Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

Final Report
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DEVELOPMENT ADVISORY SERVICES FOR

PROPOSED MIXED-USE DEVELOPMENT
PROJECT ON 11.3 ACRES LAND PARCEL
LOCATED IN THRISSUR, KERALA, INDIA

FINAL REPORT

SUBMITTED TO

KENZ INN COMMERCIAL COMPLEX LIMITED

THRISSUR, KERALA, INDIA

SUBMITTED BY

Jones Lang LaSalle Property Consultants India Private Limited

Level 3, Concorde UB City, No. 24, Vittal Mallya Road,
Bangalore - 560 001
Ph : +91 80 4118 2900, Fax: +91 80 4118 2901
Internet: www.joneslanglassale.co.in

MARCH 2014

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

Final Report
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CONTROLLED COPY
Report for

Development Advisory Services for Proposed Mixed-Use

Development Project on 11.3 Acres Land Parcel Located in Thrissur,
Kerala, India
Submitted to

Kenz Inn Commercial Complex Limited

Thrissur, Kerala, India
Document Number:

2013/04/DEVELOPMENT ADVISORY/YU/BLR/428

Document Status:

Final Report

Date:

March 18, 2014

Document prepared by:

Abhilasha Bhagat & Y. Umakanth

Document approved by:

Girish K. S.

No. of copies circulated:

02

Circulation
Copy 01: Kenz Inn Commercial Complex Limited, Thrissur, Kerala, India
Copy 02: Office Copy - Bangalore

Contact Information
For further information please contact:
Mr. Girish K. S. MRICS
Local Director - Strategic Consulting
Jones Lang LaSalle Property Consultants India Private Limited
Level 3, Concorde, UB City, #24, Vittal Mallya Road
Bangalore - 560 001
Ph: +91 80 4118 2900, Fax: +91 80 4118 2901
Mobile: +91 9900154567
E-mail: [email protected]

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

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TABLE OF CONTENTS
1

THE ASSIGNMENT ................................................................................................... 10

1.1
1.2
1.3
1.4

INTRODUCTION .......................................................................................................... 10
SCOPE OF W ORK ....................................................................................................... 10
LIMITATIONS TO THIS ASSIGNMENT .............................................................................. 11
DISCLAIMER AND PROFESSIONAL INDEMNITY ............................................................... 12

PROFILE OF THRISSUR CITY .................................................................................... 13

2.1
2.2
2.3
2.4
2.5

THRISSUR SNAPSHOT................................................................................................. 13
REGIONAL CONNECTIVITY ........................................................................................... 14
DEMOGRAPHIC CHARACTERISTICS .............................................................................. 15
SOCIO-ECONOMIC CHARACTERISTICS ......................................................................... 16
ECONOMIC CHARACTERISTICS .................................................................................... 17

2.5.1
2.5.2

2.6
2.7

KEY INFRASTRUCTURE INITIATIVES .............................................................................. 20

FUTURE GROWTH DIRECTIONS ................................................................................... 22

REAL ESTATE MACRO-MARKET TRENDS ................................................................. 23

3.1
3.2
3.3
3.4
3.5
3.6

GENERAL SECTOR TRENDS ........................................................................................ 23

RESIDENTIAL SUB-SECTOR ......................................................................................... 24
CORPORATE / OFFICE (COMMERCIAL) SUB-SECTOR .................................................... 33
ORGANIZED RETAIL SUB-SECTOR ............................................................................... 35
HOSPITALITY SUB-SECTOR ......................................................................................... 40
MICE SUB-SECTOR ................................................................................................... 41

3.6.1
3.6.2
3.6.3
3.6.4
3.6.5
3.6.6

DETAILS OF THE PROJECT SITE ................................................................................... 54

LOCATION OF THE PROJECT SITE ................................................................................ 54
DESCRIPTION OF THE PROJECT SITE ........................................................................... 55
INFRASTRUCTURE DEVELOPMENT INITIATIVES NEAR THE PROJECT SITE ........................ 59
SWOT ANALYSIS FOR THE PROJECT SITE ................................................................... 59
APPLICABLE DEVELOPMENT CONTROLS AND REGULATIONS.......................................... 59

EVALUATION OF DEVELOPMENT MIX OF THE PROJECT .............................................. 62

5.1
5.2

GENERAL SECTOR TRENDS ................................................................................................. 41

MICE MARKET - INDIAS GLOBAL POSITION .......................................................................... 42
THE INDIAN CONVENTION INDUSTRY .................................................................................... 44
SUMMARY FINDINGS AND OBSERVATIONS ............................................................................ 47
CONVENTION INDUSTRY IN KERALA ...................................................................................... 47
LULU INTERNATIONAL CONVENTION CENTER ........................................................................ 49

PROJECT SITE ANALYSIS AND DEVELOPMENT CONTROL & REGULATIONS .................. 54

4.1
4.2
4.3
4.4
4.5
4.6

FUNCTIONAL BASE OF THE CITY........................................................................................... 17

KEY ECONOMIC DRIVERS OF THE CITY ................................................................................. 17

PROPOSED DEVELOPMENT MIX ON THE PROJECT SITE ................................................ 62

MARKET FEASIBILITY MATRIX FOR OVERALL DEVELOPMENT ......................................... 63

CATCHMENT DELINEATION AND MICRO-MARKET ASSESSMENT.................................. 67

6.1
6.2

BACKGROUND ............................................................................................................ 67
CATCHMENT DELINEATION AND ANALYSIS ................................................................... 68

6.2.1
6.2.2

6.3

CATCHMENT DELINEATION .................................................................................................. 68

CATCHMENT ASSESSMENT AND ANALYSIS ............................................................................ 70

REAL ESTATE MICRO-MARKET SUB-SECTOR TRENDS .................................................. 74

6.3.1
6.3.2
6.3.3
6.3.4

MICRO-MARKET OVERVIEW ................................................................................................. 74

RETAIL SUB-SECTOR .......................................................................................................... 75
COMMERCIAL / OFFICE SUB-SECTOR ................................................................................... 81
RESIDENTIAL SUB-SECTOR ................................................................................................. 84

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

6.3.5

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HOSPITALITY SUB-SECTOR ................................................................................................. 84

RETAIL SHOPPING BEHAVIOR ANALYSIS .................................................................. 85

7.1
7.2

GENERAL................................................................................................................... 85
RETAIL SHOPPING BEHAVIOR OF TARGET POPULATION ................................................ 85

DEMAND SUPPLY ANALYSIS FOR RETAIL MALL AND BROAD TENANT MIX .................. 91
8.1
8.2
8.3
8.4
8.5

GENERAL................................................................................................................... 91
METHODOLOGY ADOPTED FOR DEMAND SUPPLY ANALYSIS .......................................... 91
DEMAND ASSESSMENT FOR RETAIL SPACE .................................................................. 92
DEMAND-SUPPLY-GAP ASSESSMENT .......................................................................... 99
BROAD TENANT MIX AND POSITIONING ...................................................................... 100

DEVELOPMENT MIX, BUSINESS PLAN AND FINANCIAL FEASIBILITY ASSESSMENT ...... 105
9.1
9.2

PROPOSED DEVELOPMENT MIX ON THE PROJECT SITE .............................................. 105

OVERALL PROJECT CONFIGURATION ......................................................................... 106

9.2.1
9.2.2
9.2.3

BUILT-UP AREA AND SALEABLE AREA STATEMENT ............................................................. 106

CAR PARKING PROVISION ................................................................................................. 106
DEVELOPMENT PHASING ................................................................................................... 107

9.3 KEY COST AND REVENUE ASSUMPTIONS ................................................................... 107

9.4 ESTIMATED PROJECT COST ...................................................................................... 112
9.5 CAPITAL STRUCTURING AND DEBT REPAYMENT SCHEDULE ........................................ 112
9.6 FINANCIAL ANALYSIS AND BUSINESS PLAN FOR THE PROPOSED FIRST PHASE
DEVELOPMENT................................................................................................................... 116
9.6.1
9.6.2
9.6.3

9.7
9.8

10

CONSOLIDATED BUSINESS PLAN FOR THE ENTIRE FIRST PHASE DEVELOPMENT ................... 116
BUSINESS PLAN FOR THE RETAIL MALL AND MULTIPLEX ..................................................... 122
BUSINESS PLAN FOR THE SHOWROOM AND OFFICE SPACE ................................................. 126

FINANCIAL INDICATORS FOR THE PROPOSED DEVELOPMENT ...................................... 133

SENSITIVITY / RISK ANALYSIS.................................................................................... 133

ANNEXURE ....................................................................................................... 137

10.1
10.2
10.3
10.4

DESCRIPTION OF SOCIO ECONOMIC CLASSIFICATION .............................................. 137

PERCEPTION ANALYSIS FROM PROMINENT RETAILERS IN THRISSUR AND KOCHI ....... 139
PERCEPTION ANALYSIS FROM OCCUPIERS SURVEY IN KOCHI AND BANGALORE ........ 141
BROAD TENANT MIX FOR THE PROPOSED MALL...................................................... 141

LIST OF TABLES
Table 2.1: Salient Features of Thrissur City ..................................................................................... 13
Table 2.2: Demographic Features of Thrissur City (Municipal Corporation Area) and Thrissur UA
as per the 2011 Census ................................................................................................................... 16
Table 2.3: Population Details and Growth Trends in Population of Thrissur City (Municipal
Corporation Area) ............................................................................................................................. 16
Table 2.4: Working SSI/MSME Units Registered in Thrissur and Kerala ........................................ 18
Table 2.5: Working SSI/MSME Units Registered in Thrissur........................................................... 18
Table 2.6: District-wise Investment and Employment in KSIDC Units............................................. 19
Table 2.7: Tourism Statistics of Thrissur District and Kerala State ................................................. 20
Table 2.8: Overview and Salient Features of Major Infrastructure Projects in Thrissur .................. 21
Table 3.1: Select List of Builders and Developers Active in Thrissur City ....................................... 24
Table 3.2: Description of Key Residential Development Zones in Thrissur City ............................. 26
Table 3.3: Average Capital Value of Residential Space in Prime Locations of Thrissur City ......... 28
Table 3.4: Historic Trends in Residential Apartment Capital Values in Select Micro-Markets in
Thrissur City...................................................................................................................................... 29
Table 3.5: Other Charges Levied for Residential Developments in Thrissur .................................. 30
Table 3.6: Prominent Graded Residential Projects in Thrissur City ................................................ 30
Table 3.7: Profile of Buyers in Thrissur for Residential Apartment Projects .................................... 31

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11.3 Acres Land Parcel Located in Thrissur, Kerala, India

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Table 3.8: Major Commercial Establishments in Swaraj Round, Thrissur ...................................... 33

Table 3.9: Lease Rentals for Commercial Space in Prime Locations within Thrissur City.............. 34
Table 3.10: Overview of Retail Market in Select Zones of Thrissur City ......................................... 35
Table 3.11: Overview of High-street Retail Market in Thrissur City ................................................. 36
Table 3.12: Lease Rentals and Capital Values for Retail Space in Thrissur City............................ 36
Table 3.13: Lease Rentals for Retail Space in Prime Locations in Thrissur City ............................ 38
Table 3.14: Leasable Area Details in Sobha City Mall in Thrissur City ........................................... 40
Table 3.15: Inventory of Prominent Hotels in Thrissur City ............................................................. 40
Table 3.16: Market Share of International Conventions and Meetings in Asia Pacific .................... 43
Table 3.17: Market Performance of MICE Market in India............................................................... 44
Table 3.18: Availability of Facilities for MICE Events in Major Cities in India .................................. 45
Table 3.19: Most Sought Convention Facilities in India ................................................................... 46
Table 3.20: Distance from Major Landmarks from Lulu ICC............................................................ 49
Table 3.21: Average Daily Room Rate for Hotel Rooms at Lulu ICC .............................................. 50
Table 3.22: Details of Lulu International Convention Centre ........................................................... 51
Table 3.23: Technical Details of Lulu International Convention Centre........................................... 51
Table 3.24: Details of Conference Halls at Lulu International Convention Centre .......................... 53
Table 4.1: Details of the Project Site ................................................................................................ 54
Table 4.2: Distances of the Project Site from Major Landmarks in the City .................................... 55
Table 4.3: SWOT Analysis for the Project Site ................................................................................ 59
Table 4.4: Break-Up of Area Statement for First Phase Development on the Project Site ............. 60
Table 5.1: Break-Up of Area Statement for First Phase Development on the Project Site ............. 62
Table 5.2: Summary Sector Assessment and Recommended Development Mix for Project Site
under Different Phases ..................................................................................................................... 64
Table 6.1: Framework on Methodology Adopted for Primary Demand Assessment Surveys ........ 67
Table 6.2: Catchment Details of Project Site ................................................................................... 70
Table 6.3: Key Socio-Economic Features of the Primary and Secondary Catchment of the Project
Site .................................................................................................................................................... 70
Table 6.4: Key Demographic Features of the Catchment Area of the Project Site ......................... 71
Table 6.5: Existing and Projected SEC A & B Population and Households within the Catchment
Area of the Project Site .................................................................................................................... 72
Table 6.6: Overview of the Micro-Market Situation for the Project Site ........................................... 74
Table 6.7: Price Benchmarking - Achievable Rentals for the Proposed Mall on the Project Site ... 81
Table 6.8: Price Benchmarking - Achievable Rentals for the Proposed Commercial / Office Space
(on Warm Shell Basis) on the Project Site ....................................................................................... 82
Table 6.9: Suggestive Format Sizes and Recommended Achievable Rentals for the Proposed
Commercial / Office Space (on Warm Shell Basis) on the Project Site........................................... 83
Table 8.1: Methodology for Estimating Retail Demand Supply Gap for the Catchments of the
Project Site ....................................................................................................................................... 91
Table 8.2: Retail Demand Estimate for the Catchment of the Project Site ...................................... 92
Table 8.3: Derivation of Potential Retail Demand for the Catchment of the Project Site for the Year
2013 for Different Retail Categories ................................................................................................. 93
Table 8.4: Estimation of Retail Demand of Thrissur City ................................................................. 99
Table 8.5: Demand-Supply-Gap for the Potential Retail Space for the Project Site for the Year
2013 and 2016................................................................................................................................ 100
Table 8.6: Location Preference of Retail Categories within the Mall as Indicated by the Retailers in
Thrissur ........................................................................................................................................... 101
Table 8.7: Potential Formats and Brands for Proposed Retail Mall on the Project Site ................ 102
Table 9.1: Break-Up of Area Statement for First Phase Development on the Project Site ........... 105
Table 9.2: Product Mix and Built-Up Area and Saleable / Leasable Area Statement for the First
Phase of the Development on the Project Site .............................................................................. 106
Table 9.3: Car Parking Provision for the First Phase of the Development on the Project Site ..... 106
Table 9.4: Proposed Development Phasing for the Project Site ................................................... 107
Table 9.5: Key Cost and Revenue Assumptions used for Business Plan for the Project Site ...... 107
Table 9.6: Estimated Project Cost for the Proposed First Phase Development on the Project Site
........................................................................................................................................................ 112
Table 9.7: Capital Structuring Used in the Business Plan for the First Phase of Development on the
Project Site ..................................................................................................................................... 112

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11.3 Acres Land Parcel Located in Thrissur, Kerala, India

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Table 9.8: Capital Structuring, Debt Repayment Schedule and Debt Indicators for the First Phase
Proposed Development on the Project Site (Year 1 to Year 8) ..................................................... 114
Table 9.9: Capital Structuring, Debt Repayment Schedule and Debt Indicators for the First Phase
Proposed Development on the Project Site (Year 9 to Year 15) ................................................... 115
Table 9.10: Business Plan for the First Phase Proposed Development on the Project Site (Year 1
to Year 8) - Consolidated ............................................................................................................... 116
Table 9.11: Consolidated Business Plan for the First Phase Proposed Development on the Project
Site (Year 9 to Year 15) - Consolidated ......................................................................................... 119
Table 9.12: Business Plan for the First Phase Proposed Development on the Project Site (Year 1
to Year 8) - Retail Mall and Multiplex ............................................................................................. 122
Table 9.13: Business Plan for the First Phase Proposed Development on the Project Site (Year 9
to Year 15) - Retail Mall and Multiplex ........................................................................................... 124
Table 9.14: Business Plan for the First Phase Proposed Development on the Project Site (Year 1
to Year 8) - Showroom and Office Space ...................................................................................... 126
Table 9.15: Business Plan for the First Phase Proposed Development on the Project Site (Year 9
to Year 15) - Showroom and Office Space .................................................................................... 129
Table 9.16: Key Financial Indicators for the First Phase Proposed Development on the Project Site
........................................................................................................................................................ 133
Table 9.17: Sensitivity Analysis - Behavior of the Project Cost and Performance of the Key
Financial & Bankability Indicators for the Proposed First Phase Development on the Project Site
........................................................................................................................................................ 135

