Bhopal Development Authority. Development of Integrated Mixed Use Commercial Complex at Galla Mandi. Investors Meet.

Transcription

1 Bhopal Development Authority Development of Integrated Mixed Use Commercial Complex at Galla Mandi Investors Meet 10 th August 2011

2 Bhopal Development Authority (BDA) About BDA Apex body for planning and coordination of development activities focused on housing, transport, water supply and environment Catalyses urban development through Conceiving, Promoting and monitoring key projects for developing new growth centres Leading to improvements in sectors like transport, housing, water supply and environment in the region Has successfully completed several projects such as: Rishi Nagar Scheme Char Imli Houses and shops in Shahpura Construction of residential cum commercial complex in Panchasheel Nagar Kushabhau Thakre Inter State Bus Terminus. The Galla Mandi project is BDA s latest such initiative. 2

3 Meghraj Capital Advisors Private Limited (MCA) Prominent Investment banking and consulting firm with excellent track record and corporate relationships. Corporate Advisory, Markets Finance, Advisory and execution services in Infrastructure Mergers & Acquisitions, Funds Syndication and Capital End to end financial as well as business advisory services to government as well as private sector clients Experts with extensive experience in the Urban Infrastructure sector who : Have advised on numerous PPP projects across urban development sectors Have worked extensively in sectors such as commercial, recreational, sports, IT, education and other infrastructure. Transaction advisors to BDA for this project

4 Bhopal-Recent trends Significant government presence given that it is the state capital. Regional Head offices of many private and public sector banks and financial institutions are based in the city Entry of private/service sector companies across sectors such as banking, financial services, telecom, etc. Importance as an Education hub today with more than 100 colleges and higher learning institutes located in the city (It has an NIT & an NLU as well) The city striving to balance tradition and innovation in its developmental initiatives. Rapid growth in the real estate sector in the last five-seven years. Mega projects such as the Delhi Mumbai Industrial Corridor (DMIC) project are expected to catalyze developments in Madhya Pradesh with related effect on Bhopal. Impetus being given to infrastructure development at the city level through schemes such as the JNNURM. 4

5 About the Project Site 5

6 About the site Area 10 acres (approx) Location In the heart of the city Near Jahangirabad and Bhopal railway station Equidistant from major areas Unique Features Large land parcel Rectangle i.e regular in shape Virtually equidistant from MP Nagar, Bittan Market and the Old City (4 kms from MP Nagar and 6 kms from Bittan Market) Connectivity Existing: Connectivity through 150 wide Pul Bogda Road (NH-12) Future Connectivity: Chiklod Road is to the rear of the site and hence possibility of connectivity can be explored 6

7 Position of the Site in the overall context of the city Bhopal Airport Bhopal Railway Station Lower Lake Jahangirabad Area The figure above shows the location of the site (shown by balloon A) in the overall context of the city 7

8 Connectivity through Pul Bogda Road 8

9 Picture of the project site-1 9

10 Picture of the project site-2 10

11 Picture of the project site-3 11

12 Picture of the project site-4 12

13 Observations based on the market survey 13

14 Observations based on retail infrastructure Background The unorganized sector dominates as yet (small retail stores across various markets) Over the last decade, departmental stores and commercial complexes have done well. Malls are a recent development with DB City operational and others such as Aashima Lakeside to be opened shortly. These are high end malls. High end malls while a major attraction have not managed to convert footfalls to the extent required. General customer perception is that malls are expensive. The customer in Bhopal is also value conscious. There thus appears significant opportunity for value retail and discount stores. 14

15 Observations based on retail infrastructure (Contd) Structure of Value Retail Unbeatable Value Proposition Discounts/sales throughout the year Factory outlets of brands Unmatched variety covering international, national and local outlets. Hypermarket and value cinema generally increases footfalls Lower lease rentals lower break even levels given higher conversion Key Drivers for Value Retail Huge unorganized market/small retail Bhopal a major urban centre for the surrounding region Consumers looking for a Value for Money proposition People settling down in Bhopal for education and job purposes Outsiders coming in with consequent effect on the spending pattern Retail Infrastructure - An appropriate concept for the value conscious Bhopal consumer

16 Observations based on retail infrastructure (Contd) Suitability of the project site Well located site equidistant from major city areas Availability of adequate land A value mall could help attract consumers there and act as a catalyst for other developments in the mixed use complex. 16

