Gopalan Enterprises, a Bengaluru-based company, wants to restructure its mall portfolio in order to reach revenue of Rs 5,000 crore by FY20

Gopalan Enterprises, a Bengaluru-based company, wants to restructure its mall portfolio in order to reach revenue of Rs 5,000 crore by FY20

According to the firm, after the latest regulation amendments, it is on pace to de-notify 0.5 million square feet of SEZ premises in Bengaluru.

The company's plans to build a new IT park at Mahadevapura, close to the IT-ITES corridor, Bengaluru, are proceeding as planned.

Gopalan Enterprises, a real estate developer located in Bengaluru, has a new business strategy. As part of this, it will stop developing its portfolio of malls into only shopping centers and instead turn them—including the five malls it runs in its hometown—into mixed-use retail complexes with office space.

"The concept of mall-with-office space has already evolved in markets include Dubai and Singapore," said C. Gopalan, managing director. We have kept the retail spaces on the first two levels due to their excellent rental returns, while the top floors will contain managed workplaces. informed Moneycontrol.

With a projected turnover of Rs 5,000 crore by FY2025, the business intends to build 5 million square feet (MSF) of commercial and residential space in Bengaluru as well as Mysore.

The business said that while it does not intend to build any additional destination malls, it is considering building a 4 lakh square foot mixed-use retail property in Bengaluru. By the end of the year, Whitefield and Rajarajeshwari Nagar will see the forthcoming improvements.

removing notice of SEZ sites

Within SEZ parks with IT-enabled services, the government this year issued a notice permitting floor-by-floor de-notification of SEZ or Special Economic Zone sites in non-SEZ usage. Developers will have greater space to grow as a result.

Gopalan Enterprises now operates four MSF SEZs in Mysuru and Bengaluru. According to Gopalan, the business is on schedule to de-notify 0.5 MSF SEZ areas in Bengaluru after the most recent revision.

"We are receiving more queries now that the SEZ regulations have changed, and many of them are concentrating on local market consumption. In the past, offshore enterprises engaged in export-oriented operations were assigned to SEZ areas. But now that there has been some de-notification, "Players from the local market have started stepping in," Prashna Gopalan added.

Ten percent of Gopalan Enterprises' SEZ premises are now unoccupied.

Tier II cities are recovering due to increased business demand.

According to Gopalan, the business intends to accelerate its 2024 commercial and residential portfolio even further. The business built a 1.5 million square foot office complex in Bengaluru last year.

The business intends to add one MSF IT park to each of Bengaluru and Mysuru by the end of 2024.

In reference to Mysuru, Gopalan said that there has been a resurgence in the market for commercial real estate in tier II cities, particularly with the increasing cost of tier I cities.

"Mysuru's reasonably priced real estate and cost of living are already comparable to Bengaluru's.has changed to take the shape of wire. There is a lot of support, he added, for the fast growth of low-end services like contact centers in Mysuru, which would increase demand for real estate.

The company's plans to build a new IT park at Mahadevapura, close to the IT-ITES corridor, Bengaluru, are proceeding as planned.

According to Gopalan, the business left the co-working space market the previous year. "Our goal is to establish more managed workplaces in Bengaluru. By the end of 2024, we will have an additional five lakh square feet added to the city's current five lakh sq ft," he said.

In contrast to co-working facilities, which rent or lease space on a per-seat basis, a fully furnished space is leased to a business under the managed office model, with the lessee bearing maintenance costs. belongs to.

growing area occupied by homes

Gopalan Enterprises has built almost 20 million square feet of apartments in Bengaluru so far, and by the end of 2024, it intends to build 1,000 additional units with a 1.5 million square foot capacity. These projects will be located in Rajarajeshwari Nagar, Electronic City, and Whitefield. flat tickets will start at Rs 1 crore for a 2BHK flat and Rs 1.5 crore for a 3BHK home.