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Bindu D. Menon

New Delhi, Dec. 5 Mall developer Entertainment World Developers (EWDPL) has said its capex is on track despite the slowdown in the financial market.

It is also aggressively scouting for distress sales in times of slowdown.

The company expects to spend Rs 2,000 crore by 2012.

“The slump in the market is the best time to look for distress sales. We are looking at companies that are cash-strapped and are unable to finish the projects on time,” Mr Manish Kalani, Managing Director, EWDPL India, told Business Line.

Asked how the company would fund its expansion, he said EWPDL has a strategic alliance with Phoenix Mills Ltd, which has acquired over 42 per cent stake in it for nearly Rs 1,300 crore.

The company also recently raised Rs 1,300 crore from a German real estate fund, MPC Synergy, by selling equity in the range of 10 to 49 per cent in 21 projects.

This apart, EWDPL has private equity infusion of Rs 80 crore from Nettleton Real Estate, an American realty and mall management company. Its other projects include a 50:50 venture with the Future Group in Indore.

Speaking about its retail expansions, Mr Kalani claimed the company has 17 ongoing projects in cities such as Vadodara, Bhubaneshwar, Visakhapatnam, Bilaspur, Ujjain, Jabalpur, Nanded, Chandigarh and Udaipur.

“We have an objective of having retail malls in every city in India over the next few years, initially focusing on the top 100 cities. Our strategy is to get into revenue share agreement,” he said.

EWDPL is a tier II city-centric retail mall-mixed-use developer, currently engaged in the construction and operation of mixed-use retail centres and townships.

The company hopes to develop 50 million sq. ft. of real estate development. Of this, 35 million sq. ft. will be in retail while the rest would be divided between hospitality, residential and commercial projects.

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