUCTION:
Before the feasibility process can begin, subject properties must meet specific location
requirements. The appraisal process is the investor's tool for determining if a property
meets the minimum requirements and eligibility standards for an insured return. In
addition, these standards provide a context for the investor in performing the physical
inspection of the property.
5.2 LOCATION REQUIREMENTS:
A. Neighborhood definition
B. Competitive locations
C. Economic trends
D. Land use restrictions
E. Community services
F. Transportation
G. Utilities and services
H. Neighborhood change considerations
I.Marketability
J. Small community market preferences
K. Study of future utility
21
Location Analysis
The purpose of location analysis is to identify the various location characteristics that
affect the Marketability and the value of the subject property.
Location analysis requires the following :
■ Determining the desirability and utility of the site.
■ Determining the degree and extent to which the site, because of external
influences, shares in the market for comparable and competitive sites in the
community.
■ Forecasting the likely changes at the site because of justifiable future trends.
■ Appraising the current situation and knowledge of the various trends that could
affect the valuation of the real property.
The principal of change is fundamental to appraising real estate and to properly
analyzing a location. Evaluate the direction of these trends and determine their effect, if
any, on the current value of the subject property.
A. NEIGHBORHOOD DEFINITION
The investor must clearly define the boundaries — north, south, east and west — of the
subject neighborhood. By defining the neighborhood, the investor can extract pertinent
information on which to base valuation conclusions.
22
Location Analysis
B.COMPETITIVE LOCATIONS
Locations are competitive when they are improved with, or appropriate for, residential
properties that are similar in accommodations and sales price or rental range for similar
residents or prospective occupants. Compare features of the subject location with the
same features of competitive locations within the community. An acceptable location
must be related to the needs of the prospective occupants and to the alternatives
available to them in other competitive locations.
C. ECONOMIC TRENDS
The investor must give consideration to, and include in the value analysis, the
economic trends of a neighborhood and the general area, including :
■ price and wage levels (the purchasing power of community occupants)

