Renewed leases of floor space at Phoenix Mills currently stand at 250-265 sq ft. Speaking to CNBC-TV18 in an exclusive, Shishir Shrivastava, Executive director of Phoenix Mills says that income from operations is expected around Rs 200 crore in FY12.
Even though inflation is seen rising, consumer spending in India remains unaffected. This is evident from the success rate at which Phoenix Mills operates. The management expects income from operations to be around Rs 200 crore in FY12.
Speaking to CNBC-TV18 in an exclusive, Shishir Shrivastava, Executive director, Phoenix Mills says that the company will now focus on delivering phase II of all projects. "The income from operations is likely to go up by 35% in FY13 with new projects being launched," he reveals.
He says that High Street Phoenix property is a major driver of revenue and significant amount leases have already been renewed or renegotiated for this fiscal. The rates for the renewed leases at Phoenix Mills currently stand at Rs 250-265 per sq ft, he informed.
Below is the verbatim transcript. Also watch the accompanying video
Q: You have just opened a mall in Pune, can you take us through how much of space have you leased out and what kind of rates have you got for that and what has been the initial response to the mall in terms of footfalls, how has that been?
A: We have launched Phoenix Market City at Pune on June 28 and at the time of the launch, this mall was preleased to the extent of about 85%. We have achieved a weighted average minimum license fee of close to about Rs 65 plus and we have an upside in terms of the revenue share. At the moment, it is a soft launch and we expect in about a month or so, we will start with our big bang marketing activities to drive further footfalls.
Q: How much of it have you leased and what can you factor in by way of revenues in FY12?
A: Yes, it is about 13 lakh sq ft mall and we have leased about 85%, so that takes the number a little over 10 lakh sq ft.
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Q: What is the progress on the Kurla Mall, are you hopeful that this year you will be able to open that and operate that?
A: Absolutely, I am sitting here in one of the largest atriums at the Kurla site, been here, spending my time here, and the mall is almost ready. We are working with our retailers to help them move in and complete the fit-outs quickly. So I am absolutely confident that in the current quarter, we should be able to launch this mall.
Q: What about renegotiation at High Street Phoenix in Mumbai, is most of it over and done with?
A: Some of it has been done and we have seen a significant move upwards, but in terms of the total area, that has been renegotiated or rather renewed or new leases entered into; it is not that high so far. The number is quite encouraging, we have renewed leases at close to Rs 250 to Rs 265 a sq ft.
Q: Many of it coming up in FY12 itself?
A: Yes, there is close to about another lakh sq ft that is going to be up in this year itself.
Q: You are getting that Big Bazaar space as well, aren