Bhopal Development Authority

Development of Integrated Mixed Use Commercial Complex at Galla Mandi

Investors’ Meet

10th August 2011

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.

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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

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Corporate

Advisory,

Markets

Meghraj Capital Advisors Private Limited (MCA)

Prominent Investment banking and consulting firm with excellent track

record and corporate relationships.

Finance, Advisory and execution services in Infrastructure

Mergers & Acquisitions, Funds Syndication and Capital

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.

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About the Project Site

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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

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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

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Connectivity through Pul Bogda Road

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Picture of the project site-1

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Picture of the project site-2

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Picture of the project site-3

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Picture of the project site-4

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Observations based on the market survey

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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

Observations based on retail infrastructure

• Background

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managed

required.

General

to convert footfalls to the extent

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.

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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

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.

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Forum Value Mall, Bangalore

Developer Prestige Group

Location Whitefield

Built-up area 0.473 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)

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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.

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Ansal Plaza, Ghaziabad

Developer Ansal Housing

Location Vaishali, Ghaziabad

Built-up area 2 Million sq ft

Major Attraction ADLABS 3 screen multiplex, Hyper market

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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 8000-10000 a day

• Many residential areas in the vicinity offer the perfect catchment area.

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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

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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

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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 well-

heeled.

– 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

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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

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. 2850 – Rs. 4000

• Value for money hotel

• Some features:

– Central air conditioning

– Business centre

– Banquet meeting centre

– Multi-cuisine coffee shop

– Recreation bar

– Fitness centre

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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. 2099 – Rs. 3999

• 101 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

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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 500-1500 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

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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

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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

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Convention centre

• Background

Large, cavernous public

space

buildings with open –

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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

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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

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Name of Planning/ Building Authority’s jurisdiction in

which site is present

Is there need for land use conversion?

Width of approach/ internal road:

Road widening proposals from Road authorities for

the roads connecting the site (80’, 90’ 30’ & 40’

wide road)

Type and nature of neighboring development

Is there any building line setback regulation from

centre of the existing adjoining main roads

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S. No:

(I)

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BDA

No

150 feet wide road

Yes

Residential - LIG

No

Applicable regulations to the design parameters

Planning Regulations Remarks

Existing land use of site as per Development Plan Commercial

Applicable regulations to the design parameters

S. No: Planning Regulations Remarks

What are the Planning/Environmental/Building Authorities MP electricity Board

relevant to site based on location and proposed residential PCB

development BDA

(Electricity Board, Water Supply Board, Pollution AAI

Control Board etc)

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Any HT lines running through the site

Any water body within the site

Proximity to airport

Nature of services existing to and from the site for

Water

Sewerage

Electricity

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No

No

7 Kms

Available

Applicable regulations to the design parameters

Building Regulations/ Bye-laws Remarks

Types of development planned in the proposed

development

S. No.

(II)

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Mixed use development Commercial Office blocks

Residential blocks

Others (Specify)

Permissible FSI for each building type 1.75

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%

Parking regulations as per local bye-laws/ Market 40% of TBUA (Retail)

requirement

MSL of site & airport

(To be obtained from Survey of India)

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25% for others.

To be obtained

Concept Suggested

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4 star and service apartment

(Hospitality infrastructure) enables

optimal use of FSI

Hospital will be an additional

integrated part of this development.

Designed to harness the complete

potential of the site

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Commercial

Value Retail

Hospital

Value retail to be at the core of the

development

Bhopal Town Centre Concept

• Features

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Commercial

retail

will compliment value

Serviced Apartment

4 Star Hotel

Bhopal Town Centre Concept (Contd)

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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

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Area Available

(Permissible built up area)

Approx. project cost

Total time for construction

Bhopal Town Centre Concept (Contd)

7.6 lakh sq. ft.

Rs. 190 Crores

Upto 3 years for various components

Built up area

(Lakh sq ft)

4.0

0.8

1.0

1.2

Components

Retail

Hotel

Commercial

Hospital

Guesthouses/

Serviced

apartments

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% coverage

34.8%

14.0%

12.3%

7.6%

0.6 9.9%

Proposed PPP structure

PPP Structure Design-Build-Finance-Operate-Transfer

(DBFOT)

Basis of land availability Leasehold

Tenure of the concession 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

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BDA requests your thoughts and suggestions and looks

forward to your enthusiastic participation

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THANK YOU

Contact:

Mr V.P.Malviya

cap@bda.org.in, info@bda.org.in

(M) +91 94250 19630 (O) +91 755 2701837

Mr. Prakash Iyer

prakash@meghrajindia.com

(M) +91 99677 14385 (O) +91 22 6744 5129

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