LIST OF MAPS
Map 2.1: Map on Regional Connectivity of Thrissur ........................................................................ 15
Map 2.2: Growth Trends and Growth Corridors in Thrissur City ..................................................... 22
Map 3.1: Overview of Real Estate Sub-Sectors in Thrissur City ..................................................... 23
Map 3.2: Residential Development Zones in Thrissur City .............................................................. 27
Map 3.3: Key Residential Development Projects in Thrissur City ................................................... 32
Map 3.4: Map Showing Major Retail Corridors of Thrissur City ....................................................... 37
Map 4.1: Location of Project Site ..................................................................................................... 55
Map 4.2: Map on Location of the Project Site and its Surroundings................................................ 58
Map 6.1: Map Showing the Primary and Secondary Catchment of the Project Site ....................... 69
Map 6.2: Map Showing the Urban Centers of Tertiary Catchment of the Project Site .................... 70
Map 6.3: Map Showing the Key Retail Developments in the Primary and Secondary Catchment of
the Project Site ................................................................................................................................. 76

LIST OF ABBREVIATIONS
ADR
BHK
BPO
BUA
CBD
CCTV
CDR
CPU
DBM
DCR
DSCR
F&B
FAR
FPI
GBC
GDP
GLA
GoI

Average Daily Room Rate

Bedroom Hall and Kitchen
Business process outsourcing
Built-Up Area
Central Business District
Closed-circuit television
Credits Deposit Ratio
Car Parking Unit
Dense Bitumen Macadam
Development Controls & Regulations
Debt Service Coverage Ratio
Food & Beverages
Floor Area Ratio
Food Processing Industries
Global Business Conexxtions
Gross Domestic Product
Gross Leasable Area
Government of India

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

GoK
GSDP
Ha
HNI
ICSC
INR
IT
ITES
KBF
KFC
KILA
KINFRA
km
KMBR
KSEB
KSIDC
KSRTC
KSUDP
KTDC
KWA
LSGD
MSL
MSME
MT
NBA
NCA
NH
NHAI
NRIs
NRKs
PBD
PBD
PBSEZ
PPP
PWD
SBD
SEC
SEZ
SH
sq. ft.
sq. m
SSI
SWOT
TDA
TMC
UA
USP

Government of Kerala
Gross State Domestic Product
Hectare
High-Net-Worth Individual
International Council of Shopping Centers
Indian National Rupees
Information Technology
Information Technology Enabled Services
Kerala Builders Forum
Kerala finance corporation
Kerala Institute of Local Administration
Kerala Industrial Infrastructure Development Corporation
Kilo-metre
Kerala Municipality Building Rules
Kerala State Electricity Board
Kerala State Industrial Development Corporation
Kerala State Road Transport Corporation
Kerala Sustainable Urban Development Project
Kerala Tourism Development Corporation
Kerala Water Authority
Local Self Government Department
Mean Sea Level
Micro Small and Medium Enterprises
Metric Tonne
National Board of Accreditation
Net Cash Accrual
National Highway
National Highway Authority of India
Non Resident Indians
Non Resident Keralites
Peripheral Business District
Peripheral Business District
Port Based Special Economic Zone
Public-Private-Partnership
Public Works Department
Secondary Business District
Socio-Economic Category
Special Economic Zone
State Highway
square feet
square metre
Small Scale Industries
Strength-Weakness-Opportunity-Threat
Thrissur Development Authority
Thrissur Municipal Corporation
Urban Agglomeration
Unique Selling Proposition

CONVERSION OF UNITS
1 hectare
1 acre
1 acre
1 sq. km
1 sq. m
1 sq. m

2.4711 acres
43559.66 sq. ft.
4046.9 sq. m
247.11 acres
1.196 sq. yards
10.764 sq. ft.

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Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

1 meter
1 meter
1 cent
1 acre

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1.0936 yards
3.28 ft.
435.6 sq. ft.
40 guntas

GLOSSARY OF TERMS

Anchor Store: In retail, an Anchor store is one of the larger stores in any mall or shopping
center which is the main attraction and draws retail traffic to the center.

Bare Shell (Commercial Building): The said premises shall include only building shell and
core. This includes connected power, water supply, common lifts and staircase. Also termed as
Cold Shell.

Built Up Area/Gross Floor Area: The exclusive floor area allocated to tenants measured from
the exterior of the enclosing walls for a unit. It excludes the common areas such as stairs, lift
shafts, lobbies. The built-up area (BUA) of a building is the sum of BUA of all the floors. BUA is
typically 20-25% higher than the carpet area

Capital Value: The price at which a sale transaction takes place. [Capital Value=Rent per
year/Yield]

Carpet Area: The exclusive floor area allocated to tenants measured from the interior of the
enclosing walls for a unit. It excludes the common areas such as stairs, lift shafts, lobbies.

CBD: Central Business District (CBD). Generally the central part of the city where most of the
commercial activities in terms of office and retail is concentrated. It extends up to a radius of 3
to 5 km around the area.

Commercial Office (Non IT/SEZ) Building: Unlike IT Parks and SEZs, Office space within
Commercial Office Buildings can be leased/sold to occupiers from any industry and the
occupiers may not have any tax advantages of locating in them.

Commercial Retail Units (CRU) / Line Shops: These are small format stores or specialty
stores dealing in specific product category within a mall.

Floor Area Ratio (FAR): This is the quotient obtained by dividing the total area covered
(pedestal area) on all floors, divided by the total area of the plot. In a nutshell, FAR = Total
covered area of all floors /Total plot Area)

Floor Plate: The extent of rentable/ leasable area on one whole floor, sometimes also called
as the footprint

Footfall Conversions: Proportion of visitors to a retail outlet actually making purchase during
the visit. Expressed in numbers or percentage

Ground Coverage: It is the ratio of the building footprint and the total plot area. It is generally
expressed in percentage.

High Streets: Main street of a town with concentration of retail stores and other business
along side

Interest Rate: The rate of interest in effect for the monthly payment due.

IT Park: A building which conforms and functions according to the guidelines of the Software
Technology Parks of India (STPI) regulations. STPI aids IT companies with various
infrastructure issues like connectivity, land procurement etc. currently all IT parks are governed
by section 80/A if income tax laws

Market Study: A forecast of future demand for a certain type of real estate project that
includes an estimate of the square footage that can be absorbed and the rents that can be
charged. Also called Marketability Study.

Matriculation: In India, matriculation is a term commonly used to refer to the final year of high
school, which ends at tenth standard (tenth grade), and the qualification consequently received

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

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by passing the national board exams or the state board exams, commonly called "matriculation
exams". English is the standard language for matriculation, while regional languages are also
an option. Most students who pass out of matriculation, or class 10, are 1516 years old. Upon
successfully passing, a student may continue onto junior college. The 11th and 12th standards
are usually referred to as "first year junior college" and "second year junior college".

Micro-market: A micro-market is a geographical segment of the city, typically categorized as

Central Business District (CBD), Secondary Business District (SBD) and Peripheral Business
District (PBD).

Minimum guarantee: A floor lease rent is mutually agreed between the developer and the
Tenant. In case the revenue generated from the store does not exceed the pre-determined
revenue generation figure then, this Minimum guarantee lease rent is paid to the developer.

Mixed-Use: Space within a building or project providing for more than one use (i.e., a loft or
apartment project with retail, an apartment building with office space, an office building with
retail space).

Occupancy Cost: The percentage of turnover that a retailer can afford/ willing to pay to
occupy the premises.

Real Estate: Also called "real property." (1) Land and anything permanently affixed to the land,
such as building, fences and those things attached to the buildings, such as light fixtures,
plumbing and heating fixtures, or other such items that would be personal property if not
attached. (2) May refer to rights in real property as well as the property itself.

Revenue share: Instead of a pre-committed rent, a pre-determined percentage share of sales

at the store is given to the developer towards rent contribution.

Socio-Economic Classification (SEC): This classification of Indian consumers is on the basis

of two parameters: occupation and education of the chief wage earner (Head) of the
households.

Super Built up Area: Total leasable space in a building, usually a sum of the carpet
area/usable area, common areas (like, entrance lobby, lift lobby, stairwell, etc in a multitenanted building) and areas earmarked for services. this usually excludes the basement of
basement is used for parking and utilities

Supply: The sum of built-up area of all building completions in a given period

Utilities: The private or public service facilities such as gas, electricity, telephone, water, and
sewer that are provided as part of the development of the land.

Warm Shell (Commercial Building): Warm shell premises refer to building with not only
electricity connection but also have all services such as high side air-conditioning, 100% power
back-up. Main plant and equipment such air-handling units, diesel generator sets and chillers
shall be operational for servicing the said Premises, and ready for the tenant to connect to.

Yield: The interest earned or return by an investor on an investment, stated as a percentage of

the amount invested.

Zoning: The division of a city or town into zones and the application of regulations having to
do with the structural, architectural design and intended use of buildings within such
designated zone (i.e. a tenant needing manufacturing space would look for a building located
within an area zoned for manufacturing).

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

THE ASSIGNMENT

1.1

INTRODUCTION

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Kenz Inn Commercial Complex Limited (hereinafter referred to as the Client) intends to
develop a multi-dimensional mixed use real estate project on a land parcel measuring
about 11.3 acres located in Thrissur, Kerala, India (hereinafter referred to as the Project
Site). Proposed mixed-uses would comprise of a shopping mall, office and showroom
spaces, hotel as well as residential apartments with the construction taking place in phases
(in 3 phases). First phase of the development is expected to have Commercial/Office and
Retail Mall & Showroom Space, spread over about 4.46 acres.
In this regard, the Client intends to carryout comprehensive market analysis to:
a) assess the market feasibility for various uses/activities proposed as part of the overall
integrated development in medium- & long-term (in all 3 phases), inter-dependency,
value add in positioning and key critical success factors for development of such
use/activity; and
b) assess the feasibility of the project components proposed under the Phase 1
(Commercial/Office and Retail Mall), its medium- and long-term viability and to assess
possible risks and rewards based on detailed primary surveys of the customers. In
addition, the Client also intends to understand the financial feasibility of the
development proposed under First Phase based on the prevailing market conditions,
proposed positioning, phasing and other development aspects of the upcoming
development.
Jones Lang LaSalle (hereinafter referred to as the Consultants) have been appointed to
provide services on the above said Development Advisory for the Project Site. The
Consultants are one of Indias leading international property consultants, specializes in
providing real estate advice to corporates and institutions, offer full line of real estate
services, i.e., Consulting, Research, Agency, Valuation, Project Management, Facilities
Management, Property Maintenance & Investment Consultancy.

1.2

SCOPE OF WORK
Broadly, the scope of work covers the following key areas / aspects:
City Overview and Macro-Market Assessment

Overview of the city;

Demographic and socio-economic characteristics of the population of the city;
Infrastructure development initiatives in the city and future growth direction; and
Macro-market assessment of core and/or relevant real estate sectors proposed in the
mixed-use development (like prime residential, commercial / office, organized retail,
hospitality (3-star & above, convention centre and serviced apartments).

Site Analysis and Micro-Market Assessment

Site analysis and SWOT analysis of the site;

Catchment delineation and analysis;
Detailed real estate micro-market assessment for core and/or relevant real estate
sectors (like prime residential, commercial / office, organized retail, hospitality (3-star &
above, convention centre and serviced apartments) with larger emphasis/focus on
commercial / office and organized retail with broad coverage of prime residential (as
support to retail), which are proposed in First Phase of development;

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11.3 Acres Land Parcel Located in Thrissur, Kerala, India

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Local market dimensions for Commercial/Office and Retail, supply & competitor
analysis including competitive benchmarking;
Detailed market assessment for retail mall comprising customer spending pattern
analysis, market potential assessment, retail demand assessment based on trade area
analysis covering total potential, ticket sizes, etc.; and
Assessment of demand drivers, demand-supply-gap analysis and potential demand for
the Project Site based on market share analysis.

Assessment of Concept Plan and Tenant Mix/Positioning for Retail Mall

Review the concept design and provide design inputs based on market assessment -to cover scope & suggestions for improvements, missing components & amenities,
ease of access, impact of the site location and any other aspects;
Assessment of the built-up areas versus saleable areas -- to cover potential target
occupant categories, optimum size ranges for shop units, suggestions for potential
anchor tenants and mix of other shopping units & types; and
Validation and/or confirmation of final area statement / saleable area configuration
based on the development controls and market practices.

Business Plan Preparation and Financial Feasibility (only for Phase 1)

1.3

Competitive benchmarking and suggestions on achievable pricing for the proposed

development on the Project Site (for anchor, vanilla, leisure & entertainment, multiplex,
food court, etc. and commercial/office space on warm shell basis);
Key business performance parameters and assumptions used in the assessment
(based on the market assessment and considering the proposed positioning and retail
advisory outcome);
Financial feasibility and sensitivity analysis:
o Startup capital requirements;
o Startup capital sources;
o Potential returns for investors;
o Capital distribution and outlay.
o Projected cash-flow.
o Industry, regulatory and compliance norms;
o Sources of revenue and sales projection; and
o Financial validation document for financial institutions.
o Risk Assessment Report
Conclusions and recommendations based on the market assessment and feasibility
assessment.

LIMITATIONS TO THIS ASSIGNMENT

Following are some of the limitations to this assignment:

The interpretation of real estate key trends is based on rapid market assessment and
interactions with limited key players in real estate market, viz. developers, brokers and
investors. Hence, they are indicative of situations prevalent at the time of assessment;

All facts & figures, findings, conclusions of the macro- and micro-market assessment
are captured from key players in the real estate market as indicated above. Hence,
they are indicative of situations prevalent at the time of assessment;

The development options prescribed in this assignment is a result of our assessment of

the indicative demand and supply that could be captured within the time period allotted
for the assignment and hence is indicative; and

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11.3 Acres Land Parcel Located in Thrissur, Kerala, India

1.4

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The development options are indicative of what may be most practical, marketable and
remunerative for the Client. The anticipated returns are worked out in a conservative
and realistic manner.

DISCLAIMER AND PROFESSIONAL INDEMNITY

In most cases, the Consultants have relied on market information, from public and private
sources, and have ensured to the best of its ability the correctness and the validity of the
same, by cross checking from various sources. However, property markets in large cities
and urban centers continue to be plagued by misinformation, non-disclosure and
fragmentation, wherein almost inevitably some information is withheld in every case.
To mitigate this, a structured and scientific approach has been undertaken for the
assessment, which ensures, that proposed developments selected for the assignment are
promoted by reputed developers and corporate houses, with many of which Jones Lang
LaSalle has a professional relationship.
Whilst every effort has been made to provide authentic data and analysis, Jones Lang
LaSalle or any of its employees are not responsible for any loss, major or minor incurred
on the basis of the information and analysis provided and not liable to any damages in any
form or shape.