■ employment characteristics
■ current supply and demand for residential dwellings, including projects
under construction
® taxation levels
• building costs
■ population changes
■ activity of real estate sales market and mortgage interest rates
D. LAND USE RESTRICTIONS
Location analysis determines effects of actual and potential neighborhood land use on
the subject location. The following factors form patterns for present and future land uses:
23
Location Analysis
Zoning
The investor should consider the effect on the value of appropriate and well drawn
zoning ordinances. Land-use controls that receive public approval and are strictly
enforced protect residential locations from adverse influences that diminish the
desirability of sites. -
Protective Easement/Covenants
Properly drawn protective covenants have proven more effective than zoning regulations
in providing protection from adverse environmental influences. When combined with
proper zoning ordinances, these covenants provide the maximum legal protection to
ensure that a developed residential area will maintain desirable characteristics or that a
proposed or partially built-up neighborhood will develop in a desirable manner.
Inharmonious Land Uses
The investor must identify all inharmonious land uses in a neighborhood that affect
value. Clearly define the current and long-term effect that inharmonious uses will have
on the market value and the economic life of the subject property.
Natural Physical Features
The investor must consider favorable and underlying topography and site features,
including pleasing views, wood lots, broad vistas and climatic advantages. Streets that
24
Location Analysis
are laid out with proper regard to drainage, land contours and traffic flow show good
design and increase the desirability of the neighborhood.
Attractiveness of Neighborhood Buildings
The overall appeal of a neighborhood is strengthened if the buildings in a neighborhood
harmonize with each other and their physical surroundings. A pleasing variety that
results in harmoniously blended properties is desirable but not mandatory. The age of
the structure is not in itself an important consideration; however, the maintenance of the
structure over time has an important impact.
Neighborhood Character
Mobility and economic growth can alter neighborhood patterns. Shopping, recreation,
places of worship, schools and places of employment should be easily accessible.
Character of Neighborhood Structures
The investor must carefully analyze the age, quality, obsolescence and appropriateness
of typical properties in a neighborhood. Take into account the attitude of the user group
as well as the alternative choices available to the specific market under consideration.
25
Location. Analysis
COMMUNITY SERVICES
Community services include commercial, civic and social centers. For a neighborhood to
remain stable and retain a high degree of desirability, it should be adequately served by
elementary and secondary schools, neighborhood shopping centers, churches,
playgrounds, parks, community halls, libraries, hospitals and theaters. A lack of services
in the community should be noted and quantified in the valuation analysis. The investor
must note a change in these services and quantify the effect on value.
E. TRANSPORTATION
Ready access to places of employment, shopping, civic centers, social centers and
adjacent neighborhoods is a requisite of neighborhood stability.
F. UTILITIES AND SERVICES
The investor must consider these utilities and neighborhood services: police and fire
-protection, telephone services, electricity, natural gas, garbage disposal, street lighting,
water supply, sewage disposal, drainage, street improvements and maintenance. Public
services and utilities can affect value and must be quantified. A lack of these services
should be noted and quantified in the valuation analysis.
26
Location Analysis
G. NEIGHBORHOOD CHANGE CONSIDERATIONS
As time passes, desirability changes residential areas in any location. Therefore, give
special consideration to the following :
i infiltration of commercial, industrial or nonconforming use
■ positive and negative effect on value of gentrification
■ changes in the mobility of people (employment shifts)
■ weakly enforced zoning regulation or covenants
H.MARKETABILITY
The demand for home ownership in a neighborhood is directly related to the
marketability of the homes in the neighborhood or in competitive neighborhoods. Home
I ownership rates, vacancies and the marketing time of dwellings in a neighborhood help
the investor determine the strength of market demand and the extent of supply.
I.SMALL COMMUNITY MARKET PREFERENCES
A small town may have its own set of standards in architectural design, livability, style of
mechanical equipment, lot size, placement of structures, nature of street improvements
and in all features of the physical property and environment: Judge each in light of local
standards and preferences.
27
Location Analysis
J. STUDY OF FUTURE UTILITY
The study of future utility is typically covered in the investor's Highest and Best Use
Analysis and includes:
■ selecting possible uses
- ■ rejecting uses that are obviously lower or higher than the most probable
use
■ analyzing differing motives of those buyers
The study of the future uses and utility of a particular property will lead the investor to
the property's Highest and Best Use.
K. Assessment
The real estate tax liability is computed by multiplying the assessed value by the
tax/mileage rate.
SPECIAL NEIGHBORHOOD HAZARDS AND NUISANCES -
• Unacceptable locations
• Topography
• Heavy traffic
■ Overhead high-voltage transmission lines
Location Analysis -
Physical conditions in some neighborhoods are hazardous to the personal health and
safety of residents and may endanger physical improvements. These conditions include
unusual topography, subsidence, flood zones, unstable soils, traffic hazards and various
types of grossly offensive nuisances. When reporting the appraisal, consider location
hazards and.nuisances.
UNACCEPTABLE LOCATIONS
A location is rejected if the property being appraised is subject to hazards,
environmental contaminants, noxious odors, offensive sights or excessive noises to the
point of endangering the physical improvements or affecting the livability of the property,
its marketability or the health and safety of its occupants. Rejection may also be
appropriate if the future economic life of the property is shortened by obvious and
compelling pressure to a higher use, making a long-term mortgage impractical.
These considerations for rejection apply on a case-by-case basis, taking into account
the needs and desires of the purchaser. For example, a location should not be
considered unacceptable simply because it abuts a commercial use; some commercial
uses may not appeal to a specific market segment.
TOPOGRAPHY
There are special hazards caused by unique topography. For example, denuded slopes,
soil erosion and landslides often adversely affect the marketability of hillside areas.
Location Analysis
When evaluating the location, consider earth and mud slides from adjoining properties,
falling rocks and avalanches. These occurrences are associated with steep grades and
must be considered in the location analysis.
HEAVY TRAFFIC
Close proximity to heavily traveled roadways can have a negative effect on the
marketability and value of locations because of excess noise and danger. Properties
backing to freeways or other thoroughfares that are heavily screened or where traffic is
well below grade and at a sufficient distance from the property may not affect value. The
investor must quantify the effect on value if the property is marketable. This adjustment
-should be supported by comparable transactions. This condition could be the reason
that a lender ultimately rejects the property. Do not reject existing properties only
because of heavy traffic if there is evidence of acceptance within the market and if use
of the dwelling is expected to continue.
OVERHEAD HIGH-VOLTAGE TRANSMISSION LINES
No dwelling or related property improvement may be located within the engineering
(designed) fall distance of any pole, tower or support structure of a high-voltage
transmission line, radio/TV transmission tower, microwave relay dish or tower or satellite
dish (radio, TV cable, etc).
30
COMPONENTS OF MARKET FEASIBILITY
This market feasibility is pivotal since it determines the volume of footfalls that is
anticipated in the shopping center.
• Catchments
• Market Studies
• Footfall Analysis
CHAPTER 6
Components of Market Feasibili
6.1 CATCHMENTS:
The marketability of the shopping mall can be discussed under two broad heads:
Macro Level (Catchments)
Micro Level (Project Site)
Macro Level (Catchments) :
■ Primary Catchments
■ Secondary Catchments
a Tertiary Catchments
Primary Catchments covers up to 6 km radius of the site or about 15-20 min driving time.
Secondary Catchments covers up to 6 — 10 km radius of the site or about 20- 30 min
driving time.
Tertiary Catchments covers up to more than 10 km radius of the site or more 30 min
driving time.
Micro Level (Project Site) :
Site SWOT (strength, weakness, opportunity & threat) analysis has been done for the
subject site based on
• Location
• Infrastructure
• Linkages
30
Components of Market Feasibility
• Frontage
A SWOT ( Strengths, Weakness, Opportunities, Threats) analysis of the project site
is a must for going ahead with the actual construction. The proposal if found
mismatched after the said analysis should be dropped down. The project site has to
have a wide frontage and the surrounding roads and accessibility points should be quite
elaborate to support the heavy traffic that is expected to rush in during the weekends
specially which is expected to the prime time for boosting the sales in the malls.
6.2 MARKET STUDIES:
The Positioning Study Outline for a shopping centre includes studies like
• Customer survey
• Competitive Assessment
• Demographic Research
• Income & Expenditure Analysis
• In-Home and Consumer Expenditure Survey
• Market Potential Analysis -
• Tenant Specific Historic Sales analysis
• Tenant Mix Review
• Strategic Consideration.
31
Customer Survey
A Customer Survey would find out what customers have purchased from the shopping
centre, their likes and dislikes, etc.
Demographic Research
A Demographic Research would find out.on a daily basis, the number of people in the
families of customers, and demographic attributes." Demographic analysis for a
shopping centre includes analysis of population in terms of historic, current and future
changes.
Competitive Assessment
While conducting the feasibility study, information about competition should be collected
by visiting trade areas, offices and gathering information like prevailing lease rates,
vacancy, documentation required, location of retailers etc. This would help in developing
an understanding about the same along with providing information on both traditional
and modern formats,"
32
Components of Market Feasibilit
Income & Expenditure Analysis
Expenditure levels are directly related to income levels. Therefore Income Analysis is
equally significant. For this, one needs to find out Personal Per capita Income, Gross
Income, Disposable Income, Discretionary Income, Household Income etc. Gross
Income less taxes is Disposable Income and Income left after expenses like school fees
etc, is Discretionary Income,"
Tenant Mix Review
Tenant mix for a shopping centre would depend upon factors like Market Positioning of a
Centre, its retail mix, Merchandising Depth, Anchors, and International/ National/ Local
Mix. Only those anchors should be brought in who fit the profile of the shopping centre.
A 50:50 mix of Chain Stores and Local operators is recommended,"
The survey based on the below mentioned parameters was essential to understand the
sentiments of the consumers as well as that of the retailers of this very sensitive retail
industry. Refer Appendix — I and Appendix -2.
Some of the findings of the survey:
Hnisehold Re resenting Surveyed ~los

Male 210 84%
Female 40 16%
i1o,ithIv income in=TNR - Nos.:

3 '!o
33
+ pfl 20;OQf1 ':, tIf} 4°f

20,000 - 40,000 38 15%
> 40,000 18 6%
P rofessEon os l
usiness 62 29
1 y ax. Yr•z wv
Service
~'i ~.N~i. 'x
'.,~~i ,2~/~
ee
.~e~
~ ~ ~'~~~ Y r of~ 3aj.c
i6
el:~,. S
Self-employed 16 6%
Student : s P 3 4l3
Housewife 2 1%
Education z .,..,. Nos
i
r a
10+2 • N~ , s. z i4 / 14% .r
Graduate 134 54%

Postgrádutee ` ~- 46 8%0
Professional 31 12%
Others 5 2%
I+rer}ueney afgos ng aut SF eipjig i re Shoppin Movie. isure

for
2 in aweek 26 35 6 21 11% 14% 3% 8%
1 in a week 58 65 41 82 23% 30% 16% 33%
1 in month 126 82 130 95 5040 ' 33% %' . 38°l'o
Twice a month 36 39 - 54 45 14% 16% 22% 18%
Daily 2 16 6 5 1% 6% 2% 2%
Rarely 1 3 12 2 0% 1% 5% 1%
1VIano y ~~ Leisure Sho rn

pp g Ea t~rw g Move
s ent E l f sLyle Slto ~n atrr g M'uvre Leisure _._
►n a. gtant
< 250 10 45 159 86 4% 18% 64O)34%
250-500 45 106 65 95 18% 43a/o -- 26% 3`8%
500 - 1000 60 59 15 48 28°fa ` 24% 6% 19%
1000-1500 30 25 6 12 12% 10% 2% 5%
>1500 95 14 — 5 9; ' 3.$% 6% 2% 4%
1 mierspen of Shppping Eating N o~ Liure ho ping :jatng Ioie..:

