Category — Real Estate

Walmart Ups the Ante in India

 Arkansas-headquartered Walmart is planning a threefold increase in the pace of opening stores by 2020 in India. It plans to open 50 new stores by 2022 to take the total store count to 70.

“We are opening five to seven stores next year. Eventually, we want to open 15 a year, which should happen from 2020,” president and chief executive Krish Iyer said. The firm spends around $12 million per store for an average size of 55,000 square feet, and it has signed up for 19 sites so far.  Iyer added that Walmart considered India as a priority market in terms of providing resources to build capacities, back-end infrastructure, and implementing technology.

Walmart inaugurated one of its first global fulfilment centers or ‘dark store’ in India, in an effort to speed up operations in the country. The 45,000 square feet center at Bhiwandi near Mumbai will cater to the business needs of resellers, mom-and-pop grocery stores, offices and institutions through online orders mostly stock packaged consumer products and home supplies.

Walmart best price store in India

Walmart’s  Best Price store in India

 

November 2, 2017   No Comments

WeWork Expands to India

Miguel McKelvey, co-founder and chief creative officer of the $20 billion New York-based collaborative workspace startup WeWork, discussed his business in India with Forbes’ India staff Anshul Dhamija.

McKelvey said that in India WeWork had entered into a partnership with the Embassy Group. They launched operations in the beginning of this year and had close to 350,000 square feet of shared workspaces in Bangalore and Mumbai. “India’s probably the biggest market for us,” says McKelvey.

The concept of sharing a workspace with diverse set of professionals and enterprises is new in India and is catching on. WeWork gives access to discounted health care services, payment processing for their companies, IT support, education and training, to all its members.

When asked to comment on what opportunities India offers, McKelvey said: When we first came here, or thought about coming here, it certainly felt a bit overwhelming because it’s such a huge place and the culture is so diverse, varying from city to city and state to state. So having a partner is essential in understanding the local culture and also gives us credibility in the market. India’s probably the biggest market for us. While we are super excited to be in Japan, Australia and Europe, we are talking about hundreds of millions of people here in India. I think this is a place that, in the upcoming years, will play a major part in the way the world economy develops. For us to be here now is an incredible opportunity.

Inside an Office

October 29, 2017   No Comments

India Sees Record Private Investment in Q3 2017

A report by Ernst & Young says that private equity/venture capital investments in India touched a record high of $8.7 billion in the  July-September quarter, a sharp increase over last year’s $3.1 billion for the same period.

E-commerce recorded $2.6 billion across 18 deals primarily driven by Softbank‘s $2.5 billion investment in Flipkart. Real estate recorded $2.3 billion across 13 deals, and financial services announced deals worth $1.4 billion across 25 transactions for the quarter, reports the Times of India.

India is clearly maturing as a private equity market with bigger and complex deals becoming more common. Greater numbers of large deals and buyouts support this thesis and it is clearly visible in the third quarter 2017 investment numbers,” Vivek Soni, partner and leader for PE Advisory, EY said.

Magazine with Investment Report written on itThe quarter also saw record exits for PE players. Exits recorded a year-on-year rise of 128 percent in value terms at $4.7 billion across 65 deals, driven by exits via IPOs, open market, and secondary sale, noted the report.

October 10, 2017   No Comments

Multinationals Bullish on Warehousing in India

Due to growth in both the consumer sector and e-commerce in India, overseas investors and real estate players are increasingly investing in warehousing and logistics.

Key players such as Singapore’s Ascendas-Singbridge, Assetz Property Group, Ohio-based Logos Realty, Canada Pension Plan Investment Board and the Everstone Group, among others, have made major investments in this segment.

Some quotes from senior management:

“We are seeing extensive demand from our existing and new customers for institutional grade logistics facilities in the region,” said Trent Iliffe, joint managing director, Logos.

“We have been in India for over two decades, developing iconic business and IT Parks… Entering the industrial and logistics sector is a natural progression,” Miguel Ko, group CEO Ascendas-Singbridge said.

Srinivas N, managing director, Industrial Services, of Chicago-based JLL India, said, “Thanks to fresh investments, supply and interest in this sector, the Indian logistics industry is set to reach the next level.”

“It is a good time for developers/investors to evaluate this sector to add to quality organized warehousing infrastructure keeping in perspective the latent demand and consolidation/expansion expected post-GST roll out,” said Shyam Arumugam, associate director, Office Services, of Canada-based Colliers International India.

Amazon and DHL announced plans to expand their warehouses, reports BusinessLine.

warehouse

August 21, 2017   No Comments

Demand for Retail Space in India Surges

According to Los Angeles headquartered CBRE’s India Retail MarketView Report – H1, 2017, during the first 6 months of the year, there were 70 new entries/expansions by global and domestic brands across the cities of Mumbai, Delhi-NCR and Bangalore. Seven new global brands entered the country and investments into the segment by PE firms/wealth funds touched $200 million.

 Anshuman Magazine, chairman, India & South East Asia, CBRE said, “Our ranking on the 2017 Global Retail Index for developing countries as well as continued investment by private equity players is a demonstration of the sustained preference of international brands to set up, or expand their operations in India. With several legislation and policies in implementation mode, we are already seeing an increase in consumer and investor confidence. This will have a cascading effect on the retail segment. Overall, retail real estate will continue to grow and witness healthy demand across tier I and II cities.”

City Highlights

NCR

  • Approx. 200,000 square feet of fresh supply entered the market
  • Low vacancy levels led to select micro-markets in the city witnessing rental appreciation for prime retail developments

Mumbai

  • Leasing activity was driven by domestic F&B operators and foreign retailers from various segments
  • Over 1 million swuare feet of supply was added with opening of the  Seawoods Grand Central Mall
  • Rentals on Linking Road recorded a minor correction while rental values across other high streets and organized retail developments remained largely stable

Bangalore

  • Approximately 300,000 square feet of fresh retail supply entered the market
  • Rental values across high streets and shopping centers remained stable
  • In the coming quarters, sustained traction from both global and domestic brands may lead to rental appreciation in organized developments in the Central, Eastern and Western locations

CBRE says: Going forward, to effectively operate under the new GST regime, retailers will need to review their product pricing based on market expectations, align their supply chain and procurement strategy, rework their distribution channels, and ensure greater compliance to laws to be more cost-effective.

A Mall

August 19, 2017   No Comments