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

PROFILE OF THRISSUR CITY

2.1

THRISSUR SNAPSHOT

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Thrissur is the headquarters city of Thrissur District and the 5th largest city in Kerala.
Thrissur is the 3rd largest Urban Agglomeration (UA) with a population of about 1,854,783
(provisional as per the 2011 census) and the 21st largest in India. Thrissur is located 75 km
from Kochi, 112 km west of Coimbatore and 122 km south of Kozhikode. The city is
located at a distance of about 300 km from the state Capital City Thiruvananthapuram
(Otherwise called as Trivandrum).
Thrissur was originally called as Thrisivaperoor1 and was once the capital of the Kingdom
of Cochin. The city is popularly known as the Cultural Capital of Kerala because of its
cultural, spiritual and religious leanings throughout history. The city attracts the highest
number of domestic tourists in Kerala and is maximum when the city hosts Thrissur
Pooram Festival, which is the most colorful and spectacular temple festival in Kerala. The
region also offers religious attractions for people of communities, which include
Vadakkumnathan Temple, Thiruvambadi Sri Krishna Temple and Paramekkavu Temple,
Our Lady of Lourdes Syro-Malabar Catholic Metropolitan Cathedral and the Our Lady of
Dolours Syro-Malabar Catholic Basilica. Further, Thrissur District houses the holiest Hindu
Temple (the Guruvayur Temple) and Islam Masjid (Cheraman Juma Masjid). Cheraman
Juma Masjid is the countrys first mosque, opened in AD 629, which has opened the gates
for Arabs, Romans, Portuguese, Dutch and English.
Apart from being the cultural headquarters of the state, the city is also a major educational
hub and is home to several educational institutions including the Kerala Kalamandalam,
Kerala Police Academy, Kerala Agricultural University, Kerala University of Medical and
Allied Sciences and Kerala Institute of Local Administration (KILA).
The hillock (65 acres), which presently houses Vadakkumnathan Temple form the core
area of the city and the city grew around this hillock called the Thekkinkadu Maidan2. At
present, the city branches out from Thekkinkadu Maidan through nine roads, viz. MG Road,
Vivekananda Road, Karunakaran Nambiar Road, Palace Road, Thrissur Palghat Road,
High Road, Kodungallur Shornur Highway, AR Menon Road and Municipal Office Road.
The city acts like an incubator for many entrepreneurs, and is a major financial hub of the
city. The city is also one of the large centre for shopping in Kerala for silks, gold and
diamond jewelry. It is noteworthy that the gold business in the city is a major revenue
earner for the economy of Kerala and Thrissur City manufactures about 70% of gold
jewellery manufactured every year in state. The table below presents some of the salient
features of Thrissur City.
Table 2.1: Salient Features of Thrissur City

City

Thrissur

Population (2011
Census - Provisional)

315,596 (Thrissur Corporation)

373,211 (Thrissur Development Authority)
1,854,783 (Thrissur Urban Agglomeration3)

Area

Thrissur Corporation Area - 101.42 sq.km

Thrissur Development Authority Area - 120.25 sq.km

Thrissivaperur means the town Sacred Siva

Thekkinkadu Maidan is under the custody of the Cochin Devaswom Board (CDB), which hosts spectacular Thrissur Pooram, which is
considered the 'Mother of all Poorams in Kerala. Earlier, Maharaja of Cochin, Rama Varma Sakthan Thampuran constructed the
Thekkinkadu Maidan at the heart of Thrissur after clearing the forest around the Vadakkumnatha Temple.
3 Kodungallur (UA) and Guruvayoor (UA) are merged with Thrissur (UA) for 2011 Census (Source: http://www.kerala.gov.in)
2

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Thrissur District - 3,032 sq.km

Geographic Location

10.52 N Longitude and 76.21 E Latitude

Connectivity and
Linkages

Air: Cochin International Airport is the nearest airport, which is at a distance

of 50 km towards South, on the way to Ernakulum. Calicut Airport is 108 km
north of Thrissur.
Road: The well-connected roads are making Thrissur an easily accessible
city from anywhere in South India. The NH-47 connects the city to the
southernmost tip of India i.e. Kanyakumari.
Rail: The railway station is just one km south-west of the city. There are
several trains connect the city to different parts of India.

Climate

Tropical climate
Monsoon season: June - September (heavy rains)
Mild winter: October - February (cool, dry with occasional rain)
Summer: March - May (hot and humid)

Temperature

Highest maximum temperature of 35 degree C

Lowest minimum temperature of 20 degree C

Languages

Regional language: Malayalam

English is widely understood. Hindi and Tamil are used occasionally

City Administrator

Thrissur Municipal Corporation

City Functions

District Headquarters, Cultural Capital of Kerala

Distance of
International Airport
from City

50 km (Cochin International Airport)

Key Advantages of
Thrissur

A major domestic religious tourist destination

Availability of cheap skilled manpower and talent pool
Location advantage - good connectivity and linkages

Source: Various Government and/or Public Sources and Real Estate Market Research and Analysis; Jones Lang LaSalle; April
2013

2.2

REGIONAL CONNECTIVITY
Thrissur District is bound by Malappuram District in the north, Palakkad District in the east,
Eranakulam District in the south and the Coimbatore District of Tamil Nadu in the
southeast. The regional setting map of Thrissur District is shown in the following page:

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11.3 Acres Land Parcel Located in Thrissur, Kerala, India

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Map 2.1: Map on Regional Connectivity of Thrissur

Thrissur Region is very well connected to the other regions as indicated in the map above.
The city has access to other parts of state and neighboring states and few countries by
roadways, railways and airways. As described below:
Road: Thrissur is connected to the North-South Corridor of National Highway System
through NH-47. The highway passes through the city and provides connectivity to the
nearby cities such of Kochi, Palakkad and Coimbatore. NH-47 provides two main exit
points at Mannuthy and Thalore to the Thrissur City. Apart from NH-47, the city is
connected by three State Highways, viz. SH-69 (Thrissur-Kuttippuram Road), SH-22
(Kodungallur - Shornur Road), and SH- 75 (Thrissur - Kanjani - Vadanappally Road), which
connects the city with its suburbs and adjoining areas.
Railways: The railway station is just one km south-west of the city. There are several trains
connect the city to different parts of India. There is a broad gauge rail line, which connects
the city to Vettikkattiri, Mullurkkanchery, Mulankunnathukavu, Poonkunnam, Ollur,
Pudukkad, Nellai, Irinjalakuda, Chalakudy, Koratty, Angamaly and Karukutty, along 69 km
line passing through the Thrissur District.
Airways: Cochin International Airport at Nedumbassery is located at a distance of about 50
km south of the city and is the nearest airport. Other nearby airport is at Calicut
(Kozhikode), which is located at a distance of about 108 km north of the city. Cochin
International Airport has regular flights to Bangalore, Mumbai, Coimbatore, Delhi, Goa,
Chennai, and Thiruvananthapuram.

2.3

DEMOGRAPHIC CHARACTERISTICS
As per the Census 2011 provisional population totals, Thrissur Municipal Corporation limits
had a population of 315,596 persons while that of the Thrissur UA was 1,854,783 persons.
Thrissur Municipal Corporation Area witnessed negative growth in the population with
respect to the 2011 Census population figures. However, the UA witnessed significant
increase of about 462% with respect to the 2011 Census population figures and this

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11.3 Acres Land Parcel Located in Thrissur, Kerala, India

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increase is attributable to change in the jurisdiction of the Thrissur UA, which comprises of
Thrissur Municipal Corporation (TMC) and five Municipalities of Kunnamkulam, Guruvayur,
Chavakkad, Irinjalakuda, and Kodungallur and 105 Census Towns.
The table below presents key demographic features of Thrissur City (Municipal Corporation
Area) and Thrissur UA as per the 2011 Census.
Table 2.2: Demographic Features of Thrissur City (Municipal Corporation Area) and
Thrissur UA as per the 2011 Census
Sl.

Particulars

Thrissur City

1.

Population (Nos.)

2.

Decadal Population Growth Rate (Percent)

3.

Households (Nos.)

4.

Average Household Size (Persons per Household)

5.

Literacy Rate (Percent)

Thrissur UA

315,516

1,854,783

(0.6)

462
394,635
4.7

97.24

96.19

Source: Census of India; 2011 (Provisional)

It is noteworthy that the literacy rates of both Thrissur and Thrissur UA is higher than
national urban literacy rate (84.98%) and Kerala urban literacy rate (94.99%).
The table below presents population growth trends of Thrissur City (Municipal Corporation
Area) over last 6 decades.
Table 2.3: Population Details and Growth Trends in Population of Thrissur City (Municipal
Corporation Area)
Census Year

Population (Nos.)

Decadal Growth Rate

1961

73,000

--

1971

76,200

4.4%

1981

77,900

2.2%

1991

74,600

-4.2%

2001

317,474

325.6%

2011

3,15,596

-0.6%

Source: Census of India

It is noteworthy that the city population has a very slow growth and the increase in
population during the decade 1991-2001 is primarily due to increase in the jurisdiction of
the Thrissur Municipal Corporation Area. The city has witnessed negative growth during
the last decade.

2.4

SOCIO-ECONOMIC CHARACTERISTICS
Literacy Rate: As per the Census
2011
figures
(provisional),
Thrissur City had a literacy rate
of 97.24% and Thrissur UA had
a literacy rate of 96.19%. It is
noteworthy that the literacy rates
of both Thrissur and Thrissur UA
is higher than national urban
literacy rate (84.98%) and Kerala
urban literacy rate (94.99%).

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Per Capita Income: As per the District wise Per Capita Income at Constant Prices (200405), Thrissur had per capita income of INR 64,629 per annum in the year 2011-12, ranking
5th in the state (Department of Economics and Statistics, Government of Kerala),
registering an average growth rate 9.39% than the previous year (INR 59,080 per annum).
Socio-Economic Classification (SEC) of the City Population: As per the City Skyline data of
year 2012, Thrissur City has about 27.7% of SEC A & B population in city. Description of
the SEC is given in Annexure under Section 9.1.
Credits Deposit Ratio: As per the 2012 Economic Review of Kerala, Thrissur District had a
Credit Deposit Ratio of 81.5%, indicating economic growth in the region and ranks 4th in
the state.

2.5

ECONOMIC CHARACTERISTICS

2.5.1 FUNCTIONAL BASE OF THE CITY

The district wise distribution of Gross State Domestic Product (GSDP)4 at factor cost at
Current Prices indicate that Thrissur District has the third highest income of INR 3,010,494
lakhs during 2011 -12 as against INR 2,570,599 lakhs during 2010-11, registering a growth
rate of 17.11%. However with respect to Constant Prices (2004-05) prices indicated an
annual growth rate of 9.63 percent (2011-12: 2,082,359, 2010-11: 1,889,958).
Thrissur is a major jewellery hub in the country with city manufacturing about 70% of gold
jewellery manufactured every year in state. Gold crafting is one of the major cottage
industries in the city followed by diamond polishing and tyre moulding. The goldsmiths of
Thrissur boasts of a tradition spanning several centuries - from the days when pepper and
other spices were exchanged for the metal from Roman and Arab traders.
This could be one reason for setting up the countrys first International Gemological
Institute (IGI) satellite gemological laboratory at Thrissur. By having a base in the focal
point of Thrissur, IGI aims to provide ease of services, operations and reduction of costs
for jewelers in and around Kerala. IGI is the worlds largest independent laboratory for
testing and evaluating gemstones and fine jewelry. This was established in 1975 in
Antwerp and has its presence in New York, Los Angeles, Toronto, Hong Kong, Mumbai,
the Seepz Zone, Kolkata, New Delhi, Dubai, Tokyo and Tel Aviv. IGI is an ISO accredited
worldwide organization.

2.5.2 KEY ECONOMIC DRIVERS OF THE CITY

Thrissur Gold Ornaments Cluster: Thrissur Gold Ornaments cluster is an agglomeration of
gold ornaments manufacturing units within 25 sq. km. area of Thrissur City. The MSME
(Micro small and medium enterprises of Kerala) conducted a cluster development program
amongst the clusters in the city. The vision of the cluster is to create a strong and
promising industrial base and retain its glowing image by infusion of new technologies,
product diversification, continuous resource - flow and effective intervention by all
stakeholders so as to become a vibrant cluster.
Food Processing Industries: Food processing industry is a sunrise sector that has gained
prominence over the recent years with growth faster than agriculture sector. It has been
recognized as a priority sector in Kerala due to its potential for sustainable and more
inclusive growth, diversification, possibility of generating substantial employment and
further advancement in respect of industrial development in urban and rural areas. FPI in
Kerala are seen in both organized as well as unorganized sectors. The spices, pickles and
4

Source: Economic Review of Kerala

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the marine products are the major food product export from Kerala. Two thirds of Keralas
export income comes from processed food. Dairy products, fish/meat products, rice &
wheat products, ready to eat/ ready to cook products, bakery products, masala powder,
coconut & other oils, Ayurvedic medicines, fruit juices, etc. are the major food items
produced in the State. Kerala Industrial Infrastructure Development Corporation (KINFRA)
is the state agency engaged in the promotion of food processing industry in the State.
KINFRA has set up exclusive Food Processing Parks to suit the specific needs of the food
processing sector and they offer space for food processing units in their 12 Industrial parks,
as the demand for space is high. Out of these, KINFRA Small Industries Park, Koratty,
Thrissur houses about 8 units, covering an area of about 9.393 acres with an investment of
INR 200 million and has an employment of about 308 employees.
Dies and Moulds Cluster: The die making industries started in the city basically in
connection with tile industry. The cluster is located in a geographical area of 25 km
distance from the city center. The average employment in each unit is 10 workers. There
are more than 50 units in this field.
Diamond Cluster: This cluster is located in Adatt, Tholur and Kaiparambu in the city. All the
units are located within a radius 10 km from the city. On an average, this cluster consists of
10 small units and 65 micro units. The process includes cutting and polishing of natural
diamonds. The raw material comes from Surat of Gujarat and the same is been cut into
standard sizes and polished as per the standards in the city. The finished products are
exported to countries like Australia, China, Peru and CIS nations.
Industrial Sector: In the recent past, the Kerala State has made serious efforts to identify
new opportunities and equip it to meet emerging challenges. While traditional industries
like handlooms, coir and cashew are in a difficult phase of development with their inherent
problems, the present Industrial Policy and other related policies of the State are aimed at
enhancing investment opportunities. Emphasis is on Information Technology (IT), which
has started showing positive signs through promotion of IT enabled services. Industrial
Parks, Estates. Industrial infrastructure facilities offered by the State include industrial
parks and estates. Major industries in Thrissur district include Food Processing, Chemicals,
Textiles & Hosiery, Rubber & Plastics, Metal & Light Engineering, Electrical & Electronics,
Wood and Leather. Pattern of industrialization is mainly in the SSI sector with a fair
sprinkling of large and medium industries. Various agencies such as KSIDC, KINFRA and
KFC are involved in industrial promotion by providing financial and infrastructure
assistance to industrial units. The details pertaining to small scale industrial units, small
and medium enterprises and Mini Industrial Estates in Thrissur is presented in the table
below and the same is same is cross referred at the state level.
Table 2.4: Working SSI/MSME Units Registered in Thrissur and Kerala
SSI/MSME
Units Promoted
(Nos.)
Kerala
Thrissur District

Total
Investment
(INR Million)

Value of Goods and

Services Produced
(INR Million)

Employment
Generated (Nos.)

205,987

108,316

371,557

1,021,162

27,465

10,323

21,205

106,755

Source: Directorate of Industries & Commerce

Table 2.5: Working SSI/MSME Units Registered in Thrissur

Name of DA/DP

Total Area
Acquired (Acres)

Area Allotted (Acres)

Total No. of
Units

No. of
Working Units

DP Athani

48.286

43.286

85

79

DP Kunnamkulam

3.0035

2.1

26

19

29.32

21.6

64

15

DP Ayyankunnu

Development Advisory Services for Proposed Mixed-Use Development Project on

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Name of DA/DP

Total Area
Acquired (Acres)

DP Velakkode
Puzhakalpadom
Kerala

Area Allotted (Acres)

24.066

21.866

51.41

40 acres land transferred to

KINFRA

2481.37

2094.76

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Total No. of
Units

No. of
Working Units

35

15

2616

2019

Source: Directorate of Industries & Commerce

Table 2.6: District-wise Investment and Employment in KSIDC Units

No. of Units

Project Cost (INR Million)

Employment
(Nos.)

Public Sector

Private Sector

Public Sector

Private Sector

Thrissur

352.5

72.7

90

Kerala State

25

833.7

9343.7

7460

Source: Directorate of Industries & Commerce

Tourism: Tourism is one of the fastest

growing sectors in the World Economy.
Kerala is today a most sought after
and favored tourism destinations in
India. It is famous for its natural
splendors, the luxurious greenery,
bewitching backwaters and innovative
tourism products. Total revenue
(including direct & indirect) from
tourism during 2011-12 was INR
190.37 billion, an increase of around
10% over the last year (Source:
Department of Tourism, Kerala, 2012).
The increased popularity of the
destinations is evident from the tourist statistics. The Foreign Tourist arrivals to Kerala
during the year 2011-12 were 732,985, an increase of over 11% compared to the previous
year. Whereas, the Domestic Tourist were 9381455, which is an increase of over 9%
compared to the previous year. As per 2012 Economic Review, Ernakulam and Thrissur
are the two leading districts recording the domestic tourists arrivals in the state.
There are a large number of tourist locations in the Thrissur District. Tourists visiting the
district are attracted towards temples and historical monuments. World famous Pooram
Festival (during April-May), Vadakkumnathan Temple, and Archeological Museum are
some of the tourist attractions within the city while Peechi Vazhani Wildlife Sanctuary,
Guruvayoor (famous for Krishna Temple), Athirappaly Vazachal Water Falls, Kerala
Kalamandalam in Cheruthuruthy (Institute for Kathakali and other dance forms) are some
of the tourist attractions in the suburbs of the city.