M ,; " zt ~ E • r
: s r
Tri1ve n „4 ' . a~ ~3t•y À _
15 min 138 132 141 52 X55% 53°a 56°0 "•.••, 21%;
30 min 102 110 99 115 R 41% =" 44°f% 40% ' 46%
1 hr 6 6 6 38 2% 2% 2% 15%
> 1 hr 4 2 4 45 2% 1% 2% 18%
t•. x
Ttme spent on out►g p ~n " l
S~ho pp g >;at~n .: ~.<:' Shopping ;; . eating
< 30 min 11 49 4%:.2%
<1 hrs 60 65 ' , , : 128k2/0 24%b
1-3 hrs 121 91 °/a 3°
> 3 hrs 48 45 19% 18%
Time spent on outing Leisure Leisure

< 2 hrs 21 8%
2-4hrs 128 :::51%
r1
4-6hrs f 53 21%
>6hrs 48 19%
P eferCer~ce- of goon out 5hopprng✓ l atp 1Vlov~e, ~> e~snrie Shapp.!n ting >t~a ie
Family 146 135 110 126 44%

S9 ~o r 54% Y
Friends 68 103 126 115 31% 41°o e fly S(?°!q: 46%

Self or group 25 12 14 9 10% 5% 6% 4%
Mod~of traSpOrtalr 11~OS °/O

2 wheeler 92 36%
4 wheeler 110 44°
3 wheeler/taxi 15 6%
Public transportation 33 13%
Shappipg;pxelserence Nos
Retail market 31 12%
Shopping mall 201 x,80°!0 ._
Whole sale market 11 4%
Informal bazaar 6 3%
Preference of travel time Nos %

15 min 51 20%
30 min 151 60 `_:
1 hr 25 10%
>1hr 23 9%
Criteria for Shopping/ Eating out/ Movie and Leisure

Ranking Pricing Convenience Ambience Location
Nos % Nos % Nos % Nos %
1 86 35% 96 38% 11 4% 31 12%
2 95 ~~s~3°5 64 30% 21 8% 68 26%
3 44 18% 62 25% 45 18% -103 41.%o
4 24 10% 18 6% 163, 69°/'0 48 19%
35
A. Profile of respondents
1. Approximately 68% have monthly income of less than 20k and only 22% of the
surveyed population has monthly income more than 20k.
2. 84% of the respondents are graduates and out of this 30% are postgraduates and
professionals.
B. Trends in Shopping, Eating, Leisure / Entertainment
1. Out of total 250 respondents, more than 80% like to go for lifestyle shopping
while only 4% respondents like to go to wholesale shops, which is a positive sign
for organized retailing.
2. Approximately 34% of the respondents go for shopping at least once a week and
for eating more than 44% of the respondent go out at least once in a week.
Approximately 61% go for movie at least once a month. Nearly 41% go for leisure
at least once in a week. Thus higher percentage of people prefer to go for
shopping, leisure and eating out, which needs to be incorporated in the project.
Preference for movie is also comparatively very high as nearly everybody go for
movie once a month.
3. Approximately 50% of the respondent spends more than Rs 1000 p month in
shopping; upto 40% spend more than Rs 500 p month on eating out. Upto 64%
spend less than Rs 250 per month on movie and approximately 62% are
spending less than Rs 500 for leisure. Thus this shows that people don't want to
spend money for leisure.
36
4. Over 66% of the respondents spend more than 1 hour for shopping and
approximately 46% spends upto 1 hour for eating out.
5. For entertainment & leisure, upto 91% spends more than 2 hours.
6. A majority to respondents i.e. more than 50% prefers to go out with family for
shopping, eating and leisure closely followed those who go with friends whereas
in case of Movie 50% respondents prefer to go with friends closely followed by
those who go with family.
7. Upto 44% of the people use car as mode of transport for shopping, eating out,
movie and leisure. Thus car parking is the key factor for success of this retail
destination.
C. Preference for the Mall
1. 80% of the total surveyed would prefer to shop in shopping malls and more than
80% people preferred travel time to be not more than 30 minutes.
2. For shopping, eating out and movie more than 80% of the respondent don't mind
traveling for 30 minutes or more. -
3. The Thiruvananthapuram market prefers convenience in shopping, eating, and
leisure, while it is also price conscience and puts price on second rank. While
location and ambience as subsequent third and fourth rank. Thus location and
pricing both are the key factor for a development of mall and leisure activity.
37

The parameters discussed are:
■ Easy accessibility
■ Popularity of the store
■ In store ambience
■ In store service
■ The location of the store
■ Parking facility
■ Affordable price
■ Availability of range of cloths
■ Attractive scheme/ loyalty program
■ Loyalty towards the store
■ Façade
Facade
Loyalty towards the 7%
store
70/
In store ambience
Affordable price 10%
8%
Parking facility In store service

8% 10%
The location of the
store
ooi
Participation of Various Parameters towards Market Feasibility

