The Hindu Business Line : Sigma to set up Rs 120-cr shopping mall in Bangalore

The Sigma Group Managing Director, Mr H.S. Bedi, told Business Line that the shopping mall would be built on the Outer Ring Road. It will also have four multiplexes, a furniture mart and food courts. The mall is expected to come up sometime next year.

Sigma, along with e-city Entertainment, is already setting up a multiplex theatre and a shopping mall on Cunningham Road in the central business district. The cost of the project is around Rs 60 crore and is expected to come up this year.

According to Jones Lang LaSalle, real estate consultants, around 1.5 million sq ft of ready-to-move space would be available in Bangalore by the beginning of 2005. In addition, there will be immense opportunities for campus-style built-to-suit development in the suburban areas. The consultants said in a report that prices would be stable because of regularly expanding supply with most of the growth expected to be in the south-east quadrant of the city comprising the Airport Road, Outer Ring Road, Sarjapur Road and Whitefield. The report said that currently infotech firms, which are looking for space over one lakh sq ft, prefer the Outer Ring Road and at the Whitefield instead of Electronic city.

The report said the developers are offering an increasing flexibility in lease terms and upfront capital costs because of the supply pressure and demand slowdown. This has lead to lower effective costs compared with peak prices witnessed two years ago. "Large future supply allows a greater negotiating platform if a pre-commitment is provided for the development," the report said.

Jones Lang LaSalle said the high and stable demand levels could result in strengthening of the rents, especially in prime areas.

The report says that the lease rentals are at a level of Rs 28 per sq ft per month to Rs 33 per sq ft per month with security deposit of six months to 12 months. The price escalation is around 20 per cent for every three years.

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