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The city functions mostly as a transit point for domestic and foreign tourists. Thrissur has a
high incidence of domestic tourists, which can be contributed to the presence of major
religious destinations. The average tourist arrivals are to the tune of 1.6 million domestic
tourists and 3,398 foreign tourists per annum. Foreign tourist inflow witnessed a sharp
decline from 2006. A growth rate of 8.06% was observed in the arrival of domestic tourists
to Thrissur. The tourism statistics of Thrissur District with respect to Kerala State is
presented in table in the following page.
Table 2.7: Tourism Statistics of Thrissur District and Kerala State
Year

Thrissur
Foreign Tourists
Nos.

Kerala

Domestic Tourists

Growth
Rate

Nos.

Growth
Rate

Foreign Tourists
Nos.

Growth
Rate

Domestic Tourists
Nos.

Growth
Rate

2005

2,421

-8.92%

13,27,856

-3.65%

3,46,499

0.28%

59,46,423

-0.43%

2006

4,142

71.09%

13,98,014

5.28%

4,28,534

23.68%

62,71,724

5.47%

2007

4,645

12.14%

15,46,576

10.63%

5,15,808

20.37%

66,42,941

5.92%

2008

3,398

-26.85%

16,71,174

8.06%

5,98,929

16.11%

75,91,250

14.28%

2009

3,452

1.59%

17,33,862

3.75%

5,57,258

-6.96%

79,13,537

4.25%

2010

4,326

25.32%

18,74,211

8.09%

6,59,265

18.31%

85,95,075

8.61%

2011

5,011

15.83%

20,62,032

10.02%

7,32,985

11.18%

93,81,455

9.15%

Source: Tourist Statistics, 2011. Dept. of Tourism, Kerala

2.6

KEY INFRASTRUCTURE INITIATIVES

There are various proactive measures taken up by the Government of Kerala (GoK) in
augmenting & expanding the city physical infrastructure and developing major
infrastructure projects to encourage overall economic development. The following table
summarizes salient features of some of the major infrastructure projects in the city.

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Table 2.8: Overview and Salient Features of Major Infrastructure Projects in Thrissur
Name of the
Infrastructure
Initiative
Medicity

Executing Agency

Development Phase

Infrastructures Kerala
Limited (INKEL) Kerala State
Industrial

Development

Corporation Limited
joint venture

Infopark Thrissur

Government of
Kerala

Location

Area /
Coverage

Medicity Project is conceived mainly to address the growing demand for healthcare Koratty
services in Kerala and also to explore the scope of promoting medical tourism within
the State.
INKEL has done feasibility assessment for developing a Medicity in Koratty.
The proposed Medicity will provide healthcare for all at affordable cost by utilizing the
available resources effectively. It will cater to various healthcare needs at a single
point by providing treatment under various streams of medicine. The facility would
cater to the existing and futuristic needs of the healthcare sector in various aspects
like medical research, education and training etc.
Project is envisaged to have adequate social infrastructure facilities to support the
healthcare requirements.
Third Technology Park in Kerala after Thiruvananthapuram and Kochi, located 45 km
from Kochi and 35 km from Thrissur and around 14 km from the Cochin International
Airport.
First Information Technology Park operational under the 'Hub and Spoke Model'
(where Kochi Info Park acts as a hub and Koratty as the spoke) and it is associated
with Kerala State IT Mission and Kerala State Information Technology Infrastructure
Limited.
The Government of Kerala has allotted 42 acres of land for the Info Park and Info Park
possesses 30 acres of land for the development. The Phase I of Info Park was
launched on October 10, 2009 with 12 medium-sized companies and an office space
of 44,500 sq. ft. The Phase-II of Info Park was inaugurated on January 8, 2010, were
another 18,240 sq. ft. was added. In the Phase-III and final phase, Government is
planning to develop the 25 acres of Info Park as a Special Economic Zone (SEZ) were
0.2 million sq. ft. building will be constructed. The remaining land in the SEZ will be
leased out to IT companies and co-developers for developing their own campuses. It
is said that when the Info Park becomes fully operational, it will have a built-up area of
around 1.4 million sq. ft.

Source: Various Government and/or Public Sources and Real Estate Market Research and Analysis; Jones Lang LaSalle; April 2013

Muringoor
Thekkumuri Village,
Mukundapuram
Taluk, Koratty

42 acres
allotted
30 acres
under
possession

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Other infrastructure projects at the city level, which are under implementation include
augmentation of municipal water supply & drainage system by Kerala Water Authority,
augmentation of municipal solid waste management & urban sanitation program by the
Municipal Corporation, augmentation of SH-69 by the PWD and augmentation of urban
transport jointly by the PWD and NHAI.

2.7

FUTURE GROWTH DIRECTIONS

The physical development of Thrissur City and surrounding Panchayats is along major
transportation corridors, with concentration of development on the major nodal points.
Major retail and commercial activities are concentrated within 2-km radius of the Swaraj
Round, which forms the Central Business District (CBD) of the city. The city has developed
notably towards the north and northwest quadrant augmented by the institutional
developments and the better connectivity. Few of the new initiatives, which are likely to fuel
the economic development include the Information Technology Park and the proposed
Medicity located at Koratty. The map below presents the growth trends and corridors of the
city.
Map 2.2: Growth Trends and Growth Corridors in Thrissur City

Source: Real Estate Market Research and Analysis; Jones Lang LaSalle; April 2013

The above map represents the major growth corridors in the city. The presence of
institutional developments (Medical College, Civil Station), excellent connectivity along the
north and northwestern part of Thrissur especially along Guruvayoor Road (SH-39),
induced more real estate development along this region. Further the SH-39 is emerging as
prime destination for hospitality, car showrooms and white goods and it is considered as
one of the fast growing corridors of Thrissur City. The locality adjacent to NH-47 bypass is
also forming a major mixed use destination.
Immediate periphery of the CBD observes residential development. The prime residential
areas are Mission Quarters towards south of CBD, Punkunnam towards North, Paturaykal,
Chembukavu, etc. The upcoming residential areas include Ayyanthol, Puzhackal, Manuthy,
Kuttenalloor, Ollur, Poothol, Koorkencherry, Cheroor, etc.

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REAL ESTATE MACRO-MARKET TRENDS

3.1

GENERAL SECTOR TRENDS

Final Report
- 23 -

Thrissur is one of the important cities of Kerala State and strategically located in close
proximity to the Kochi City, which is the commercial hub of the state. The location
advantages, proximity to Kochi and the proximity to three airports (Kochi, Kozhikode and
Coimbatore) provide good opportunity for the city to grow its economic drivers. Further, the
city is also linked to the Kochi Port by rail and a network of National Highways. The district
administration of Thrissur is trying to leverage the potential of Thrissur and to turn it into a
center of sustainable development. There is a proposal for inter-city connectivity by
creating a Rapid Transit Corridor to the nearest metro cities. Major Government projects
that are proposed to catalyze the development are the construction of Info Park at Koratty,
the KINFRA Park at Puzhakkal, the Medicity at Koratty, the Muziris Heritage Project for
tourism development, etc. These developments, together with the investments from the
non-resident Indians have contributed to the growth of real estate sector in the city. The
map below indicates the major real estate sub-sectors of Thrissur City.
Map 3.1: Overview of Real Estate Sub-Sectors in Thrissur City

Source: Real Estate Market Research and Analysis; Jones Lang LaSalle; April 2013

Following are the prime areas witnessing different real estate activities.

Retail and Commercial: CBD comprising Swaraj Round and the radial roads primarily
housing retail high streets in the ground and first floors and office spaces primarily
housing banking and financial institutions, travel agencies, etc. on the upper floors.
Residential: Mission Quarters, Punkunnam, Patturaickal, Kuttenallor, Ayyanthol,
Poothol, Koorkencherry, Kishakkanpatturkara, Cherror, etc.
Corporate / Office: CBD and Secondary Business District (SBD) areas comprising
Swaraj Round, Thrissur Kuttippuram Road, Shornur Highway, Ayyanthole, etc.
Hospitality: CBD area near Saktan Private Bus Stand, Puzhakkal, etc.
Industrial: Ollurkkara, Adatt, Athani, etc.

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Final Report
- 24 -

There are about 17 members of Kerala Builder Forum (KBF) who are active in the real
estate market of the city. The leading builders include Skyline and Cheloor Properties. Few
developers from outside Thrissur have also entered into the real estate market here. These
include Oceanus Dwellings, Sobha Developers, SRK Constructions, etc. The table below
lists few of the select builders and developers having active presence in the city:
Table 3.1: Select List of Builders and Developers Active in Thrissur City
Alukkas Builders and Developers

Athira Builders

Cheloor Property Development Project

Forms Builders and Developers

Inland Properties and Developers

Oceanus Dwellings

Maya Realtors

Skyline Builders

Penark Builders & Developers

Sobha Developers

SRK Builders

Unidesign Builders & Developers

Thrissur Builders

Hilife Builders

Plama Builders

Precious Homes & Projects

Orriana Builders & Developers

Source: Real Estate Market Research and Analysis; Jones Lang LaSalle; April 2013

3.2

RESIDENTIAL SUB-SECTOR
The residential real estate market
in the city witnessed high growth
over the past four years in terms of
capital values and development
activities. All the prime residential
areas of the city witnessed
significant development activity in
this period. The development
typology also witnessed a change
from the homestead and plotted
developments
to
villa
and
apartment typology.
The demand is primarily attributed from those generated from the Non-Resident Keralites
(NRK) and to a significant extent, from the business class segment of the city. The
absorption rate in the CBD is 70% while the average absorption rate in the city and
outskirts is 59%. The absorption rates do not vary widely across the micro-markets in the
city. The proposed developments such as the IT/ITES initiatives, Medicity, the industrial
estates, etc. are expected to contribute to the further growth in the residential real estate
sector of the city.
Development Zones in City
The residential development zones in the city are delineated based on the distance and
intensity of development at these locations. The residential areas under CBD are primarily
comprises locations near the Swaraj Round, Patturaickal, MG Road, College Road, North
Bus Stand Area, Shornur Road, Korpath Lane, etc. Locations under the SBD include
Ayyanthole, Chembukavu, Chungam, Kottapuram, Saktan Stand premises, locations near
Mission Hospital, Palakkad Road, Poothole, Poonkunnam etc. The Peripheral Business
District (PBD) locations include residential developments along Athani, Muthuvara,
Puzhakkal, Puthurkkara, Cheroor, Koorkencherry, Kuriachira, Kanamkulangara,
Koorkencherry, Kuttenalloor, Mannuthy (Off Bye-pass), Mundur, Amalagiri, Ollur, Perigavu,
Puranettukara, Viyyur, Thirur and Mulankunnathukavu, etc.

Development Advisory Services for Proposed Mixed-Use Development Project on

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Final Report
- 25 -

The most predominant residential typologies in the city are apartments and villas. The most
active residential market in the city is the SBD followed by the PBD. About 48% of the
residential developments are coming up in the SBD areas. The higher land values of the
CBD and the lack of developable spaces are the major reason for shift of residential
developments to the SBD and PBD locations. Further, good connectivity between the SBD
& CBD and availability of good social infrastructure facilities in the SBD is conducive for
residential development.
The Project Site is located at Punkunnam and forms part of the SBD.
The table in the next page presents brief description of various residential development
zones in the city. Map showing the different residential development zones in the city is
presented in the subsequent page.

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Final Report
- 26 -

Table 3.2: Description of Key Residential Development Zones in Thrissur City

Zone

Important Locations

Profile

Central Business
District (CBD)

Swaraj Round, Patturaickal,

MG Road, College Road,
North Bus Stand area, Shornur
Road, Korpath Lane, etc.

It is a high density area. These areas are well developed with very few new supply. The new supply is mostly from
redevelopment of old residential or commercial buildings into modern apartments. Majority of the proposed and
launched projects target luxury and upper mid segment population with average number of 35 units per project. These
areas consists of primarily business class, upper middle-income and higher-income population. Population with high
disposable income and propensity to spend on family shopping and entertainment is high

Secondary
Business District
(SBD)

Ayyanthole, Chembukavu,
Chungam, Kottapuram, Saktan
Stand premises, locations near
Mission Hospital, Palakkad
Road, Poothole, Poonkunnam
etc.

The growth of the micro-market especially in Ayyanthole, Poonkunnam, Chungam, Poothole and Kottapuram is driven
by the Civil Station, proximity to the CBD and excellent connectivity. Most upper-middle class buyers who wish to stay
closer to the city CBD and work place prefer the SBD area, areas between CBD and Civil Station. Micro-market like
Chembukavu, Saktan Stand and area surrounding the Mission Hospital are driving factors for real estate development
and these area are densely populated. The project size variation across the micro-market is in the range of 80-100
units. As a whole, SBD has access to well-developed social and physical infrastructure facilities and the land rates are
lower than that of CBD.
These locations house the service class and middle-income group households. It is a densely populated area with a
mix of residential bungalows and new apartment developments. Population with moderately high disposable income
and propensity to spend is high.

Peripheral
Business District
(PBD)

Athani, Muthuvara, Puzhakkal,

Puthurkkara, Cheroor,
Koorkencherry, Kuriachira,
Kanamkulangara,
Koorkencherry, Kuttenalloor,
Mannuthy (Off Byepass),
Mundur, Amalagiri, Ollur,
Perigavu, Puranettukara,
Viyyur, Thirur and
Mulankunnathukavu etc.

The proximity to Industrial estates & plots, improved infrastructure facilities has triggered the development in this
region. In the case of residential development, most of them here are plotted development followed by small numbers
of Residential Apartments and Villa developments. The western parts especially the areas like Puthurkkara, Puzhakkal,
Peramangalam are the upcoming residential areas with the residing population consisting of a mix of medium and low
disposable income groups. Even though the areas are industrial in nature, prominent developers like Sobha, Oceanus
and Plama etc have their presence in these areas with projects under various stages of construction. This is mainly
due to excellent connectivity (Thrissur Kuttippuram Road, Shornur Highway) and availability of social infrastructure
facilities. The project size variation across the micro-market is in the range of 60-100 units.
Middle and lower middle income population.

Source: Real Estate Market Research and Analysis; Jones Lang LaSalle; April 2013

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Map 3.2: Residential Development Zones in Thrissur City

Source: Real Estate Market Research and Analysis; Jones Lang LaSalle; April 2013

Final Report
- 27 -

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Final Report
- 28 -

Market Status on Supply and Absorption

Approximately 10% of the total residential development in the city concentrated in the CBD
locations such as Patturaickal, part of Shornur Road, MG Road, College Road, etc. About
328 residential units are under various stages of construction in the CBD area. In the case
SBD and PBD, PBD has significant number of units under various stage of construction.
This is mainly due to lower land cost and good accessibility acting as an USP for many
graded projects. There are about 1,650 units in SBD and 1420 units in PBD, which are
under various stages of construction.
3-BHK apartments are most popular format in the city followed by 2-BHK. 1-BHK format
has few takers and such units are primarily located in close proximity to the CBD or near to
economic hubs. A 3-BHK flat in the city may cost between INR 2.8 to 8.5 million while a 2BHK flat may cost between INR 2.5 to 7.0 million. The table below presents average
capital values for residential space in prime locations of the city.
Table 3.3: Average Capital Value of Residential Space in Prime Locations of Thrissur City
Major Locations

Avg. Capital Value

(INR per sq. ft.)

Major Locations

Avg. Capital Value

(INR per sq. ft.)