6.3 FOOTFALL ANALYSIS:
Footfalls for the malls depends on the two basic components:
■ Location
■ Tenants
Whereas the location plays a key role in ensuring the volume of footfalls, the tenants
and the mix play a key role in improving upon the conversion rate — footfalls to sales.
39
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LL
COMPONENTS FOR ARCHITECTURAL FEASIBILITY
This chapter is a brief regarding making the already feasible shopping center a more
sustainable venture not only to cater to the returns of the present investment but to
make it a successful venture beyond the present.
• Format of Mall
• Design Management
• Parking
• Illumination
• Air-Conditioning.
• Aluminium Composite Panels
• Conclusion
CHAPTER 7
Components of Architectural Feasibility
7.1 FORMAT OF MALL:
"Dumbbell" is a highly effective model of mall design. It is an enclosed shopping centre
wherein two major tenants are located at the two ends of the property, so that the
customer travels from one end to another in order to buy things, thereby covering all
stores located in the connecting corridor.
seventh Floor
Sixth Floor
Five Floor
Fourth Floor
Third Floor
Second Floor
First Floor
Ground Floor
1st Basement
2nd Basement
Sample of a Typical Mall Format
A feasibility study helps in deciding the Tenant-to-Tenant Layout Plan, where the
supporting elements would be, Horizontal Configuration, Vertical Configuration,
Placemaking, and creating a Pleasant Public Space Environment.
44
Conclusion :
"As a retailer moves upwards physically, it loses sales. In India, it is at the rate of about
30 per cent.
7.2 DESIGN MANAGEMENT:
One of the most conventional models of design management is "design it first —then,
engineer it" The engineer simply determines...capacity (load), delivery system (piping &
duct distribution), and controls (location of thermostat). Engineering disciplines should
be placed up front, in the early (schematic) stages of design and integrated early into the
architectural thought process. The engineering disciplines should be. included up front
and using of design guidelines can provoke early decisions on materials, systems and
cost parameters. This is a sure way to maintain control over project costs and save
schematic design time as design alternatives can be framed or even eliminated which
may not make sense in engineering terms.
Reduce isolated islands of information. Standardize and customize project, financial,
and budgeting activities to deliver consistent reporting and analysis across your
organization, 24 hours a day, seven days a week. Save time and reduce errors caused
by duplicate data entry. Customer records, contracts, projects, tasks, resources,
budgets, time, expenses, and financial transactions can be entered once, and then used
throughout the system. Analyze project performance for better budgeting. Get up-to-date
project and task profitability data from the financial system. Track and control your
a
Components of Architectural Feasibili
budgets from project initiation to completion, allowing to spot potential cost overruns
before it's too late. Align people, projects, and equipment for optimal results.
7.3 PARKING:
DEVELOPMENT CONTROL RULE ANALYSIS
According to the Building Rules 1999, the permissible F.A.R for various product mix on
the site are presented below in the table :
S.N Building use/ Maximum Maximum Maximum

o. Occupancy Permissible Permissible Permissible
Coverage F.A.R without F.A.R with
(Percentage of additional Fee additional Fee
plot area)
I Residential Al 65 3.00 4
2 Mercantile/Comm 65 2.50 4
ercial F
Note: Area used for parking or plant room inside a building is not reckoned as floor area
in FAR calculations. The additional fee for additional FSI to achieve maximum is Rs1000
per sq m as per the Development Control Rules.
PARKING, LOADING AND UNLOADING SPACES
According to the Municipality Building Rules 1999, the building rules applicable for
providing parking area are:
■ Each off-street parking space provided for parking cars shall be not less than 15
sq. mts.
■ Area (5.5 mts. x 2.7 mts) for two-wheelers.and cycles the area of each parking
space provided shall be not less than 3 sq mts. and 1.5 sq. mts. respectively.
■ For buildings of different occupancies, off-street parking spaces for cars shall be
provided within the plot as specified in the table below :
S.No Occupancy One parking space for every or fraction of
1 Residenital Appartment 7 units (with each unit upto 100 sq mts of

Houses/Flats carpet area)
4 units (with each unit above 101 sq mts
and upto 150 sq mts of carpet area)
2 units (with each unit above 151 sq mts
and upto 200 sq mts of carpet area)
2 Mercantile/ Commercial 100 sq mts of carpet area

building exceeding 75 sq
meters carpet area
Wherever any parking space is required under these rules, 25% of that area shall be
provided additionally for parking scooters or cycles.
7.4 ILLUMINATION : -
Lighting for Shopping Malls has to cater to some of the very basic requirements:
■ Add On to enhance interiors & exteriors
■ Creating Ambience
■ Attract more people
■ Help them in shopping through their eyes
■ Help shoppers to sell well
47
Quality Standards for Lighting Solutions in Shopping Mail
■ Attraction - Excellent Contrast Rendition
■ A suitable Lighting Level
■ Balance Distribution of Brightness
■ Avoiding Glare
■ Light direction and creating shadows
■ Pleasant Light Colors
Reevaluate of lighting needs is a must. There may be areas in which you have too much
light for the tasks being illuminated. Use as much natural lighting as possible. Dealing
with the most basic module of lighting, incandescent bulbs should be replaced to
compact, high efficiency fluorescent bulbs. They are more expensive initially but offer
great energy savings and have greater longevity. Financial burden is double.
■ Pay for the electricity consumed for lighting.
■ Pay for the electricity to run the air conditioning required to remove the heat.
Thus systematically reducing lighting electrical loads makes terrific sense. It's great both
financially and in terms of environment.

7.5 AIRCONDITIONING:
Air conditioning is highly beneficial in a commercial sense for good reasons:
D Enables people to shop & work in spaces, hence more revenue
■ Reduces damage to structures & their contents from excessive humidity and
other contaminants
Air conditioning does represent a significant expense. The expense is not only in first
cost, i.e. the cost of acquisition and installation; it is also in 'operating costs. Air
conditioning load in your mall is substantially greater because of the heat load added by
-lighting
7.6 ALUMINIUM COMPOSITE PANELS:
Advantages of Aluminium Composite Panels (ACP)
■ Attractive and Excellent Look
• Easy, Quick and Economic Transportation, Fabrication & Installation
• Minimum Dead Weight
• Excellent surface flatness and smoothness
• Easily Bendable
■ Resists buckling
■ Low chipping, rippling & staining
• Super peeling strength
49
■ Strong and Durable (20 year warranty on coatings)
■ Excellent torsion strength
■ Even coating with various colors and various texture
■ Color Uniformity & Resists color fading
■ Sound & Thermal Resistant
■ Water, Chemical and Corrosion Resistance
■ Easy Maintenance
■ Perfect Fireproof Performance & Non Toxic
• High Impact Resistance
■ Greater Longevity
■ Recyclable and Re melted at any time
7.7 CONCLUSION:
Clearly Supply Leads .... -

• By Location
• By Format
• By Volume ci 3
But Demand Leads By.....