17 Forum Value Mall, Bangalore Developer Location Prestige Group Whitefield Built-up area Million sq ft GLA (Gross leasable Area) 0.3 Million sq ft Anchor Tenants 5 Screen 800 Seat Fame Multiplex Transit Food Court (Toscano, Firangi Paani, Angeethi, KFC, McDonald and MTR) 17

18 Forum Value Mall, Bangalore Large number of brands at discount prices throughout the year. Major Attractions: Mega Mart, Supermarket, Restaurants and 5 screen multiplex Mix of Local, national and international brands (E.g. Neeru s, Sanskruti silks, Loot mart, Namdhari s fresh, etc) Huge parking space/economical parking charges The Business model and infrastructure developed enable them to keep the fixed cost low These lead to lower lease rentals and hence discounted prices. 18

19 Ansal Plaza, Ghaziabad Developer Ansal Housing Location Built-up area Major Attraction Vaishali, Ghaziabad 2 Million sq ft ADLABS 3 screen multiplex, Hyper market 19

20 Ansal Plaza, Ghaziabad Situated on the Delhi-Ghaziabad border Offers discounts on all international and national brands available year round Attracts not only youngsters and working class group but homemakers since it offers groceries and other essentials too. Footfalls of around a day Many residential areas in the vicinity offer the perfect catchment area. 20

21 Observations based on residential infrastructure Background Traditionally independent houses Concept of apartments gaining ground Development of residential infrastructure constrained by geographical and manmade barriers Congested old residential colonies in the main city Housing in premium areas is very expensive Demand therefore for affordable housing Demand for rented houses from people travelling for educational and business purposes 21

22 Observations based on residential infrastructure (Contd) Key Drivers Good quality of life Aspirational demand Large government presence Vibrant education sector Suitability Newer developments are happening away from the city Prime location of the site and connectivity will be major attractions Considerable scope therefore for an integrated development including residential at the project site Considerable demand for housing/affordable housing 22

23 Observations based on healthcare infrastructure Background Large government hospitals in the city (Bhopal Memorial Hospital, People s Hospital, Jawahar Lal Nehru Cancer Hospital, etc.) Four large multi-specialty hospitals i.e. Chirayu, Hajela, Akshay and National hospital AIIMS (Delhi) is setting up a regional facility Mumbai/Delhi preferred healthcare destinations for the wellheeled. A majority of hospitals have been set up by one/more doctors and offer one/several specialties. Latent demand for quality healthcare & hence scope for corporates hospitals 23

24 Observations based on hotel infrastructure Variety of hotels to cater to all budgets. Hotels predominantly depend upon corporate clientele Significant business travellers given that the city is the state capital and home to numerous government and private sector entities. Several hotels have expansion plans in view of the potential. High occupancy levels in case of mid-case hotels. Tourist attractions in and around Bhopal. Given the demand and FSI available, hotels could be a good option. Proximity to the railway station from Galla Mandi, a key value proposition for hotel 24

25 Lemon Tree Hotel Hotels opened at Ahmedabad, Aurangabad, Indore, Ghaziabad other then metro cities In Indore: Located at 8 kms from airport 100 rooms each with a flat-screen color TV with multi-channel cable, full-sized work desk, high-speed WiFi net access The fare is Rs Rs Value for money hotel Some features: Central air conditioning Business centre Banquet meeting centre Multi-cuisine coffee shop Recreation bar Fitness centre 25

26 Ginger Hotel, Bhubaneshwar Hotels at Ahmedabad, Bhubaneshwar, Indore, Nashik, Surat, Vadodara other than major cities In Bhubaneshwar: Concept of best-budget hotel at bhubaneshwar Fare ranges in Rs Rs self sufficient rooms Services in the room such as Mini-fridge, LCD TV, Self-controlled A/c, Tea and Coffee maker & Telephone Corporate services offered such as Wi-fi, Meeting Room, Gymnasium 26

27 Observations based on commercial infrastructure Background Commercial infrastructure typically comprises small offices/establishments in commercial complexes These are often not very well maintained. Demand is driven by a host of end users such as traders, doctors, developers, property brokers, coaching classes, English speaking classes, computer classes, CA firms, etc. Individual shops/offices typically range between square feet. Key Drivers Quality commercial supported by adequate facilities management has not yet picked up and presents a tremendous opportunity. Demand for quality commercial from corporates setting up base in the city. Demand for well maintained commercial infrastructure 27

28 Guest House/Serviced Apartment Background Furnished apartment available for short-term or long-term stays Provides amenities for daily use Less expensive than equivalent hotel rooms Increase in business travel for short and medium term will create interest (economical compared to staying in a hotel) Offer more space and privacy, convenience and cost savings Trends Service apartment is already available in cities such as Ahmedabad, Pune, Gurgaon, Chandigarh, Jaipur other than metro cities and the segment is now gaining momentum in tier 2 and 3 cities as well 28