Patturaickal

2,600

Kuriachira

2,900

Punkunnam

3,050

West Fort

3,000

Ayyanthole

2,910

Kuttenallor

2,600

Chembukavu

2,500

Poothole

2,775

Source: Real Estate Market Research and Analysis; Jones Lang LaSalle; April 2013

Predominant housing typology has been the homestead type and the plotted
developments till recent years. The plotted development is usually developed by one-time
builders who sub divide the plot and provide the road layout and basic infrastructure
facilities. There exists no Grade-A plotted developments in the city at present. Villas are
the most desired typology. However, the higher costs of villas have resulted in preference
for apartments, which in turn resulted in the growth of apartment projects in Thrissur.
Apartments constitute 68% of the residential supply of the city. The land cost and
construction cost is higher for villa developments. Cost for a typical 3-BHK Villa in the city
varies from INR 3.0-6.6 million and the prices may go as high INR 12.5 million for Grade-A
developments. This is one of the major reasons for the shift towards apartment preference
in the recent years in the city. Villas are mainly confined to suburbs and peripheral
locations of the city. Especially northern quadrant of the city constitutes about 50% of the
total villa projects.
Following are the major findings from the residential sector analysis for the city:

Residential activity is high in suburbs and peripheral areas due to good connectivity,
availability of social infrastructure facilities, low land cost and also availability of land
parcel for development.
Majority of the Grade-A developments in the city are located at the PBD areas such as
Ayyanthole, Puzhakkal and Kuttenalloor. Whereas the Grade-B & C projects are at the
SBD locations. CBD is having low residential supply owing to the high land values and
the unavailability of land parcels. This indicates the spread of high spending population
to the outskirts propelling growth of real estate activity to such locations.
Demand - residential property market caters to both end users and investors with
average demand of about 300-500 units per annum. Demand for mid-segment from
end users while demand for premium segment from NRKs.
Supply - city residential market is dominated by the Grade-B developers contributing to
43 percent of the total supply followed by Grade-A & C of 971 & 663 units. But in-terms

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Final Report
- 29 -

of projects local developers especially the Grade-C developers contribute to 40 percent

followed by Grade-B & A 37 & 23 percent.
Typology - 53% of supply comprises of 3-BHK units followed by 2-BHK units of 37%, 4BHK units constitute 10% of the total supply.
Residential rental market scenario in the city has increased significantly due to
exponential increase in land value across the city along with development of
new/emerging economic drivers.
Good demand for gated community projects with full-fledged amenities and pricing in
such projects ranges from INR 6 -15 million per unit.
Integrated residential townships concept is still nascent as compared to other cities.
Sobha City is only Graded integrated residential project in the city. Amenities offered
by the high end projects include clubhouse, swimming pool, landscaped parks,
childrens play area, CCTVs, security etc. Emphasis is high on specifications and
materials used, integrated amenities and support facilities

Market Trends - Apartment Typology

Supply: About 48% of total apartment supply is in the SBD locations with northwest and
southern areas taking the largest share of 35% and 18% respectively. CBD accounts for
about 13% of the total apartment supply and PBD locations accounts for approximately 39%
of the total supply. The share of southeast and western SBD is only 6% each. The
northeastern SBD are in the early stages of development as majority of the land parcel is
owned by the various government departments. Grade-A & B developments constitute 61%
of the overall supply.
Absorption: The average absorption in the city for all the graded projects (Villas &
Apartment) is around 62%. Grade-B & C projects had the highest absorption of 75% and
55% respectively depending upon the location and whereas the Grade-A projects has an
average absorption of 60%. There is a marginal increase in the absorption figures from
2011 to 2012 due to weak economic scenario across the country.
Pricing: The average price range of apartments constituting all grades5 (Grade A, B & C) in
the CBD range between INR 2,600-5,000 per sq. ft. SBD locations like Punkunnam,
Ayyanthole, Poothole, etc. have prices ranging between INR 2,400-3,700 per sq. ft.
whereas the prices in PBD areas range between INR 2,320- 3,200 per sq. ft. The table
below presents historic trends in capital values of residential apartments in the city across
different micro-markets.
Table 3.4: Historic Trends in Residential Apartment Capital Values in Select Micro-Markets
in Thrissur City
Micro-Markets

Residential Apartment Capital Values - Average Price (INR per sq. ft.)
2008

2009

2010

2011

2012

1Q 2013

CBD (Swaraj Round)

2,950

2,800

3,150

3,250

3,800

4,200

Patturaickal

2,200

2,150

2,500

2,600

3,200

3,500

Punkunnam

2,700

2,600

2,950

3,050

3,100

3,250

Ayyanthole

2,750

2,750

2,860

2,910

3,200

3,300

Chembukavu

1,900

2,000

2,300

2,500

2,900

3,200

Kuriachira

2,650

2,565

2,780

2,900

3,200

3,250

West Fort

2,400

2,320

2,700

3,000

3,300

3,400

Kuttenallor

2,250

2,100

2,500

2,600

2,800

3,100

Classification of Grade is based on the Scale of Development, Development Profile (includes market penetration), Specification and
Quality of Construction

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Micro-Markets

Final Report
- 30 -

Residential Apartment Capital Values - Average Price (INR per sq. ft.)
2008

Poothole

2009

2,475

2010

2,350

2011

2,700

2012

2,775

1Q 2013

2,850

3,000

Source: Real Estate Market Research and Analysis; Jones Lang LaSalle; April 2013

Typology and Size: Most common typologies of the apartments are 2-BHK and 3-BHK
units. Typically, sizes of 2-BHK units range between 741-1,200 sq. ft. while that of 3-BHK
units range between 1,200-1,500 sq. ft. Sizes of 4-BHK units range between 1,800-2,250
sq. ft. while that of 5-BHK units range between 2,200-2,500 sq. ft.
Charges: Other than sales price on saleable / super built-up area, developers also charge
other charges as described in the table below.
Table 3.5: Other Charges Levied for Residential Developments in Thrissur
Parking Charges

Parking charges varies from INR 100,000 to INR 250,000

Club Membership Charges

Ranges from INR 50,000 to INR 100,000

(Note: Very few prominent graded developers charge club
membership charges)

Floor Rise

Varies from INR 10 per sq. ft. to INR 30 per sq. ft. of every 3
floors. Further a similar premium is sometimes attached based on
the apartment facing.

Source: Real Estate Market Research and Analysis; Jones Lang LaSalle; April 2013

Table 3.6: Prominent Graded Residential Projects in Thrissur City

Project Name

Developer

Location

Status of Project

Units
(Nos.)

Pricing (INR
per sq. ft.)

Alukkas
Bhavanam

Alukkas Builders

Olari

Completed

107

3,400

Alukkas Parpidam

Alukkas Builders

Chiyyaram

Completed

3,100

Alukkas Castle

Alukkas Builders

Ayyanthole

Completed

110

3,200

Sobha City

Sobha
Developers

Along SH-69

Under Construction

648

4,500

Alukkas Nest

Alukkas Builders

Off Swaraj Round

Under Construction

36

5,000

Krishna

Unidesign

Close
Chembukavu

Under Construction

11

4,000

Chandra

Unidesign

Post Office Road

Under Construction

Axis

Skyline

East fort Junction

Under Construction

Infinity

Skyline

East fort Junction

Under Construction

44

3,500

Trichur Builders

Swetha
Residency

Close to Swaraj
Round

Under Construction

35

3,500

Trichur Builders

Meghna
Residency

S.T. Nagar

Under Construction

35

3,600

Trichur Builders

Indus Avenue

Viyyur

Under Construction

77

--

Chelakottukara

Kalyan Habitat

Jubilee
Hospital

Under Construction

66

3,100

to

Mission

2,750
3,400

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Project Name

Developer

Location

Final Report
- 31 -

Status of Project

Units
(Nos.)

Pricing (INR
per sq. ft.)

Aashiyana

Devdatham
Builders

North Bus Station

Under Construction

55

3,900

Lisieux

Sun Rays

Oralikara

Under Construction

30

3,200

Swapanpuri
Apartment

Local Player

Chembukkav

Under Construction

21

3,500

Namasthe Legacy

Namasthe
Kerala

Chembukkav

Under Construction

12

4,000

Source: Real Estate Market Research and Analysis; Jones Lang LaSalle; April 2013

Profile of Residential Buyers in Thrissur

NRI segment is the key buyer segment of residential apartments in the city. The nonresident Keralites who have been residing abroad for a long while buy homes for the
purpose of investment and sometime for self-use on a later date. The table below indicates
the profile of buyers for few established developers in the city.
Table 3.7: Profile of Buyers in Thrissur for Residential Apartment Projects
Developer

Investors

End users

NRI Sales

Skyline Builders

10%

12%

78%

Alukkas Builders

12%

13%

75%

Cheloor Property

10%

10%

65%

Penark Builders

25%

20%

55%

Thrissur Builders

35%

35%

30%

Unidesign

8%

12%

80%

Source: Real Estate Market Research and Analysis; Jones Lang LaSalle; April 2013

The buyers of luxury residential developments are primarily the NRIs who work in the
shipping industry and oil companies in Middle East. The domestic buyers who purchase
luxury residential developments are primarily the traders, large scale agriculturists, doctors,
industrialists and other high earning professionals. The NRI demand has reduced in the
recent past due to the economic downtrends in the Middle East. However, market
perceives the same as a temporary phenomenon.

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Map 3.3: Key Residential Development Projects in Thrissur City

Source: Real Estate Market Research and Analysis; Jones Lang LaSalle; April 2013

Final Report
- 32 -

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3.3

Final Report
- 33 -

CORPORATE / OFFICE (COMMERCIAL) SUB-SECTOR

The commercial / office sub-sector in the city is fairly small. There are not many graded
commercial / office spaces in the city. The major proportion of commercial space is located
in the CBD, along the high streets occupying the upper floors while the lower floors are
used for retail use. The principal driver of commercial space in the city is primarily the
financial institutions followed by tour & travel agencies, training institutes and the
government sector. The Banking & Financial sector has all chosen to have their offices in
the CBD. However, there few proposals under consideration by few developers to target
ITES sector, which is one of the upcoming economic driver for the city.
As stated above, the commercial / office spaces are primarily concentrated in the Swaraj
Round followed by the radial roads such as MO Road, MG Road, Kuruppam Road, etc.
Offices occupy the upper floors of the buildings in these pockets with retail on lower floors.
New commercial establishments are upcoming along the Guruvayoor Road, Shornur Road,
etc. The prime areas of commercial activities in the city comprises of Swaraj Round, MG
Road, MO Road, West Fort Junction, Veliyannur, Punkunnam, Kuruppam Road, Shornur
Road, Thrissur Kuttippuram Road (SH-69) and Ayyanthole, etc.
Present Scenario
Swaraj Round forms part of the CBD of the city. The round encircles the Thekkinkadu
Maidan, which is approximately 65 acres in area. The road forming the perimeter of the
Round forms the Swaraj Round and it is approximately 2.5 km length. The round is
dominated with Grade B and Grade C standalone commercial and retail developments.
The Banking, Financial Services & Insurance (BFSI) forms the most prominent sub-sector
followed by the offices of educational institutions, software training institutions, travel
agents, etc. Few of the government offices are also located in the Round. Some of the
select major commercial establishments in the Round are listed in the table below.
Table 3.8: Major Commercial Establishments in Swaraj Round, Thrissur
State Bank of Travancore

CADD Centre

KSFE

Western Union

Vijaya Bank

Central Bank of India

Axis Bank

Dhanalakshmi Bank

South Indian Bank

Life Insurance Corporation

Federal Bank

Catholic Syrian Bank

HCL

Corporation Bank

Bank of Baroda

Indian Bank

Dharmmodayam Company

State Bank of India

Source: Real Estate Market Research and Analysis; Jones Lang LaSalle; April 2013

There are several buildings constructed by the PWD for the Corporation and these are
leased to companies on a long term basis. Existing office space locations have been facing
problems like traffic congestion, parking problems, etc. Majority of the buildings have
smaller floor plates and are provided with air handling units. Commercial / office spaces
are concentrated along three roads, viz. MG Road, Shornur Road and Palace Road. Brief
description of developments along these roads are given below:

MG Road connects West Fort Junction and Swaraj Round. This stretch houses
primarily educational institutions imparting software training and BFSI offices. The

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Final Report
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tenants include IndusInd Bank, Dewan Housing Finance, HDFC Standard Life, Image
Multimedia, Kerala Infotech, Catholic Syrian Bank, etc.

Shornur Road connecting Swaraj Round and Patturaickal Junction is another

important stretch for commercial development. Patturaickal Junction houses majority of
the government offices. The major tenants in the stretch include ICICI Bank, Asianet
Communications, Trichur Cooperative College, Office of Vigilance and Anti-Corruption
Bureau, Fisheries Office, etc.

Palace Road is a major retail destination. However, few offices are also located in this
stretch. The major tenants here include State Bank of India, New India Assurance Co.
Ltd, UTI Mutual Fund, etc. Department of Education offices, Kerala Sahitya Academy,
Town Hall, etc. are also present in this stretch. College Road connects Swaraj Round
and East Fort. This stretch houses the district hospital, Catholic Syrian Bank,
Cooperative Bank, travel agencies, office of DMO, etc. Municipal Office Road and
Kuruppan Road stretch houses primarily the corporation office. Apart from these, the
nodes such as East Fort, West Fort, Patturaickal, etc. houses few commercial
developments.

The table below provides an insight into the prevailing lease rentals in select prime
locations for commercial space in the city.
Table 3.9: Lease Rentals for Commercial Space in Prime Locations within Thrissur City
Location

Quality of Space

Lease Rentals (INR per sq. ft.

per/month)

Capital Values (INR per

sq. ft.)

Swaraj Round

Grade B/C

70-150

6500 - 20,000

MG Road

Grade B/C

50 - 80

5000 - 8500

Kuruppam Road

Grade B/C

50 - 55

5000 - 6000

Shornur Road

Grade B/C

40 - 50

4000 - 5000

College Road

Grade B/C

30 - 50

3000 - 5000

Patturaickal

Grade B/C

20 - 50

2000 - 5000

West Fort

Grade B/C

50 - 70

5000 - 7200

East Fort

Grade B/C

25 - 65

2500 - 6500

Punkunnam

Grade B/C

25 - 65

2500 - 6500

Ayyanthole

Grade B/C

30- 60

3800 - 6500

Source: Real Estate Market Research and Analysis; Jones Lang LaSalle; April 2013

New Developments
The new developments along these stretches are the high street format with retail on
ground floors and commercial developments on the upper floors. Graded developments
under commercial / office space in the city are yet to come up.
There are several IT park projects under proposal. Brief description of these proposed
developments are given below.

Info Park: Kerala IT Department is developing an IT park on 30 acres of land at Koratty

and the Infrastructure development work has already commenced. The proposed
allotment is for 42 acres but at present possession of only 30 acres of land has been
provided. The Park is situated very close to the NH-47. The first set of IT Buildings of
approximately 40,000 sq. ft. area with plug and play facilities is ready to occupy and

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3.4

Final Report
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companies have started setting-up operations here. Next phase of development is

likely to have additional IT office space of about 30,000 sq. ft.
KINFRA is working on a Knowledge Park in the city. The proposed Knowledge Park
will be dedicated to knowledge based industries such as biotechnology,
nanotechnology, microelectronics, information technology and information technology
enabled services. While KINFRA will provide the land for the proposed Knowledge
Park on a long-term lease, the actual development of the Park will be left to the
developer. This is located on 40 acres of land in Puzhakkalpadam.
Elite Group of Companies has proposed to build an IT/ITES Park at Puthukkad, on a
25-acre SEZ campus with a total capital outlay of INR 5.20 billion. Project is expected
to be implemented in four phases spanning six years. Out of the total land area, 57
percent will be used for processing and support services, 11% for non-processing and
32% for open landscape and internal roads. The expected total built up area is 2.2
million sq. ft. and of which 1.8 million sq. ft. will be for processing area. The IT Park is
expected to generate 15,000 direct employments at full capacity on single shift basis.
Al Yusafi Group, a Kuwait based group has purchased 60 acres of land along NH-47
for developing a hi-tech factory for production of home appliances. An International
Exhibition Centre, and a super-specialty cardiac hospital is also proposed in the same
campus. Adlux Properties have plans for developing an IT park also as part of the
development.

ORGANIZED RETAIL SUB-SECTOR

The recent retail revolution in the country has been penetrating to smaller cities as well.
The rising income levels, changing attitudes towards spending, increasing consumerism
resulted in large-scale growth of retail activity in smaller cities including in Thrissur. Like
several emerging cities in India, retail activity in the city are of traditional format,
concentrated in the city center and expanded along major corridors. As on date, the city is
yet to have an operation retail mall of large-scale while a retail mall of about 320,000 sq. ft.
size is under construction as part of the integrated development in Sobha City Project.
Key Development Zones
The city has high-street retail format with activities along Swaraj Round, and the radial
roads close from the Round, which forms part of the prime CBD. Below are the major
brands in each retail category:

Apparel: Kalyan Silks, Pulimootil Silks, Sree Lakshmy Silks, Sobha Wedding Galaxy,
Van Heusen, Scullers, Arrow, Indigo Nation, Koutons, Raymons, Lee, Levis and United
Colour of Benetton
F&B: Dominos, Chicking, US Pizza, AFC,, Baskin Robbins, etc.
Supermarkets: Varkeys, Reliance Super, Elite, City Super Market
Hypermarket: Big Bazaar

The major retail format in the city is the traditional and modern streets, and the major retail
clusters are given in the table below.
Table 3.10: Overview of Retail Market in Select Zones of Thrissur City
Sl.