tIE
::]:i3 •
• Pricing
• Inner Space Allocation Within Malls
50
Hardware
Ensure A Design & Layout, Which
a Attracts consumers.
■ Provides an unparalleled built environment & retains them.
■ Ingress and egress by both public + private transport.
Horizontal movement along the malls to maximise pedestrian flow.
N Vertical movement between levels to encourage customers to use all levels.
Provide Infrastructure & Facilities which support this
a 100 % Air-conditioning & power back up
a More than adequate parking
■ Retail unit size and disposition
■ Choice of materials - particularly floor finishes
■ Lighting - natural and artificial
■ Signage and graphics
■ Information
Software
Tenant Mix Cajoling the consumer to spend more time and money ensuring a
consistency in pricing and overall retail offer.
51
Ensuring Attractiveness :
■ Events & Entertainment
M Incentives & Cross Promotions
M Loyalty Program
■ Brand re-engineering
52
COMPONENTS OF FINANCIAL FEASIBILITY
This chapter briefs about the ultimate reality — Finances. This is where the boardroom
discussions finally trickles down to reality and lands to its tangible form.
• Introduction
• Cost of the Mall
• Rentals for the Mall
• Pricing of the Mall
• Various Financial Ratios
• Project Phasing
• Disposal Mechanism
• Project Zoning
I
Components of Financial Feasibili
8.1 INTRODUCTION:
Feasibility studies help in contrasting enthusiasm with reality; they quantify ideas and
delineate risks by minimizing uncertainty. They help to secure planning permission,
major tenants and financing of a project. Further, they enable prioritization of
investments, and comparative study between alternative development options,"
A feasibility study should be started immediately after a project has been identified —
much before the investment has taken place. The primary objective of any feasibility
study is to create an understanding of the market and its trends; determine market
opportunity, assessment of risk and creating a document for multiple interests like
investors, developers, etc.
8.2 COST OF THE MALL:
Cost of Site
Predevelopment Expenses
Basic Construction Cost
Finishing: Shell & Allowance vs. Turn Key
Leasing Costs
Common Area Expenses (CAM/HVAC)
65
Components of Financial Feasibility
Analysis for costing of mall cum multiplex has been done based on the earlier in-house
experience of the company and based on the architects costing for various malls in
other places India. Multiplex costing has been done by renowned architects for two
projects.
Multiplex Costing
Activity Cost to Rs =p sqft
Structure 285
Finish (Base) 115
Finish (Super) 450
Electrical 65
Plumbing 45
Firefighting 45
A/C 320
Ventilation 35
Telecon/ BgM 15
IBMS 17
Signage 8
Total 1,400
Basement Costing
I Sub Structure - 200

2 Plaster & Screed 40
3 Electrical 30
4 Sanitation & Plumbing 15
Sub Total 285
Superstructure costing is shown in table below with basic infrastructure facilities
• Rate inn Rs p Rate initsp

Su' .er Struc ure ; _s. eft
I Structure 6 IVAC
Cinema Complex 600 Cinema Complex 225
Sp ping Etc 420 Shopping Etc 167
2 laster & Screed 7 Fire detecting & Fighting

Shopping Etc 232 Shopping Etc 65
Communication &
3 External Finish 8 Security
Shopping Etc 80 Shopping Etc 14
4 Electricals 9 BMS 18
Cinema Complex 74
ShoppingEtc 185 10 Signage 9
5 Sanitary & Plumbing 11 Misc. 10

Cinema Complex 74
Shopping Etc 111 Sub-Total
Cinema complex 1,455
Shopping & Others 1,311
8.3 RENTALS FOR THE MALL:
Real estate is the most important parameter deciding the profitability of any store. Real
Estate in terms of location as well as the cost associated with it will affect the footfalls
and the finances of the company. The affect could be very well seen in terms of number
of stores in Chennai and in Mumbai. Property rents being lower has facilitated the
growth of grocery chains like food-world and Subhiksha in South India. Mumbai as one
of the costliest city in World made the business proposition un-lucrative at least for the
grocery retailers. High rentals of Rs150-200 in Mumbai as compared to Rs 50-80 in
Banglore or Rs30-60 in Pune are the deterrent for any retailer. For a grocery retailer to
succeed where gross margins are 12% at max rentals above Rs xx are simply
unaffordable. The concept of WalMart like mega stores in the far flung areas of the city
is still to catch on and could not substitute the problem.
M
à y...>~
Mumblil Rnta
W ., a 4 .m'6S;
Dtti
Locality Rates Locality Rates LoaHty
Locality Rates Locality Rates
Cbs 150 CP (innerlGir e) 220 M.G. Road t :M.G.pp 125
;=6~t 175 Basant Lo ; 150 Conirnerca Road 125 'Jar t aharrj Road 110
Church Gate 175 Saket &} Brigade Road 190 East Street 70
Kerb Comer `tom SouthEx 175 Korarnanrg ata 40 Oh .Patil Road 75
Napean Sea Road. Nagar
17.5 Lafpat Nagac 100 Jayanagar 45 'fit club Road 75
Ding Road 200 Raaud Garden 1G tfldtrifld& 40
Hll Roadd 1 3 Greater K ifash I 150 i?etes: Fs per sq ft per ar enth)
iuhu 110 1Iüici 75 Source: (rJgM Frank
Lokhandwa a 125 °Gu on 50
Rentals In Large Cities :
In cities like Mumbai though the solution could be smaller store size with higher no of
stores. By generating higher footfalls per square-feet and having higher no of stores
thereby educing catchment area but catering to same population as in other cities
(because of higher population density) Retailers can circumnavigate the problem.
Another problem akin to retail stores is the premium in markets like Mumbai for the
properties for stores_ over the same commercial properties in the same locality. Having
smaller store can again help solving the issue. Some of the factors helping the industry
are increased supply in cities like Mumbai. Old textile mills in prime localities in Mumbai
are now rechristining themselves as entertainment complexes. This sudden jump in
supply made possible due to change in government policies has affected the retail
scenario to a great extent in Mumbai. Cross-Roads near Haji Ali is was earlier a
manufacturing unit but now has become a major destination in the town. India is
witnessing an exponential growth in the space occupied by organized retailers. A year
back it was barely equal to one WalMart store but is expected to be in excess of 8mn sq
ft by 2003.
68
(000.s - ft, Mumbai Delhi Ban lore Pone

20GI 200 100 100
2002 1400 1000 300 300
2003 1800 1400 850 425
Source Kn#-ght Frank
After analyzing the type of format of malls and the tenants in different malls, a
correlation has been made between area and pricing for different formats as shown
below. Anchor tenants will be the least priced as compared to the small format shops
and jewelry shops.
A Typical Rent Calculator below gives a clear idea of the Working out of the Rentals for
the Shopping Mall.
Land Area 2.07 Acres

Land Area 10,000 sq yd
Land Area 90,000 sq ft
FSI 1.75
Allowable Common Areas as % of
BUA 35%
Gross FSI Achievable 2.36
Built Up Area 157,500 Sft
Common Areas 55,125 Sft
Total Achievable BUA 212,625 Sft
Ground Coverage - 40% Sft
Floor Plate 36,000 Sft
No of Floors 6 Nos
Parking Area
Basement -1 45,000 Sft
Basement -2 45,000 Sft
Basement -3 - Sft
Total Basement Area 90,000 Sft
No of cars 245 Nos
No of two wheelers 800 Nos
69
My
Land Rate 35,000 Rs per sq yd
Land Rate 169,400,000 Rs per Acre

Site Development Rate 50 Rs per sq ft
Construction Rate* 1,000 Rs p s ft
FSlRate 1,646 Rs p s ft
lnfrstructure/facilities/fitouts 100 Rs p s ft
Basement Const. Rats 200 Rs p sq ft
ONO
Land Cost 350,000,000 Rs
Construction Cost 212,625,000 Rs
Site Development Cost 4,500,000 Rs
Infrastructure Cost 21,262,500
Basement Cost 18,000,000 Rs
Subtotal 606,367,500 Rs
Permissions & Other Charges 60,638,750 Rs
Total Project Cost 667,026,250 Rs
Excluding Land Cost 317,026,250 Rs
Total Rate 3,137 Rs p sq ft

