2. Organization
Indian Real Estate Market
State of Indian Capital Markets
Undergraduate Recommendations
Description of Project
Graduate Recommendations
3. India Groups
In Country Support Groups
Graduate
Jeffery Benaron
Julia Kaplan
Steven Majich
Daniel Mills
Eric Anderson
Kelsee Cavasino
Matthew Gibbons
Neha Shah
Minh Trinh
Undergraduate
Dakota Semler
Bill White
Thomas Auer
Benjamin Heldman
Michael Joffe
Nicolas Nenmi
Edwin Wharton
4. Virar Relative to Mumbai
• 60 Km from Nariman
Point
• Southern Mumbai
• Central Mumbai
• Thane, Vasai, and Virar
• Rail Transport
• Delhi Mumbai Industrial
Corridor
60Km
5. Indian Real Estate Sector
• Zoning – Similar Zoning
Types
• Title – Recorded in Local
Jurisdiction then Regional
• Title Insurance
• Permits – Local Building
and Planning Offices
MCGM
• Bahujan Vikas Aaghadi
• Ownership Rights
6. Indian Capital Markets
• Illiquid Relative to U.S.
and European Markets
• High Capital Costs
• Lower Transparency for
Investors
• Low FDI
• Risk Free Rate 7-9%
• FEMA Regulations
• Special Economic Zones
7. Virar Growth
• Past Decade shows 221% Growth in Virar-Vasai Region
• Rapid development in residential projects
• Slow growth in industrial, office, and retail developments
• Transportation corridor growth
8. Virar Growth
• Past Decade shows 221% Growth in Virar-Vasai Region
• Rapid development in residential projects
• Slow growth in industrial, office, and retail developments
• Transportation corridor growth
9. Virar Growth
• Past Decade shows 221% Growth in Virar-Vasai Region
• Rapid development in residential projects
• Slow growth in industrial, office, and retail developments
• Transportation corridor growth
10. Virar Growth
• Past Decade shows 221% Growth in Virar-Vasai Region
• Rapid development in residential projects
• Slow growth in industrial, office, and retail developments
• Transportation corridor growth
11. Virar Growth
• Past Decade shows 221% Growth in Virar-Vasai Region
• Rapid development in residential projects
• Slow growth in industrial, office, and retail developments
• Transportation corridor growth
12. Project Site
• 400,000 Sq. Feet
• Located along Railway
• Between Nallasopara
and Vasai Rd. Stops
• 3 Anchor Tenants
• Parking for 400 Vehicles
and 300 Motorcycles
• Indoor Design
• 78 Small Retail Shops
13. Swastik Mall
• Shoppers Stop
• HyperMarket
• Indian Retails
• Local Retailers
• Customers primarily
from Virar-Vasai region
• Integra Mall
• Limited Competitors
15. Methods for Increasing Value
To create added value
for VIVA Group and
Investors by lowering
operating costs,
increasing chargeable
rents, and consequently
increase property value.
16. ISO 14000 and 14001
• Minimize impact on
environment
• Comply with local
regulations
• Continually improve
standards for
environmental
management
• Compensate for
Environmental Impact
of Processes
17. ISO 14000 and 14001 Benefits
Owner or Investor
• Reduced operating costs
• Higher rents and reduced
vacancy rates
• Attracting and keeping tenants
• Resale value
• Insurance
Tenants expectations
• Health and productivity
• Attracting and keeping
employees
• Reduced operating costs
• Environmental image
18. Sanitation
Reasons for Implementation
• Greater livability and
property values
Collection and Treatment:
• Case Studies: Los Angeles
and Milwaukee
Prevention:
• Green Infrastructure:
Greenways, Porous
Pavement and Rainwater
Catchments
19. Waste Disposal
Why?
• Efficient and environmentally
friendly waste disposal system
can add significant value and
aligns with goals of corporate
social responsibility.
Waste to Energy:
• Reinvesting waste products to
reduce energy expenses
Disposal Systems:
• Automated Waste Collection
(the ENVAC System)
20. Location Planning
• Brick and Mortar
Competition with E-
Commerce Stores
• India lacks distribution
infrastructure, coding
ability across regional
dialects, and branded
goods supply chain
• Competitive Analysis with
Retail in Southern Mumbai
• Catchment Analysis
21. LEED Building Standards
• Third-party market-driven
program by the U.S. Green
Building Council providing
verification for green
buildings
• 110-Point scale where
buildings must score at least
40 points in order to be
considered “LEED
Certified”
• 2 options of certification
programs for retail properties
• Commercial Interiors
• New Construction and Major
Renovations
23. Costs to Implement
Soft Costs
• Application fees,
Documenting,
Energy Modeling,
Commissioning,
and Design &
Engineering
• Additional
1.5%-3.1% in soft
costs
<50,000
Sq. Ft.
50,000-50
0,000 Sq.
Ft.
>500,000
Sq. Ft.
USGBC
Member
$2,250
$0.45 / Sq.
Ft.
$22,000
Non USBGC
Member
$2,270
$0.55 / Sq.
Ft.
$27,500
Expedited
Fee
$10,000 $10,000 $10,000
24. Attractions and Entertainment
• People come to the mall
for an event, service or
experience
• The mall becomes either
an activity or a
destination depending on
the attraction’s size
• People may not set out to
shop, but they likely will
• Selling Experiences
versus products
25. Benefits
Duration of Stay
• 4 hour average stay in
entertainment malls
versus 60-90 minute
average stay in pre-
entertainment mall
Increased Revenues
• 7-8% increase in sales
with the addition of a
Cineplex
• Increased Rent Revenue
People travel from further away
Increased foot traffic
• Higher base rent
26. Categories of Attractions
Destination
• Waterpark, amusement park, ice rink
or small zoo
• Local Tourism Destination and Day
trips
Events
• Mini-golf/athletic facilities, art studio
or Cineplex
• People will come for an afternoon
and are willing to travel
Service
• Haircuts, restaurants, or dry cleaning
• More frequent visits
27. In Mumbai
• Cineplex's are common in
malls in Mumbai
• Restaurants are also
common
• Hypermarkets are popular
anchor stores
• Services create marginal
revenue and marginal foot
traffic from local residents
• Focus on adding in
destination attractions to
bring people in from
surrounding areas as well as
tourists
28. Waterpark
• West Edmonton Mall
• Destination attractions have
made it a commercial
powerhouse
• Secondary Revenue Source
• Attract younger families
• Climate suitable for
waterparks
• Indoor to avoid monsoon
issues
• Potential competition: The
Great Escape
29. Amusement Park
• Mall of Asia in the
Philippines
• It is a tourist
attraction
• Growing in popularity
• Day trip activity
• Amusement park
industry growing 25%
annually
• Attracts families and
young people
• Potential Competition:
Yazoo Park
30. Grand IMAX
• L’Hemisferic in Valencia, Spain
• Designed by well regarded
architects
• Tourist attraction within Ciutat de
les Arts i les Ciències
• Between “Destination” and
“Event” category
• Popularity of Bollywood
• IMAX’s have been rapidly growing
in popularity in emerging markets
• Imax experiencing 20% growth
rate
• Sustained interested for a rising
middle class
• Potential competition: Many
other cineplex’s and a few
IMAX’s
