Mumbai: In view of rising material and land prices in India, Future Group, a leading retail-to-financial services provider is mulling an innovative and unique mall development model that will help both retailer and developer boost bottomline growth, a top official of the group said.
The group has already worked out a format and will start developing malls over the next 3-4 months, the official said.
“We are working on a model that is economically viable and at the same time is retailer-friendly. We will have something concrete on this in the next 3-4 months. We are in talks with 2-3 developers for malls in 3-4 cities,” Future Group director Sunil Biyani told PTI on the sidelines of the India Shopping Centre Forum in Mumbai.
Biyani, however, refused to divulge the financial details and names of the developers.
“Mall is a long-term project and hence, we should have a model that reaps benefits for a longer period. The malls should be cost-effective, safe and at the same time, should have the look of a high-street mall. Our aim is to reduce operational costs and make it profitable,” Biyani said, adding that the Future Group would provide expertise and innovative ideas in the model.
Biyani said that some of the innovative measures that the upcoming malls will have would be the use of natural and green building materials, energy efficiency and a 100% lease model.
“Right now, we are in the conceptualization phase and will be testing the concept in the next 3-4 months in three cities such as Mumbai, Hyderabad and Kolkata. The size of the malls will range between 2,50,000-4,00,000 square feet,” he said.
The format, Biyani claims, will benefit all involved parties -- land owners, mall owners, developers and retailers.
One of the features of this format is that the land owner or the mall owner would get back his land after 10 years to further innovate, renovate or redevelop.