Profit Margin 30%
= 941 lNR p sq ft
FtnS!ate 4,07k p ft
Expected ROI 12.0%
Average Annual Rentals 489 Rs p sq ft o year
Space per Car 220 sq ft

Space per two wheeler 45 sq ft
of total parking
Area for Car Parking 60% area
of total parking
Aera for Two wheeler parking . 40% area
Other costs:
Permissions, approvals, fees,
Brokerage 10% of project cost
*Constrion rate includes basic building construction, flooring, etc
70
Components of FinancialFeasibility
Floor Rent Area

GF 85 36,000
IF 65 43,200
2F 40 43,200
3F 30 43,200
4F 30 43,200
5F
Average: (G+4) 50 208,800
Jewelers / small
format shops
.;, Food
_ Entertainment
Anchor
----Area (sq.ft.)-----
8.4 PRICING OF THE MALL:
The shopping malls is a matter of huge investment and hence the expected Return on
Investment (ROI) has to be early to as to minimize the " interest" factor. This implies high
volume of safes. The sales is but proportional to the volume of footfalls.
After deriving the product mix, area analysis is done at different floors with the products
at different levels of mall and distributing all the product mix in proportion as per the
demand and feasibility.
71
The area analysis is done in three ways —
■ Carpet area
■ Built-up area and
■ Super Built-up area
Costing is done on the basis of built-up area.
Revenue Generation is done on the basis of super built-up area.
8.5 FINANCIAL RATIOS:
After deriving the product mix and area analysis; project costing, financial feasibility and
returns are discussed out in this chapter.
Total project costing, annual recurring costs and total receivable are taken into account
to calculate Internal Rate of Returns (IRR), Return on Investment (ROI) and Net Present
Value (NPV), Interest Service Coverage Ratio, Asset service Ratio of the project have
been calculated.
NET PRESENT VALUE (NPV) :
Net present value (or NPV) is a standard method in finance of capital budgeting — the
planning of long-term investments. Using the.NPV method a potential investment project
72
should be undertaken if the present value of all cash inflows minus the present value of
all cash outflows (which equals the net present value) is greater than zero.
A key input into this process is the interest rate or "discount rate" which is used to
discount future cash flows to their present values. If the discount rate is equal to the
shareholder's required rate of return, any NPV-> 0 means that the required return has
been exceeded, and the shareholders will expect an additional profit that has a present
value equal to the NPV. Thus if the goal of the corporation is to maximize shareholders'
wealth, managers should undertake all projects that have an NPV > 0, or if two projects
are mutually exclusive, they should choose the one with the highest positive NPV.
INTERNAL RATE OF RETURN (}RR) :
The internal rate of return (IRR) is defined as the discount rate that gives a net present
value (NPV) of zero.The IRR method will result in the same decision as the NPV method
for independent (non-mutually exclusive)projects, in the usual cases where a negative
cash flow occurs at the start of the project, followed by all positive cash flows. In most
realistic cases, all independent projects that have an IRR higher than the hurdle rate
should be accepted. Nevertheless, for mutually exclusive projects, the decision rule of
taking the project with the highest IRR - which is often used - may select a project with a
lower NPV.
73
In fairly unusual cases, several zero NPV discount rates may exist, so there is no unique
IRR. The IRR exists and is unique if one or more years of net investment (negative cash
flow) are followed by years of net revenues. But if the signs of the cash flows change
more than once, there may be several IRRs. The IRR equation generally cannot be
solved analytically but only via iterations.
One shortcoming of the IRR method is that it is commonly misunderstood to convey the
actual annual profitability of an investment. However, this is not the case because
intermediate cash flows are almost never reinvested at the project's IRR; and, therefore,
the actual rate of return is almost certainly going to be lower. Accordingly, a measure
called Modified Internal Rate of Return (MIRR) is often used.
Despite a strong academic preference for NPV, surveys indicate that executives prefer
IRR over NPV. Apparently, managers find it intuitively more appealing to evaluate
investments in terms of percentage rates of return than dollars of NPV. -
74
8.6 PROJECT PHASING:
Marketing for the malls is done parallel to the construction so as to give the best rentals
with the best of the retailers brand in the mall.
Anchor and food court in the first phase will start functioning from second half of the year
2006-07 and rest of the activity will partly start functioning from financial year 2007
onwards as shown below. A dummy diagrammatic representation actually presents the
exact roadmap for the entire project.
Typical Phasing of Construction and Marketing is as below
Fl _ X2005 FY 1 s = 2006 FY s 2007 FY 2008-2009

2006 t 2007 2008
E n~ '$a ,c, y E •y 'ice ~~~' _ "T 3, `~`~ .?. '~ ~,' ~~~x. „Ks
Construction
Marketing
and booking -
Revenue
Generation
Construction
Marketing
Revenue from Anchor and food court.
75
8.7 DISPOSAL MECHANISM:
The disposal mechanism should be followed separately for the different activities
proposed. The details of which are given below.
S. N Activity Disposal mechanise z /4
o f .{
1 Anchor The disposition will be on lease and this will be the first product
mix to dispose off as an anchor to the mall.
2 Mall - Retail Mall (retail) should be disposed off first and pre-selling mechanism
should be adopted which can run parallel to the construction. The
space would be all leased as per prevailing market rate as shown
in the last chapter for different product mix.
3 Club The preferred disposal option would be leasing it out at Rs 30 p sq
ft p month.
4 Commercial Commercial will be disposed off with the mall, may be it will take
more time to sell whole commercial space, as there is less
demand of commercial space in the neighborhood. The marketing
will start with the construction. The selling would be all leased as
per prevailing market rate as shown in the last chapter.
8.8 PROJECT ZONING:
Project zoning has been done for the mall considering the suitable zones on different
floors that an anchor and small and large retail tenant could probably occupy. The
proper zoning will also provide a concept to a mall at different floors with specific
76
usages. The Anchor tenant is positioned to leverage its novelty value for subleasing of
the entire property and for overall functioning of the Mall. Presented below are the
concepts that can be applied to the mall with minimum breakage.
77
CASE STUDIES
This chapter is a brief regarding the importance of site location for this very sensitive
retail industry.
• OVERVIEW OF MALLS AT HYDERABAD