Zones

Major Locations

Central (CBD)

Swaraj Round and the radial roads

North

Patturaickal, Shornur Road and its extension

East

East Fort, College Road, Palace Road and its extension

West

West Fort, MG Road and its extension

South

MO Road and Kuruppam Road and their extension

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Source: Real Estate Market Research and Analysis; Jones Lang LaSalle; April 2013

The table below presents characteristics of the select high-street retail markets in the City.
Table 3.11: Overview of High-street Retail Market in Thrissur City
Market

Type

Brands Present

Remarks

Swaraj Round

Apparel, Jewellery,
Accessories,
Footwear, Casuals,
Supermarket

Kalyan Silks, Kalyan

Jewellers, Alukkas jewellers,
Malabar Gold, Josco, Bata,
Varkeys, Elite, City Super
Market, Titan, Citizen and
Louis Philippe, etc.

Prime high street of the city

Patturaickal

Supermarkets,
Apparels, Electronics
Goods

Big Bazaar, Next,

Sreelakshmi Silks, etc.

Emerging high street of the

city

East Fort,
College Road
stretch

F&B, Supermarket

Chicking, US Pizza, Baskin

Robbins, Reliance Super, etc.

Good catchment of the

student population

Palace Road

Jewellery, Apparels,
etc.

Josco, Kalyan, Pulimootil Silk

House, Central book stall, etc.

Most favoured retail area for

jewellery and apparel.

MG Road

Apparel, footwear,
electronics, etc

Puma, Woodland, Bata,

Arrow, Woodlands, LG
Shoppe, DC Books, etc.

One of the developing retail

stretches

Kuruppam Road

Apparel, Hardwares,
Electrical Goods, etc.

Van Heusen, Fridgehouse,

Raymonds, etc.

One of the major retail high

streets after Swaraj Round

Source: Real Estate Market Research and Analysis; Jones Lang LaSalle; April 2013

Market Trends
The table below presents an insight into the prevailing lease rentals and capital values in
select prime locations in the city for retail space.
Table 3.12: Lease Rentals and Capital Values for Retail Space in Thrissur City
Location

Quality of Space

Lease Rentals (INR per

sq. ft. per/month)

Capital Values (INR per

sq. ft.)

Swaraj Round

Grade B/C

75 - 120

7500 - 12000

MG Road

Grade B/C

60 - 80

6000 - 8000

Kuruppam Road

Grade B/C

60 - 80

6000 - 8000

Shornur Road

Grade B/C

College Road

Grade B/C

50 - 70

5000 - 7000

Patturaickal

Grade B/C

30 - 60

3000 - 6000

West Fort

Grade B/C

50 - 80

5000 - 8000

East Fort

Grade B/C

25 - 40

2500 - 4000

40 - 60

4000 - 6000

Source: Real Estate Market Research and Analysis; Jones Lang LaSalle; April 2013

The retail market in CBD is dominated by large format jewellery and local branded
apparels such as Kalyan Silks, Sreelakshmi Silks, Sobha Wedding Galaxy, etc. Very few
stand-alone fine dining restaurants exist in the CBD. The map in the following page
indicates the major retail stretches in the city.

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Map 3.4: Map Showing Major Retail Corridors of Thrissur City

Source: Real Estate Market Research and Analysis; Jones Lang LaSalle; April 2013

Final Report
- 37 -

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Final Report
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The major corridors witnessing retail developments are Shornur Road, Guruvayoor Road
and Palakkad Road (College Road). The developments are notable towards the Northwest,
North and East directions. The other areas are primarily residential and the supermarket
and neighborhood shopping formats of retail outlets are found in these residential pockets.
Shornur Road has formats such as Big Bazaar, Next, Sreelakshmy Silks, etc. Guruvayoor
Road houses vehicle showrooms and food outlets primarily. The Palakkad Road is a major
destination of F&B outlets and super market formats such as Reliance Trends. The road
connecting to Ayyanthole also houses retail formats. This location is an emerging prime
residential area owing to the presence of the civil station and other government offices.
Most of the retail shops are own premises. Most of the retail shops have areas ranging
between 2,000 sq. ft. to 6,000 sq. ft. Some of the shops like Kalyan Collections, Modern
Dress World, Kalyan Jewellers, Pulimootil Silk House, Sree Lakshmi Silks, Chungath
Jewellery and Kalyan Silks have area between 10,000-20,000 sq. ft. Big Bazaar, Center
Point and City Center have 40,000-45,000 sq. ft. while EMKE Silks Kundungalur Shornur
Highway has a shop of size 160,000 sq. ft.
The table below presents lease rentals for select retail shops in the city.
Table 3.13: Lease Rentals for Retail Space in Prime Locations in Thrissur City
Location

Lease Rentals (INR per

sq. ft. per month)

High Rental Paying Tenant/ Complex

Swaraj Round

60-150

Kalyan Silk

MG Road

50-100

Kuruppam Road

60- 80

Louis Philippe

Shornur Road

40- 65

Van Heusen Store in Trichur Trade

Center

College Road

50- 80

--

Patturaickal

45- 80

West Fort

50 -100

--

East Fort

35- 75

--

Ayyanthole Road

45-60

--

SH-69 (Thrissur Kuttipuram Road)

45-100

--

Near Vadakke Bus Stand

80-120

Oralikkara

20-35

--

Ashwini Junction

45-80

--

Poothole

40-90

Pent Park Apartment

Ikkanda Warrier Road, or Malayala

Manorama Road

40-90

CJ Complex

High Road

40-60

Fabis Arcade

--

Jeva Tower

Vijas Infra Project

Source: Real Estate Market Research and Analysis; Jones Lang LaSalle; April 2013

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Upcoming Retail Mall

Sobha City Mall is the only mall, which is under construction in the city. This mall is located
at a distance of about 1 km from the Project Site, along SH-69. This is part of the
integrated development covering an area of about 55 acres

The mall is coming up 4.7 acres, with

gross leasable area of about 320,000 sq.
ft. The mall is proposed to have
Hypermart (2 Nos.), Departmental Store
(2 Nos.), Mini Anchor (Electronics &
Home Furnishing), Vanilla/ Line Stores
(40 Nos.), Kiosks, 7 Screen Multiplex,
Restaurants & Food Court, etc.
Anchor space is likely to be retailned by
Sobha Group while the developer is in
active discussion with PVR Cinemas for
multiplex. Several shops have been sold
with price ranging from INR 4,500-9,800
per sq. ft.

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The broad breakup of the leasable area is presented in the table below:
Table 3.14: Leasable Area Details in Sobha City Mall in Thrissur City
Format

Type of Store

Floors

Remarks

Large

Hypermart

Ground &
First

1 store spread across two floors with size ranging from

35,000- 40,000 sq. ft. in total

Department
Store

Ground &
Second

This format accounts for about 2 in no., size of this format

ranges from 15,000- 20,000 sq. ft.

Multiplex

Second

The multiplex is planned with 7 screens The size ranges from

45,000-50,000 sq. ft.

Electronics

Ground

Size of this format ranges from 12,000-14,000 sq. ft.

Food Court

Second

Size of this format ranges from 10,000-12,000 sq. ft.

Home
Furnishing

Second

Size of this format ranges from 12,000-14,000 sq. ft.

Line
Stores/
Vanilla

Ground,
First
&
Second

Vanilla format accounts for about 40 in nos. with size ranging

from 700-1000 sq. ft.
Presently majority of the line sores are sold out at capital
values in the range of INR 4,500-9,800 per sq. ft.

Medium

Small

Source: Real Estate Market Research and Analysis; Jones Lang LaSalle; April 2013

3.5

HOSPITALITY SUB-SECTOR
With the growing importance of tourism sector in the state as well as in the city, hospitality
sub-sector is one of the key drivers for real estate development in the city. The city
functions mostly as a transit point for domestic and foreign tourists. Thrissur has a high
incidence of domestic tourists, which can be contributed to the presence of major religious
destinations.
The hotels in the city cater to both business travelers and tourists. The occupancy rates
vary from 60-80%. Few business class hotels in the CBD have occupancy rates as high as
87% throughout the year. The city witnesses deficiency in accommodation during the peak
tourist season, typically, during April-May when the Pooram Festival is held in the city.
Stock & Supply
The total supply of standard hotel rooms in the city is 758 (excluding tourist home, home
stay & lodges). There are several 3-star category hotels in the city. Present supply
indicates that 63% of the inventory is under 3-Star category. The table below provides
inventory of prominent hotels in the city.
Table 3.15: Inventory of Prominent Hotels in Thrissur City
Hotel Name

Location

Keys
(Nos.)

Average Daily Room Rate (INR)

Min

Max

Suite

The River Retreat

Palace Road

24

2,775

5,200

6200- 11330

LULU International
Convention Center

Off SH-69

35

--

4000

7000

Casino Hotels

T B Road

51

1,700

3,200

6,500

Joys Palace

Saktan Tampuran Nagar

58

3,400

4,400

8,500

Hotel Niya Regency

Olarikkara

30

2,200

2,700

5,000

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Hotel Name

Location

Keys
(Nos.)

Final Report
- 41 -

Average Daily Room Rate (INR)

Min

Max

Suite

Ashoka Inn

Sakthan Thampuran Nagar

34

--

2,900

5,500

Trichur Towers Hotel

T B Road

25

1,500

1,900

4,900

Sidaartha Regency

Kokkalai Junction

25

850

1,350

--

Hotel Pooram International

Kuruppam Road

62

2,200

4,000

5,000

Central Hotel

Chembukavu

10

--

1,700

2,200

Hotel Elite International

Chembottil Lane

72

1,500

1,900

3,000

Dass Continental

Sakthan Nagar

27

2,300

2,800

4,000

Mannapuram Hotels

Kuruppam Road

76

1,050

1,550

2,300

Hotel Seafort

Rly. Station Road

47

1,800

2,160

--

Ammu Regency

Marar Road

27

1,400

1,600

2,200

Hotel Pearl Regency

Warriam Lane

35

1,500

1,850

2,600

Hotel Merlin International

Poothole Road

21

1,450

1,700

2,300

Hotel Luciya Palace

Kuruppam Road

37

1,700

2,700

--

Elite International

Chembottil Lane

72

1,500

2,800

3,000

Source: Real Estate Market Research and Analysis; Jones Lang LaSalle; April 2013

A 5-Star category hotel is proposed to be developed at Puzhackal in the Lulu International

Convention Centre. Another hotel is proposed is near the NH Bypass in the land holding of
Emfar Group.
Average Daily Room Rate & Occupancy
The Average Daily Room Rate (ADR) across the starred category hotels in the city is INR
2,562 per day on an average and the average occupancy is about 65%.

3.6

MICE SUB-SECTOR

3.6.1 GENERAL SECTOR TRENDS

MICE tourism is a comparatively new
format of tourism which has emerged
with the increase in conventions and
exhibitions along with the maturity of the
tourism sector. There is no unified
definition for MICE Tourism at present.
This includes various Meetings (M),
Conventions (C), Incentive travels (I),
Exhibitions and Fairs (E), Festivals,
anniversary celebrations and other
activities. The enormous economic and
social effects of the sector to the
community resulted in the sector being
known as: the pearl of tourism crown.
Sources estimate that the MICE market
is worth around USD 280 billion a year
worldwide. It is understood that at least

Market share for Meetings, 2008

5% 3%

22%

52%

18%
Europe

America (North & South)

Asia

Africa

Australasia/Pacific

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50 million trips are taken each year for MICE purposes. The worldwide market share for
meetings by continent is indicated in the chart on the right hand side. A major pie of the
meetings happens in Europe followed by Asia and America. Till the early nineties, North
America and Europe had dominated the conventions and conference markets. The US still
holds the top spot for the highest number of meetings as a single country destination.
However, the market has moved towards newer destinations in Asia and Oceania in the
recent past. Europe accounts for the maximum share with over half of all international
meetings. However, there is a constant decrease in share of Europe, while Asia and
Oceania are gaining. The top ten countries in the descending order are USA, France,
Singapore, Japan, Spain, Germany, Netherlands, Italy, Belgium and UK. India is ranked
27th with approximately over 250 meetings6.
Medical sciences remain a popular area for international meetings accounting for about 33%
of all meetings. The other top sectors are Science (13%), Technology (7%), Industry (7%)
and Social Sciences (4%). As far as seasonality is concerned, the industry worldwide
shows seasonality, with September, October and November being the busiest periods for
convention tourism.
Meetings and conventions offer high value addition in terms of delegate expenditure and
also serve the dual purpose of promoting international relations. It is a highly profitable
form of tourism as most delegates are subsidized and tend to use costly accommodation
and often travel before and after the event. In addition, by organizing during the offseasonal months, one can remove the seasonality effects of leisure tourism. Thus
undesirable social effects of seasonal tourism such as migration, temporary employment
and job instability can be avoided. These events can also be termed as knowledge
tourism as they promote the exchange of ideas, technology and commercial knowledge
that contribute to an intangible but important source of value add to the economy of the
host country. The MICE sector also helps increase local government and private sector
investments that result in improvements in the general hospitality environment of the
destination country.
The sector and trends can be summed up as follows.
MICE tourism offers countries the opportunity to grow tourism particularly out of
season.
The destination image of a country is of particular value in the development of MICE
tourism.
The new consumer trends are of particular importance in the development of this
format of tourism.
The education of expert human resources to manage MICE development is a key
priority.

3.6.2 MICE MARKET - INDIAS GLOBAL POSITION

Background
Tourism has been marketed under various segments (sports, art, leisure, heritage, agro,
medical, aboriginal tribe, culture, etc.) with the MICE (Meetings, Incentives, Conventions
and Events) segment being one of the fastest growing segments in the tourism market that
brings in together individuals for business purposes.
The inbound MICE segment in India is growing at 15-20% per annum. It is estimated that
the total national and international MICE meetings market all over the world is in excess of
USD 280 billion. According to industry estimates, the India contributes to almost 3-4% of
the global earnings through MICE activities.

Source: International Meeting Statistics, Union of International Association

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India ranks 27th in the Global Meetings market and 7th in the Asia Pacific region by the
number of international conventions hosted each year 7 . Most of the international
convention centers in Asia Pacific region are integrated facilities with accommodation,
entertainment, shopping along with the convention, exhibition and business center facilities.
The table below presents market share of MICE in Asia Pacific:
Table 3.16: Market Share of International Conventions and Meetings in Asia Pacific
Sl.
No.

Country

Market Share in
Asia Pacific

1.

Japan

20 Percent

2.

Australia

19 Percent

3.

South Korea

14 Percent

4.

China & Hong

Kong

11 Percent

5.

Singapore

11 Percent

6.

Thailand

10 Percent

7.

India

9 Percent

8.

