In an interview with CNBC-TV18, Shishir Shrivastava, ED, Phoenix Mills said that the Phoenix Market City Pune shall be operational in the next month and a half. The company is targeting for an end April, early May opening.
The Kurla and Bangalore malls will possibly be operational in a month and month thereafter. By September of this year, the company certainly sees all three Phoenix Market City operational. "We see each of these malls having the potential of achieving gross operating revenue in the region of about Rs 150-180 crore per annum," he added. Below is the verbatim transcript of Shrivastava's interview with Gautam Broker and Latha Venkatesh of CNBC-TV18. Also watch the accompanying video. Q: Can you tell us about the Market City mall which is going to be operational soon and how will that add to the topline going forward? A: Phoenix Market City at Pune, Kurla and Bangalore are almost at a stage of completion. The Pune mall would be possibly one of the most spectacular malls in the country today. We see each of these malls having the potential of achieving gross operating revenue in the region of about Rs 150-180 crore per annum. Q: Is this going to be in a staggered manner because in Q3 it was about 45 crore so annually you seem to be doing 200 crore, in what timeframe can you add 150 crore in what timeframe? A: We see Phoenix Market City Pune operational in the next month and a half, we are targeting for an end April, early May opening and Kurla and Bangalore possibly a month and month thereafter. So, by September of this year, we will certainly see all three Phoenix Market City operational. Q: High Street Phoenix is coming up for renegotiation of rents, what do you expect to make? Are rents stagnant or are you expecting to make more money? A: There are three large spaces, which have been up for renewal and discussions have been on and the contribution from these anchor spaces, which are old contracts is not very high, it is not at markets levels today. We see a significant increase from about 150,000 sq ft currently contributes about Rs 65 per sq ft and we see that moving up about Rs 120-140. Q: You are expecting it to go from Rs 105 to Rs 120? A: From Rs 65 per sq ft to close to about Rs 120 per sq ft. Q: There has been a lot of mall competition though in this area in High Street Phoenix, this is rather a stiff increase, you think it will materialize? A: We are confident and I am not too certain about the competition in that area in fact the last I checked there wasnDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