• CASE STUDIES
CHAPTER 9
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i
CASE STUDY -2
Metropolitan Mall. -Gurgaon
LOCATION:
The shopping plaza is located near sector 28 of Gurgaon, and can be accessed
from the national highway No. 8.
DESIGN STRATEGIES:
Two design strategies were devised to achieve this desired complexity. One was
that creating a system of programmatic overlapping and intersecting. Second
was of designing a mall that is not just a stack of shops fitted out in a building but
more like an enclosed Indian street systems.
BASIC PLANNING
To avoid the monotony, metropolitan has been planned with cross programming
- of multiple functions.
■ - Cinemas
■ Restaurants
M Bowling
GROUND FLOOR PLAN
FIRST / SECOND FLOOR PLAN

THIRD FLOOR PLAN
a
revvv
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v
sue v `"'v~"
.,
~ S
_____~ 5!t
~~ i. / ». • k ar t F
w'"
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x~.__ __ ~j~x'
Rrj
FOURTH FLOOR PLAN

SIZES IN SQ.FT:
Total area(in Shopping Atrium Fun & Food Parking Services

lakh) Area Entertain-
ment
3.5 110000 30000 55000 75000 80000 UB 20000
60000 LB
DISTRIBUTION OF THE SPACES:
Levels Activity
Lower Basement Parking
Upper Basement Parking
Ground Floor Retail outlet, F&B, Kids station and anchor store
Firstfloor Retail Outlet and Restaurants
Retail Outlets, restaurants ad departmental store (yet
Second Floor to open)
Third Floor PVR and Food Court
VERTICAL CONNECTIVITY:

PARKING:

rkina detail ce for no. of Vehicles ntries on Weekends
Four Wheelers

0 Plus

Is.

Wheelers 50 to 800
SALIENT FEATURES
Atrium space is main focal point and the intension was to avoid an intimidating
and non-democratic space. Instead it has been seen as a protected and inviting
space providing potential of re-establishment of street culture. Metropolitan has
been designed with following features that shall counteract these factors.
Building automation systems that help regulate the lighting and the air
conditioning based on occupancy patterns through the day, season and the year.
SERVICES:
Air conditioning provides the advantage of making this space work round the
year. The Metropolitan alone is serviced by 1500 tones of air conditioning and
backed up by 4500 KVA diesel generating sets, in order to reduce the strain on
environment.
SECTION
MERITS:
■ Strong axis is maintained while placing of spaces and more liken
enclosure of Indian Streets.
■ Ample natural light come from three atrium spaces.
DEMERITS:
■ Possibility of over crowding at movie floor, due to not ample buffer space
at cinema lobby.
RECOMMENDATIONS & CONCLUSIONS
0 Recommendations
e Conclusion
CHAPTER 10
Recommendations & Conclusion
10.1 RECOMMENDATIONS:
Encourage Mixed Use:
• Encourage and support new and existing uses around the road front that continue
to make the area a focal point in the surrounding catchment.
• Encourage the development of high quality entertainment and retail uses that
attract customers from beyond the intermediate market areas, as well as
attracting local residents.
• Strong public entrances on the streets.
• Well defined and adequate parking and landscaped spaces.
New Formats:
• "Hybrid malls" are the hottest concept, which conjoin large enclosed malls with an
outdoor urban streetscape retail/entertainment component, with such attractions
as multiplex cinemas, ice rinks, children's play scapes and themed restaurants.
v Businesses that. once were peripheral to the mall and services are grouped
together. Not in the same mega-building, but often in open-air pedestrian
walkway leading to the mall entrances.
• Moving from "Green field to Grey fields": From failing shopping centers to Great
Neighbourhoods".
Reinventing Existing Malls:
• Reviving mall properties by "turning them inside out".
• Like tearing off the road and putting a street or open-air walkway where shoppers
once strolled indoors.
• The stores, then, enjoy a new public face.
• The development is exposed to foot and car traffic, rather than sitting
undiscovered deep in the interior of cloistered areas.
A retail space is no longer just a store - it is a stage .lt is an environment that tells a
story, creates an image, and set a mood
The Forecast:
• Even at the best of times, a few retailers will fail. During tough times, failure rate
of retailers will tend to rise.
• Fittest retailers survive and as these retailers consolidate their gains and expand,
they need additional floor space and often end up leasing stores formerly
occupied by losers.
• Winning retailers would gravitate towards dominant malls as the best locations
for their new stores.
• Owners of dominant malls will have least trouble °finding new credit worthy
replacement retailers.
• Non- dominant malls will bear the brunt of shrinking share of the market.
79
a As the weaker, second rate malls disappear, the survivors will be left with
healthier, vibrant malls.
10.2 CONCLUSION:
The malls in India need to have a clear positioning through the development of
differential product assortment and differential pricing, in order to compete effectively in
a growing mall market. Segmentation in malls
■ Like Up-Market Malls, Mid-Market Malls
• Proper Planning
■ -Correct Identification of Needs
■ Quality Products at lower prices
■ Right Store Mix &
■ Right Timing
would ensure the success of the `mall revolution' in India.
A feasibility study in an emerging market should follow a "Global to Local" model
wherein besides global factors, other issues like emerging markets, national, and local
market conditions should also be considered.
The malls in India need to have a clear positioning through the development of
differential product assortment and differential pricing, in order to compete effectively in
a growing mall market.

BIBLIOGRAPHY
• CII Report
• FICCI Report
• ICICI Retail Research
• ISCS — Images Retail Form
• Chesterton Meghraj
Websites:
• www.wikipedia.org
• www.retail india.com
• www.chestertonmeghraj.com
• www.google.com
• www.ises.com
Annexure 1
Household Survey Format

1. How frequently do you go out for
Movie 0 twice a wk El once a wk ❑ once a month 0

Shopping ❑ twice a wk ❑ once a wk El once a month 0
Eating ❑ twice a wk ❑ once a wk 0 once a month ❑
Leisure ❑ twice a wk ❑ once a wk ❑ once a month ❑
2. What are the preferred places of entertainment in the city for
Movie 1. 2. 3. 4.
Shopping 1. 2. 3. 4. _
Eating 1. 2. 3. 4.
Leisure 1. 2. 3. 4.
3. What is your household monthly expenditure for (in Rupees)
Movie 0<250 ❑ < 500 ❑ < 1000 0 < 1500 ❑ >1500

Shopping 0<250 ❑ <500 0<1000 ❑ <1500 ❑ >1500
Eating 0<250 ❑ <500 0<1000 ❑ <1500 ❑ >1500
Leisure 0<250 ❑ <500 0<1000 ❑ <1500 ❑ >1500
4. How much time you spend normally for each outing for
Movie ❑< 2 hrs ❑ 2-4 hrs ❑ 4-6 hrs ❑ > 6 hrs

Leisure ❑< 2 hrs ❑ 2-4 hrs [14-6 hrs ❑ > 6 hrs
Shopping ❑< 30 min 0 < 1 hrs 0 1-3 hrs ❑ > 3 hrs
Eating ❑< 30 min 0 < I hrs 0 1-3 hrs ❑ > 3 hrs
5. How much do you normally travel for
Movie ❑ 15 min ❑ 30 min ❑ 1 hr [I> 1 hr