Malaysia

6 Percent

Market Share of International

Conventions and Meetings in Asia
Pacific

Thailand
10%

India Malaysia
6%
9%

Singapore
11%
China &
Hong
Kong
11%

Japan
20%

Australia
19%
South
Korea
14%

Source: Union of International Associations Press

According to the Union of International Associations Press (UIAP), India share of the
market for hosting international conventions is increasing at the rate of 9% per annum for
past two years. India is going the global way and MICE is fast becoming a major part of its
travel and promotional budgets. In the Indian context, incentives is at present the largest
component of MICE but in a maturing market, it is only a matter of time before the entire
gamut of MICE activities are undertaken by the Indian corporate world.
Economic Advantage
MICE segment is a major revenue spinner. As per the assessment conducted by the UIAP,
every Rupee spent on any MICE event, it is providing eight times the turnover from the
supporting facilities (travel, F&B, accommodation, etc.). Every MICE traveler spends
almost double of what a normal tourist spends during his short stay. The incentives
program is one of the biggest revenue spinners. This has always brought in higher
percentage of Foreign Tourist Arrival (FTA) in Indian market, which constitutes maximum
percentage of business visitors. However in the last 18 months MICE tourism, which
accounts for 5-10% of the total revenue of tour operators, has taken the maximum hit
during this economic downturn. Companies in the fast moving consumer goods, insurance
and entertainment sectors normally offer the highest number of MICE trips to employees
and sales dealers. Companies had stopped MICE trips for their employees and for the
sales dealers; they had postponed the trips over few months for the global recession to
settle. A few companies, including insurance firms, which offered incentive program
facilities, had entirely stopped for their external sales associates, according to most travel
companies. However, 2013 is being viewed optimistically, and the industry is hoping this
lucrative sector will bounce back.
Pan India understanding of conventions and exhibitions is required to realize the market
potential for the same in India. With the tourism sector also, focusing on increasing the
market share through MICE sector, it becomes essential to realize the business presently
in operation and also that is realizable in the coming years. The Government of India has
recognized the emerging importance of MICE, and has announced several schemes to
7

Source: International Meeting Statistics, Union of International Association

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Final Report
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increase the capacity of existing infrastructure, in addition to setting up four new world
class mega convention centres in New Delhi, Mumbai, Jaipur and Goa. That apart, the
MoT, in order to boost MICE tourism further, has extended its benefits under the Market
Development Assistance (MDA) scheme to the active members of ICPB, towards the
bidding process for international conferences /conventions. The scheme would bring in
more MICE business to the country. Under this scheme, associations would be given
financial support on winning the bid or for obtaining second and third positions in the
bidding process
Infrastructure
India provides an impressive combination of conference support facilities like venue, travel,
accommodation, technology, event organizers, recreation, etc. to hold a successful
conference / exhibition. To mention a few; Vigyan Bhawan, Pragathi Maidan, India habitat
Center (IHC), India International center (IIC) etc. in New Delhi, Center Point, Renaissance
Hotel, Convention Center in Mumbai, HITEX and HICC in Hyderabad, CTC in Chennai, the
BM Birla Science and Technology Centre in Jaipur, the Jaypee Hotels & International
Convention Centre, Agra Convention Centre and the Cochin Convention Centre, etc.
together with facilities in the business hotels and resorts at various centers in the country.
A large number of convention centers are available in India with a seating capacity of up to
1,500 persons. Most MICE events are normally up to 1000 capacity for which there are
number of options across India. India also has vast geographical expanse with varied
climate features that is an advantage for organizing events throughout the year in the
location that has suitable climate during the time. The larger congregations are very few
and normally held in HICC (5000 capacity), Mumbai grounds, Pragathi Maidan-Delhi,
Palace Grounds in Bangalore etc. With all the facility presently existing it is still realized
that there is lack of organized area as in HICC, Hyderabad with world class facilities that
can attract the MICE events multi-fold. This is also attributed to the less marketing
strategies adopted by MoT. The same is being addressed through MDA scheme as
discussed above.
The estimated number of hotel rooms in India with respect to the demand is found to be
lower by almost 30,000 rooms as per MoT analysis. The number of budget hotel rooms are
less as compared to assessed and this is also cited to be a reason for slow off take of
MICE segment in India. In order to address this issue Reserve Bank of India (RBI) has delinked credit for hotel projects from commercial real estate, thereby enabling hotel projects
to avail credit at relaxed norms and reduced interest rates. In addition, the External
Commercial Borrowing (ECB) norms have been relaxed by Ministry of Finance to solve the
problem of liquidity being faced by the hotel industry due to economic slowdown.
The air connectivity which is also important criteria for MICE industry performance has
been addressed by GoI. Many metro and 35 non-metro airports were taken up under up
gradation program and most of them are either completed or reaching completion (source:
AAI)

3.6.3 THE INDIAN CONVENTION INDUSTRY

Revenue Spinner Effect
MICE market in India can be realized in numbers and the revenues earned through the
table below:
Table 3.17: Market Performance of MICE Market in India
Sl. No.
1.

Event Type
Conventions

No. of Events
1,600

Revenue per Year (INR in Million)

620.10

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Sl. No.

Event Type

2.

Meetings

3.

Exhibitions

No. of Events

Total

Final Report
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Revenue per Year (INR in Million)

44,300

1605.70

300

5600.00

46,200

7825.80

Source: Study by Feedback Ventures and IDFC on MICE Market in India

The international events that have, over the years, developed an institutionalized character
include International Security Exhibition, Aahar (Food Expo), Printpack India, Delhi
International Shoe Fair, Tex-Styles India, the India International Trade Fair, Prakash
(Lighting Exhibition) at Pragati Maidan , the India International Leather Fair (at Chennai)
and International Leather Goods Fair (at Calcutta). These exhibitions enjoy tremendous
industry support, both from the point of view of participation and visitor turnout from India
and abroad.
Locations
Important conference centers in the country are at New Delhi, Mumbai, Agra, Bangalore,
Chennai, Cochin, Goa, Hyderabad, Jaipur & Kolkata. Some important hotel chains like the
Taj Group, ITC-Welcome Group, the Oberoi's, Meridien Hotels, and Marriott Hotels, etc.
also have excellent conference facilities and obtain a large share of revenues through
MICE operations of industries. The table below summarizes availability of facilities for
MICE events in some of the select major cities India.
Table 3.18: Availability of Facilities for MICE Events in Major Cities in India
Sl.

Name of the City

Availability of Facilities for MICE Events

1.

Delhi (New Delhi)

India's premier conference venue is still the Vigyan Bhavan, which is mostly
used for government functions or international events. After extensive
renovation, Vigyan Bhavan facilities are now on par with some of the best in the
world. With a capacity of 2,400 in theater-style, it is the largest facility in India.
To give a further boost to convention business, the government has decided to
set two international convention centers in the country with an investment of
USD 222 million. Most of India's convention facilities are located in the
country's five-star hotels. The MICE industry in Delhi is sized more INR 2.00
billion. It is the key MICE destination in India presently and contributes nearly
30 percent of the industry in India.

2.

Mumbai

There are more than 72 star (3 star and above) category hotels which have
convention / banquet halls. These hotels and stand alone convention centers
have a combined capacity of 194 banquet halls with an average number of 2.75
halls in each center / hotel.
In terms of number of banquets and convention halls, Hotel Oberoi tops the
chart with 12 halls having a total of 330,268 sq. ft. of built up space with a total
capacity of 2245 persons. The largest convention hall in this hotel has a
capacity of 1,000 sq. ft. with minimum revenue earning potential of INR
243,000 per day. The total revenue potential for all the banquet halls in the
Hotel Oberoi ranges between INR 1.26 million to INR 1.95 million per day

3.

Pune

There are more than 40 star (3 star and above) category hotels in Pune with
more than 12 hotels having convention / banquet halls. These hotels and stand
alone convention centers have a combined capacity of 41 banquet halls with an
average number of 3.7 halls in each center / hotel.
In terms of number of banquets and convention halls, Hotel Le Meridian tops
the chart with 7 halls with a total capacity of 1,500 persons. Government of
Maharashtra has given a go ahead to establish this International Exhibition
Center at Moshi, District Pune on an area of 170 hectares with most advanced

Development Advisory Services for Proposed Mixed-Use Development Project on

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Sl.

Name of the City

Final Report
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Availability of Facilities for MICE Events

technological features.

4.

Kolkata

There are not many convention centres in Kolkata. The major one operating is
at Science City, which is a complex for promoting science and technology to
the general public. The convention centre, which is part of this complex, is
rented out to public and is popular for national and international conventions.
However the maximum capacity the main hall can hold is 2000 persons.
Apart from this, all the major 5 star hotels have facilities for conventions and
conferencing ITC Shonar Bangla hotel, Hyatt Regency, Grand Oberoi, Taj
Bengal and The Park. In terms of number of banquets and convention halls,
ITC Shonar Bangla has nearly 9 halls with varying capacity of 24-700 and
Oberoi Grand can take max. capacity of 1000 persons.

5.

Hyderabad

There are nearly 27 star category hotels in Hyderabad with in-house

convention facilities. Only Mariott Hotel (Viceroy) and Novotel have convention
facilities that can handle crowd up to 2,000 plus persons. All others cater to
smaller conventions / meetings in Hyderabad (b/w 150-500 maximum, average
- 350 persons). The average rentals per day for the convention facilities
attached to hotel is approximately INR 450-500 per person per day

6.

Chennai

There are nearly 25 star (3 star and above) category hotels, which have
convention / banquet halls. Only 3 hotels have convention/meeting halls that
can hold capacity of 1,000. The others can hold only about 300 and below as
maximum capacity. Although there are more than 25 hotels with an average of
3 halls per hotel there is no space for large conventions/meetings.

Following table provides an insight into the most sought convention facilities in India:
Table 3.19: Most Sought Convention Facilities in India
Sl.
No.

Facility

Land
Area (in
Acres)

Exhibition Hall

Convention Facility and Seating

Capacity

1.

Pragati
Maidan

149

62,650 sq. m. of covered

exhibition space in 17 halls
besides 10,000 sq. m of open
display

Small conference facilities for 200

persons only. Outdoor seating &
theaters present for large
capacities

2.

Chennai
Trade Center

25

More than 19,238 sq. m.

1500 persons

3.

HITEX,
Hyderabad

100

32,825 sq. m.

1350 persons

4.

HICC
Hyderabad

15

NA

5000 persons

BIEC
Bangalore

35

45,000 sq. m. (2 halls of 10,000

sq. m. each and one hall of
20,000 sq. m. with mezzanine
of 5,000 sq. m.)

1500, 750. 200 and 120 capacity

halls

Delhi leads the MICE segment in India with the advantage of being the capital city and best
infrastructure facilities. Mumbai, the financial capital has around six large grounds/
exhibition spaces and most entertainment, religious, economic events are held here.
Hyderabad is fast emerging MICE center in India since the opening of HICC in 2006. The
number of exhibitions/conventions held in this center has been growing multifold. HICC
hosted ICCA meet in 2010 which was one of the large global meets of ICCA. Chennai

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Trade Center is the most sought out exhibition complex in South India due to lack of such
facilities and also owing to the lower costs compared to HITEX-HICC in Hyderabad.
Conventions by Category and Days
There are more than 45 categories listed under industries that conduct exhibitions, seminar,
conventions in India, etc. However, some of the leading industry segments for exhibitions
in India are Information Technology, FMCG, beauty and fashion, hardware & machinery,
environment, printing and packaging, medical/pharma, gifts, textile and garments, real
estate, furniture and interiors, media, engineering etc.
Considering textile industry alone, nearly 27 Industry trade fairs, more than 10 prominent
fairs and exhibitions have taken place at various locations in India during last year.
In the agriculture related MICE, there were a little above 24 trade fairs and shows
conducted during 2006 in India and this has grown to over 75 events for the year 2012.
This accounts to increase by more than 200% in the last 6-7 years. Some of the prominent
events area Food Tech India, Aahar, Krishi Expo, International Animal Industry Expo, Agri
& Flora Tech, International Flora Expo, Agri-Tech India, Grain Tech India, etc. Most events
are held in Mumbai, Bangalore, Coimbatore and Delhi.
There are various institutional and industry related bodies like Confederation of Indian
Industries (CII), Federation of Indian Chamber of Commerce and Industries (FICCI),
NASSCOM, India Trade Promotion Organization (ITPO), etc. that conduct various fairs,
conferences, training programmes throughout the year. The CII alone organizes many
programs each year.

3.6.4 SUMMARY FINDINGS AND OBSERVATIONS

India is looking at promoting MICE sector through various developments (infrastructure and
convention facilities)

MICE events are held in many multi fold categories pertaining to various industries;
MoT is focusing on marketing India as a destination for MICE events. There is also
recommendation of setting up an independent body to monitor MICE events in India.
MoT has extended its benefits under the Market Development Assistance (MDA)
scheme to the active members of ICPB to promote MICE sector.
Delhi leads in terms of no. of events conducted -an advantage of being national capital
HICC is slowly emerging as important place for most International events in India due
to the advanced technology, choice of vast single congregation area in combination
with business centers, hotel and F&B
South India is gaining importance in MICE events since the operation of HITEX and
HICC. When Hyderabad, Chennai and Bangalore are considered together they seem
take the maximum share of business of MICE events in India; and
Most events are held in convention facilities existing in five star hotels in all cities due
to lack of international scale of facilities and the right ambience for national /
international conventions.
The Ministry of Tourism has decided to consider proposals for grant of financial
assistance up to INR 50 million for construction of one convention centre at any wellconnected and accessible tourist destination in each State/UT for promotion of MICE
Tourism.

3.6.5 CONVENTION INDUSTRY IN KERALA

Kerala is fast emerging as a MICE destination. With a fine mlange of culture and natural
settings, Kerala also offers state-of-the-art technology for business meetings, conferences
and exhibitions to match global standards. The study conducted by Tata Consultancy
Services on the tourism sector of Kerala explored the opportunities of developing MICE

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tourism in Kerala on a cultural plank. The study indicated that while Kerala is not a
significant business destination, its calm and serene environs could make it an attractive
meeting venue for corporates. This would also introduce business and professional
decision makers to the State, which in turn can open gates for investments in other areas.
Hotel and resorts focusing on foreign tourists can increase occupancy during the lean April
- September season, by focussing on meetings and seminars market, through appropriate
packages as may be necessary. Hotels/resorts with traditional architecture and ambience
can position themselves to offer business tourism packages incorporating cultural
performances, local cuisine, ayurvedic rejuvenation, etc. that could lend uniqueness and
special image to the product.
Kerala is located in the south western corner of the country and thus is far removed from
the main business centres. However, neighbouring states of Karnataka, Tamil Nadu and
Andhra Pradesh are well ahead into industrialisation, and could provide the potential to tap
business tourism. This opportunity includes business meetings, small conferences, inhouse training, all combined with holidays in exotic locations in the State. Further, Kerala is
also in the international crossroads between the Middle East/Europe and Far East/
Australia. Kerala has air links with the Middle East and Singapore. This advantage could
be utilised to attract the international community for business tourism to the State. Though
seemingly far-fetched at present, this could be developed gradually with a clear vision and
concerted efforts. This would essentially require upgradation of relevant infrastructure communication facilities in hotels & resorts, innovative packages for combining business
with pleasure, brand building and marketing of Kerala as a business/conference
destination.
Kochi, the business hub of the State has made certain foray into the MICE tourism with the
operation of Le Meridian Hotel. Subsequently, during the year 2006, the State entered into
global arena for MICE activities with the operation of Lulu International Convention Center
in Thrissur, which caters to the growing needs of a convention facility of international
standards. Lulu ICC and Garden Hotels is a venture of renowned business magnate and
global entrepreneur Padmasree M. A. Yusuff Ali, who heads the EMKE Group and Lulu
Chain of Hypermarkets
Lulu ICC is benefitted by good connectivity of Thrissur by road, rail and airport. Nearest
airport is the Cochin International Airport, which is located at a distance of about 55 km
from the city. Cochin International Airport handles both domestic and international flights
and is the largest Airport in Kerala. Majority of the connections are domestic although a
fairly significant number of flights connect destinations in the Gulf and Middle East catering
to the Kerala Diaspora. A second airport run by the Navy also operates in the city. There
are two main railway stations. Kochi ranks among Indias major seaports due to its being a
safe harbour. It also operates passenger ships to Colombo and Lakshadweep.
At present, convention and conference options in the state are quite limited, and are
catered to a limited extent by the premium hotels in Kochi and Lulu ICC in Thrissur. The Le
Meridian Hotel in Kochi offers moderate conference facilities, with capacities of 270-1350
sq. m. (with 500-2000 delegates in theatre seating option) across 9 halls. It has also some
smaller spaces, which can be availed for smaller meetings. Taj Malabars convention
facilities include a conference hall with the capacity to cater to 300 plus delegates. An
initiative for an international trade and convention centre is in place by Zoom Developers.
This is being developed in a 40 acre land parcel and is a part of the Multi Product SEZ at
Kalamassery, developed by KINFRA. The work is at present on hold. Piling is completed
for the structure.

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Final Report
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3.6.6 LULU INTERNATIONAL CONVENTION CENTER

Location
Lulu International Convention Center was built in 2006 to cater to the growing needs of a
convention facility of international standards in the city and the state. Lulu ICC and Garden
Hotels is a venture of renowned business magnate and global entrepreneur Padmasree M.
A. Yusuff Ali, who heads the EMKE Group and Lulu Chain of Hypermarkets
The Lulu ICC is located at Thrissur, approximately 4 km from the CBD area in about 15
acres of land. The centre is located off the State Highway (SH-39) connecting Thrissur and
Guruvayoor at Puzhackal. The map below indicates the location of the Lulu ICC with
respect to city CBD.

The table below presents distance of major land arks from the ICC along with approximate
travel time by road.
Table 3.20: Distance from Major Landmarks from Lulu ICC
Landmark

Approximate Distance (km)

Approximate Travel Time (Minutes)

Thrissur Railway Station

10

KSRTC Bus Stand

10

Cochin International Airport

55

70

Kozhikode Airport

80

100

Source: Real Estate Market Research and Analysis; Jones Lang LaSalle; April 2013

The Lulu ICC is located at Puzhackal and is located 100 m off the SH-39 connecting
Thrissur and Gurvuvayoor. This State Highway is one of the fast developing corridors of
the city. The immediate neighborhood comprises of Sobha City, an integrated development
project, automobile showrooms, and few industrial & commercial developments.
Meeting Facilities
The centrally air-conditioned Main Hall, Lulu Grand can comfortably seat 2,200 pax, and is
one the best venue for conventions, conferences, product launches, mega shows,
weddings, etc. in State. This hall is equipped with most modern audio-visual facilities.