29 Convention centre Background Large, cavernous public space buildings with open Hosts public and private business and social events for the surrounding municipal and metropolitan areas The Floor area is enough to accommodate several thousand attendees Convention centers rent space for meetings such as: corporate conferences, industry trade shows, entertainment spectacles and concerts, large scale social events such as big ticket weddings/reunions, etc. Currently Bhopal does not have a convention centre. MPSTDC has recently announced an international standard convention centre to be developed in Bhopal at a cost of Rs. 40 Crore on 4 acres land 29

30 Convention centre (Contd) Key Drivers Bhopal is the state capital and does not yet have a large scale convention centre Numerous events being conducted here Demand and utilization levels for banquet halls/marriage halls are decent which could be a complimentary use of the facility Suitability Site is centrally located The Convention centre can itself be expected to act as catalyst for other related developments that could come up at the project site 30

31 Feasible uses of the site based on the market survey In view of the size of the plot and FSI available, a mixed use development may be optimal Market survey indicates feasible components could include: Value Retail Residential Commercial Hotels/Hospitality Healthcare/Hospital Guesthouses/service apartments 31

32 Applicable regulations to the design parameters S. No: (I) 1 Planning Regulations Existing land use of site as per Development Plan Remarks Commercial 2 Name of Planning/ Building Authority s jurisdiction in which site is present BDA 3 4 Is there need for land use conversion? Width of approach/ internal road: No 150 feet wide road 5 Road widening proposals from Road authorities for the roads connecting the site (80, & 40 wide road) Yes 6 Type and nature of neighboring development Residential - LIG 7 Is there any building line setback regulation from centre of the existing adjoining main roads No 32

33 Applicable regulations to the design parameters S. No: Planning Regulations Remarks 8 What are the Planning/Environmental/Building Authorities relevant to site based on location and proposed residential development (Electricity Board, Water Supply Board, Pollution Control Board etc) MP electricity Board PCB BDA AAI 9 Any HT lines running through the site No Any water body within the site Proximity to airport No 7 Kms 12 Nature of services existing to and from the site for Water Sewerage Electricity Available 33

34 Applicable regulations to the design parameters S. No. (II) Building Regulations/ Bye-laws Remarks Types of development planned in the proposed development 1 Commercial Office blocks Mixed use development Residential blocks Others (Specify) 2 Permissible FSI for each building type Permissible building height based on adjoining road widths for high rise apartments: Plot coverage applicable Percentage of land parcel to be allocated for Open Spaces/ Civic Amenities? Limit as per AAI 50% 10% 6 Parking regulations as per local bye-laws/ Market 40% of TBUA (Retail) requirement 25% for others. 7 MSL of site & airport (To be obtained from Survey of India) To be obtained 34

35 Concept Suggested 35

36 Bhopal Town Centre Concept Features Value retail to be at the core of the Commercial development Commercial will compliment value retail 4 star and service apartment Serviced Apartment Value Retail 4 Star Hotel (Hospitality infrastructure) enables optimal use of FSI Hospital will be an additional integrated part of this development. Hospital Designed to harness the complete potential of the site 36

37 Bhopal Town Centre Concept (Contd) 37

38 Bhopal Town Centre Concept (Contd) Access and Connectivity Access is provided through a main spine road from the highway The access can be a well-designed 14mts wide road and landscaping The value retail and the star hotel are placed at the entrance to provide frontage The retail close to the main spine facilitates an easy flow of traffic to the center 38

39 Bhopal Town Centre Concept (Contd) Area Available (Permissible built up area) Approx. project cost 7.6 lakh sq. ft. Rs. 190 Crores Total time for construction Upto 3 years for various components Components Retail Hotel Commercial Hospital Guesthouses/ Serviced apartments Built up area (Lakh sq ft) % coverage 34.8% 14.0% 12.3% 7.6% % 39

40 Proposed PPP structure PPP Structure Basis of land availability Tenure of the concession Design-Build-Finance-Operate-Transfer (DBFOT) Leasehold 20 years Option to extend concession period At the end of 20 years for another 20 years at mutually agreed terms. Bidding parameter Upfront development premium 40

41 BDA requests your thoughts and suggestions and looks forward to your enthusiastic participation 41

42 THANK YOU Contact: Mr V.P.Malviya (M) (O) Mr. Prakash Iyer (M) (O)