Shopping ❑ 15 min ❑ 30 min LI 1 hr ❑ > 1 hr
Eating ❑ 15 min 0 30 min ❑ 1 hr ❑ > 1 hr
Leisure ❑ 15 min 0 30 min ❑ 1 hr ❑ > 1 hr
6. You normally prefer to go with
Movie ❑ Family 0 Friends 0 Self Group size

Shopping ❑ Family 0 Friends 0 Self Group size _
Eating ❑ Family 0 Friends ❑ Self Group size
Leisure 0 Family 0 Friends ❑ Self Group size
7. What is the mode of transportation you normally use for above trips
02 Wheeler ❑ 4 Wheeler 0 3 Wheeler I Taxi 0 Public transportation
8. Where would you prefer to shop (Shopping mall is a concept having at a single place with branded retail, eating
joints and other entertainment facilities, like bowling alley, etc.)
❑ Retail Market . 0 Shopping mall 0 Whole sale markets 0 Informal Bazaars

9. Where do you shop following — Specify Location
Apparels
White goods
Eating Out.
Leisure & Ent.
10.Would you prefer to go to mall cum multiplex (this is a concept having all under one roof with branded retail,
Eating joints and 2 — 3 screen cinema) or all separately.
❑ Mall cum Multiplex ❑ All separate
11. How much would you prefer to travel for such facility?

❑ 15 min 030 mm ❑ 1 hr D> 1 hr
12. What is the utmost criteria for leisure / entertainment / shopping (Give Ranking)
0 Pricing ❑ Convenience ❑ Ambience ❑ Location Others
Age group ❑< 25 yrs ❑ 25-34 yrs 0 35-50 yrs ❑>50 yrs
Sex ❑ Male ❑ Female
Mon. Income ❑ < Rs 10 K 0 10-20 K ❑ 20-40 K ❑ >40K
Profession ❑ Business ❑ Service ❑ Self employed ❑ Student El Housewife
Education ❑ 10 + 2 ❑ Graduate ❑ Post Grad ❑ Professional ❑ Others
An nexu re 2
Retailers Survey Format

Retailers Survey Format
1.Type of Store
- Apparel - Departmental Store - Food Chain - Book Store - Jewellery - Gifts & Toys
Any Other
2.How would you rate the future business scenario in retail in Thiruvananthapurame?
Excellent Good Average Poor
3.What is the footfall you are getting at your retail store?
Weekdays Weekends
4.What percentage is the conversion of average daily footfall? (How many purchase on each hundred footfall)
<10% >10% >15% >25%
5.Are you in process of opening new stores in Thiruvananthapuram?
Yes No -
6.What are most important criteria for a retail outlet for your chain? (Give Ranking 1, 2, 3, 4, 5 )
Location Accessibility Parking Footfall Lease Rent Business District
7.How do you rate Plamoodu Junction and Pattom Junction as a Mall Destination?
8.How do you rate Pattom and Plamoodu Junction Road as a destination for your business?
9.What will be expected rental pricing/ lease rent for retail space in Shopping Mall at Pattom and Plamoodu
Junction Road in Rs p sq ft?
< 15 15-25 25-35 35-45 45-55 > 55
10. Would you be interested to take space in a shopping mail at Cunningham Road?
Most Interested May take Consider- Not Interested Not interested at this point
How much is the minimum space requirement for store?

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FEASIBILITY REPORT FOR SHOPPING

MALL SPECIAL REFERENCE TO HYDERABAD

DEPARTMENT OF ARCHITECTURE AND PLANNING

Dated: 2,c' O4 (; vvw)

Dip. In Arch, C. P.E.T,Ahmedabad

Department of Architecture $ Planning

Prof R.K.Sahu (Former HoD,Architecture & Planning) ...............for guiding me and

Dr. Pushplata ..............................for her constructive criticism .

M.P.Avinas....... ..............you made my life easy with your ideas.

Kalyan ................your support at a very crucial stage of the thesis.

My parents...........for their understanding and faith on me.

............... Soumendra Patnaik

Shopping Center Industry".

without really understanding the viability of the project."

The thesis is an attempt to underscore the critical importance of Feasibility Analysis

The thesis emphasizes on improved decision-making through perfect understanding of

supported by supporting statistics at every juncture of decision making.

The thesis attempts to address to the basic questions as to

• Why is the feasibility study essential ?

• When should it be done ?

• How it should be done ?

The long-term viability of any retail development requires a comprehensive and

painstaking study of various influencers, including factoring in the effects of future

competition. With a well-researched, statistical analysis of project feasibility, developers

CHAPTER 2: HISTORY OF SHOPPING MALLS

2.1 HISTORY OF SHOPPING MALLS 9

CHAPTER 3 : SHOPPING MALLS - INDIAN SCENARIO

3.1 EVOLUTION OF THE MALL CONCEPT 11

CHAPTER 4: COMPOSITION OF A TYPICAL 'SHOPPING MALL

CHAPTER 6: COMPONENTS OF MARKET FEASIBILITY

CHAPTER 7: COMPONENTS FOR ARCHITECTURAL FEASIBILITY

7.1 FORMAT OF MALL 44

CHAPTER 8: COMPONENTS OF FINANCIAL FEASIBILITY

9.1 OVERVIEW OF MALLS AT HYDERABAD

CHAPTER 10: RECOMMENDATIONS & CONCLUSIONS

BUA Built up area

FAR Floor Area Ratio

_ FSI Floor Space Index

IRR Internal Rate of Return

NPV Net Present Value

Sq yds Square yards

SWOT Strengths, Weaknesses, Opportunities, Threats

Topics covered in this chapter are :

growth of the retail sector in the country.

The country is witnessing a period of boom in retail trade, mainly on account of a

households. A report by Merrill Lynch, an internationally reputed -research firm has

monitor International, a leading provider of global consumer-market intelligence places

India 6th on a global retail development index.

sector in India, both in terms of Turnover & Employment Generation.

become a national phenomenon. A McKinsey report on India says organized retailing

would help in achieving higher GDP growth.

roughly two per cent of the entire country's population.

organized retail to capture 15%-20% market share by 2010. According to KSA

000 crores by 2005, representing 6% of the total retail market.

1.2 SHOPPING MALLS - AN INVESTMENT OPTION:

in the mall segment, but are witnessing quick growth.

version can be anywhere between 80,000 sq.ft. And 500,000 sq.ft.

■ From 158 malls/shopping centres by end-2005, India to have 358 malls/shopping

million sq.ft in 2005 to 87.8 million sq.ft in 2007