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The air-conditioned Banquet Hall, Ruby can take up to 1,100 pax (theatre style) while the
non-air-conditioned Banquet Hall, Lotus can accommodate 1,000 pax. For a typical Kerala
style feast (sadya), the halls can seat up to 1,500 people in one go.
The Mini-conference Safina I, II, III is an air-conditioned and carpeted hall, which can be
segregated into 3 different halls, each equipped with state-of-the-art audio-visual facilities.
This hall can seat 20 to 450 pax and provides a very aesthetic ambience for meetings,
seminars, conferences, corporate events, etc.
Accommodation and Restaurant
Apart from the conference halls, Lulu has a Lulu Garden Hotel which has 30 executive
rooms and 5 suites, all air-conditioned and of double occupancy category. The hotel also
has a well-equipped health club and kids play park for recreation. The present tariff
structure is as follows:
Table 3.21: Average Daily Room Rate for Hotel Rooms at Lulu ICC
Room Category

Average Daily Room Rate (INR)

Executive Rooms

4,000 plus Taxes

Royal Suite Room

6,000 plus Taxes

Presidential Suite

7,000 plus Taxes

Source: Real Estate Market Research and Analysis; Jones Lang LaSalle; April 2013

Clay Oven Restaurant offers a global menu and international cuisines.

Some of the photographs of the meeting and convention facilities at the Lulu ICC is given
in the following page.

The Grand Hall

The Lulu ICC

Clay Oven Restaurant

View of the Stage Show

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Exhibitions at Lulu ICC

Final Report
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Marriage Function at Lulu ICC

Details of Lulu ICC

The table below presents some of the details of the Lulu ICC
Table 3.22: Details of Lulu International Convention Centre
Name

Lulu International Convention Center

Location

Nandambakkam

Developer

EMKE Group

Operator

EMKE Group

Site Extent

15 Acres

Space
Design

Exhibition hall

Hall 1 (Grand Lulu Hall): 10,630 sq. ft.

Hall 2 (Ruby Hall): 7,100 sq. ft.
Hall 3 (Lotus Hall): 7100 sq. ft.
Hall 4 (Saffina): 1583 sq. ft.

Convention
Center

14,000 sq. ft. column free space (140 feet x 100 feet)

Open Exhibition
Area

15,390 sq. ft. column free space (171 feet x 90 feet)

Proposed Use

Exhibitions, Trade Fairs, Conventions, Private Weddings/ Parties

Surrounding Land Use

Commercial & Residential

Project Completion Date

Operational since 2006

Cost of Hiring the Space

Hall 1 (Grand Lulu Hall): Without F&B - INR 300,000 plus taxes and
with F&B at INR 850 per pax plus applicable taxes 5% tax per head
Hall 2 (Ruby Hall): Without F&B - INR 150,000 plus taxes and with
F&B at INR 850 per pax plus applicable taxes
Hall 3 (Lotus Hall): Without F&B - INR 125,000 plus taxes and with
F&B at INR 850 per pax plus applicable taxes
Hall 4 (Saffina): Without F&B - INR 75,000 plus taxes and with F&B at
INR 850 per pax plus applicable taxes

Source: Real Estate Market Research and Analysis; Jones Lang LaSalle; April 2013

The table below presents some of the technical facilities of the Lulu ICC
Table 3.23: Technical Details of Lulu International Convention Centre
Exhibition Hall/ Gallery
(Column Free Space)

Hall 1 (Grand Lulu Hall): 10,630 sq. ft.

Hall 2 (Ruby Hall): 7,100 sq. ft.

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Hall 3 (Lotus Hall): 7100 sq. ft.

Hall 4 (Saffina): 1583 sq. ft.

Conference Spaces &

Banquet Hall

Range from 1,583 sq. ft. to 14,000 sq. ft.; Capacity range from 50 persons to
2,200 persons

Accommodation

Lulu Garden Hotel with 35 keys in premises. Tie ups with other hotels in the
city.

Car Parking

1,800 cars , no parking fee is charged

Service pits

Service trenches for power, water supply and drain line, telephone and
compressed air.

Drains

Drains provided within the hall

Public / Other Facilities

Key Features

The special and unique facilities available in the Convention Center are a)
Foldable sliding partition; b) Helipad; c) The theatrical lighting system; d)
Fire protections with sprinklers and smoke detectors; e) Modern Audio and
video system; f) Meeting rooms; g) Banquet hall; h) Protocol and VIP
lounge; i) Business center; j) Information Booth; k) Parking facilities; l) Wi-Fi
connectivity; m) Service pits for connectivity; and n) Outdoor area

Information kiosk/booths
Protocol and service room
Fire safety, Ambulance & First aid services (on request)
Banking facilities (on request)

Source: Real Estate Market Research and Analysis; Jones Lang LaSalle; April 2013

Sources of Business
The major events that happen in the Lulu ICC are undoubtedly marriage events. This is
followed by Medical. The banking and financial sector also conducts events regularly at the
convention centre. Other sectors include tourism, government, entertainment, pharma
sector, FMCG product launches, Bio-technology, etc. The chart below presents the
sectoral contribution of events and the scale of events happening in Lulu ICC.

Source: Lulu International Convention Center; April 2013

Lulu has plans to construct a 100 keys 5-star category hotel. The major occupants in their
hotel are those who come for conferencing. This is followed by Corporates and domestic

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Final Report
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travelers. Unlike Cochin, the peak season is during April which is the season of Thrissur
Poorams. All the convention spaces in Lulu are column free.
Conference Facility
The fees and details of the conference facilities available in Lulu ICC are as follows.
Table 3.24: Details of Conference Halls at Lulu International Convention Centre
Halls

ColumnFree Space
(Yes/No)

Area /
Size
(sq. ft.)

Capacity
(No. of
Persons)

Hall 1 (Grand Lulu

Hall)

Yes

14,000

2,000

Hall 2 (Ruby Hall)

Yes

10,630

Hall 3 (Lotus Hall)

Yes

Hall 4 (Saffina)

Yes

Monthly
Frequency
of Usage
(Average)

Charges
with F&B *
(INR excl.
Taxes)

Charges
without F&B
(INR excl.
Taxes)

10 days

850

300,000

1,500

15 days

850

150,000

7,100

750-900

15 days

850

125,000

1,583

50 - 500

17 days

850

75,000

* Includes Breakfast (INR 150), Lunch, Tea/Coffee and Snacks

Source: Lulu International Convention Center; April 2013

During off season, the duration of advance booking is 3 to 6 months while during season
time the duration is 9 to 12 months. There is no seasonal variation in prices for conference
facility. The banquet facility is provided in three of the halls.

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Final Report
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PROJECT SITE ANALYSIS AND DEVELOPMENT

CONTROL & REGULATIONS

4.1

DETAILS OF THE PROJECT SITE

The table below summarizes details of the Project Site.
Table 4.1: Details of the Project Site
DETAILS OF THE PROJECT SITE
Area

11.3 acres (492,224 sq. ft.). First phase of the development is envisaged over a
land area of about 4.46 acres (194,276 sq. ft.) comprising Retail Mall, Showroom
Space and Office Space.

Access

Thrissur Kuttippuram Main Road (SH-69)

Frontage

Approximately 36 m frontage along Thrissur Kuttippuram Main Road (SH-69)

Shape

Fairly regular in shape

Topography

The Project Site is proposed to be developed in phased manner. Land portion

earmarked for first phase development admeasures about 7.15 acres and is flat in
terrain, which is filled up to the road level. Land portion earmarked for second phase
development admeasures about 3.05 acres and is slightly undulated as the site
leveling is in process.

Contiguity

Project Site is contiguous in nature

Landuse

Categorized under Parambu land, with approval for commercial development

comprising Organized Retail Mall, Commercial Office Space, Showrooms, Hotel
and Convention Centre.
INFRASTRUCTURE

4.2

Power

Power supply exists within the Project Site.

Telecommunication

Telecommunication facility available on the Project Site at present.

Water Supply &

Sewerage

Water Supply exists in the Project Site in the form of conventional well. There is no
trunk infrastructure available for water supply and sewerage.

LOCATION OF THE PROJECT SITE

The Project Site located along Thrissur Kuttippuram Road (SH-69), measures an area of
approximately 11.3 acres (492,224 sq. ft.). The Project Site is located under the revenue
administration of Ayyanthole Village, Thrissur Taluk, Thrissur District, Kerala, categorized
under Parambu land, with approval for commercial development. First phase of the
development is envisaged over a land area of about 4.46 acres (194,276 sq. ft.) comprising
Retail Mall, Showroom Space and Office Space.
The Project Site is located in the northwestern quadrant of the city, in the close proximity of
about 1.5 km distance to Sobha City Project, which is under construction and to be
completed in the year 2014. Further, the excellent connectivity from SH-69 and the social
infrastructure facilities in the surroundings like Amala Medical College and Hospital, IES
Engineering College along the region has induced residential development in the region.
Moreover, Thrissur Kuttippuram Road is one of the growth corridors of the city.
Map showing the location of the Project Site with respect to other prominent locations in
the city is presented in the following page:

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Final Report
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Map 4.1: Location of Project Site

Source: Real Estate Market Research and Analysis; Jones Lang LaSalle; April 2013

Table below provides distances of the important locations / landmarks from the Project Site:
Table 4.2: Distances of the Project Site from Major Landmarks in the City
Location / Landmark

Distance from
Project Site (km)

Location / Landmark

Swaraj Round

3.5

Sobha City

West Fort

2.5

Punkunnam Junction

Paturaickal Junction
Thrissur
Station

Collectorate/

Thrissur Railway Station

2
Civil

3.5
3

Distance from
Project Site (km)
1.5
1

Amala Medical College

3.5

KSRTC Bus Stand

3.5

Cochin International Airport

55

Source: Real Estate Market Research and Analysis; Jones Lang LaSalle; April 2013

4.3

DESCRIPTION OF THE PROJECT SITE

The Project Site admeasures an area of approximately 11.3 acres with approval for
commercial development. First phase of the development is envisaged over a land area of
about 4.46 acres (194,276 sq. ft.) comprising Retail Mall, Showroom Space and Office
Space. The Project Site is irregular in shape and has a frontage of approximately 36 m on
SH-69. There is availability of power and water at the Project Site as it had an industrial
unit functioning earlier. The water availability is in the form of wells (otherwise called as
Water Recharge Well), which are 3 in nos.
Photographs in the following page present some of the features of the Project Site and its
surroundings.

Development Advisory Services for Proposed Mixed-Use Development Project on

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Views of the Project Site

Views of the Project Site

Views of Canal adjoining the Project Site along Eastern Side

Views of Existing Well at the Project Site

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Development Advisory Services for Proposed Mixed-Use Development Project on

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View of Approach Road (Toward Puzhakkal)

View of Approach Road (Toward Thrissur City)

View of Adjoining Property on Eastern Side (MD

Francis & Sons Furniture Showroom)

Gem Lights Showroom on the South of Project

Site

Frontage Along SH-69

Google representation showing the location of the Project Site and its surroundings is
given in the following page.

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

Map 4.2: Map on Location of the Project Site and its Surroundings

Source: Real Estate Market Research and Analysis; Jones Lang LaSalle; April 2013

Final Report
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Development Advisory Services for Proposed Mixed-Use Development Project on

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4.4

Final Report
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INFRASTRUCTURE DEVELOPMENT INITIATIVES NEAR THE PROJECT SITE

Augmentation of Thrissur Kuttippuram Main Road (SH-69): NHAI in association with PWD
and TMC, initiated the widening of Thrissur Kuttipuram Main Road (SH-69), which extends
to about 52.65 km stretch, covering areas like Thrissur, Choondal, Kunnamkulam,
Perumpilavu, Naduvattom, Edappal, Thavanoor and Thrikkanapuram (joins SH-17). This
will enhance regional connectivity especially with respect to Malabar Connectivity to
Coimbatore through Palakkad and will have significant impact on Thrissur City.
Proposed Bus Stand Near Punkunnam: At present, the city has four bus stations namely, a)
Shaktan Thampuran (Private Bus Stand); b) Municipal Bus Stand; c) KSRTC Bus Stand
(Veliyannur); and d) Vadakke Stand (Northern Bus Stand). In order to reduce the traffic
congestion within the city CBD and also the movement of heavy vehicles, the KSRTC has
proposed to shift the Vadakke Stand to Punkunnam along Thrissur Kuttipuram Main Road
(SH-69). This proposed development is still in planning stage. However, operation of the
same will have significant positive impact on the proposed development as it is located in
the close proximity (less than 500 m) and also connects the other neighboring urban
centers.

4.5

SWOT ANALYSIS FOR THE PROJECT SITE

SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis has been done for
the Project Site based on location, infrastructure, linkages, frontage and potential usage
and is presented below:
Table 4.3: SWOT Analysis for the Project Site
Strengths

4.6

Project Site is part of SBD of the city and is located along one of
the fast growing corridors of the city.
Project Site enjoys good connectivity from SH-69 and is
proposed to be widened to four-lane.
Surrounding developments in the catchment attracts significant
floating population of SEC A & B with high disposable income.
Opportunities
Project Site catchment has good social and physical
infrastructure
Proposed surrounding developments such as KINFRA Park,
Puzhakkal River Tourism Project, would improve the profile of
the area.

Weaknesses

Project Site has less visibility

from SH-69 due to narrow
frontage of 36 m.
Project Site is irregular in
shape
Threats
Sobha City Mall, which is
located within 1 km, will be a
major competition for the
proposed development.

Proposed KSRTC Bus Terminal is located at a distance of about

1 km from the proposed development.

APPLICABLE DEVELOPMENT CONTROLS AND REGULATIONS

The Project Site forms part of the administrative jurisdiction of Thrissur Municipal
Corporation. The applicable byelaws and Development control Regulations (DCR) are
outlined in the Kerala Municipality Building Rules, 1999.
Based on the area statement shared by the Client for the first phase, the Project Site,
proposed development is envisaged over a land area of about 4.46 acres (194,276 sq. ft.)
comprising Retail Mall, Showroom Space and Office Space. The table in the following page
summarizes the break-up of area statement.

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Table 4.4: Break-Up of Area Statement for First Phase Development on the Project Site
All Area in sq. m.

Sl.
No.

Level / Floor

Floor Plate
excl.
Parking

Service
Area

Passage
Area

Built-Up
Area
within FAR

Common
Area

Component-Wise Break-Up
Shops

Multiplex

F&B

Showrooms

Floor Plate
incl.
Parking

Office

A.

Retail Mall

1.

Basement 2

520.51

178.62

341.89

520.51

7,407.45

2.

Basement 1

442.35

149.86

292.49

442.35

7,358.04

3.

Ground Floor

1,687.71

277.04

113.34

1,297.33

1,295.26

392.45

6,481.46

4.

First Floor

6,037.18

8.63

132.70

5,895.85

2,501.38

3,535.80

6,037.18

5.

Second Floor

5,597.23

8.63

132.70

5,455.90

1,740.37

3,856.86

5,597.23

6.

Third Floor

5,424.76

8.63

129.83

5,286.30

1,654.39

3,770.37

5,424.76

7.

Fourth Floor

5,460.82

122.67

129.83

5,208.32

1,691.43

2,368.36

706.96

694.07

5,460.82

8.

Fifth Floor

5,494.00

314.30

283.95

4,895.75

634.89

784.00

953.22

3,121.89

5,494.00

9.

Terrace Floor

1,556.96

833.74

26.40

696.82

1,306.48

194.16

56.32

1,556.96

32,221.52

1,902.12

948.75

29,370.65

11,787.06

14,902.00

1,716.50

3,815.96

50,817.90

Sub Total (A)

B.

Showroom
Space and
Office

1.

Basement 2

374.06

215.55

158.51

374.06

5,763.39

2.

Basement 1

322.49

215.55

106.94

322.49

5,736.96

3.

Ground Floor

344.39

145.18

199.21

344.39

4,751.84

4.

First Floor

2,290.85

80.86

31.18

2,178.81

382.45

1,908.40

2,290.85

5.

Second Floor

2,787.51

80.86

2,706.65

320.11

2,467.40

2,787.51

6.

Third Floor

2,787.51

80.86

2,706.65

320.11

2,467.40

2,787.51

7.

Fourth Floor

2,787.51

80.86

2,706.65

320.11

2,467.40

2,787.51

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Sl.
No.

Level / Floor

Final Report
- 61 -

Floor Plate
excl.
Parking

Service
Area

Passage
Area

Built-Up
Area
within FAR

Common
Area

Component-Wise Break-Up
Shops

Multiplex

F&B

Showrooms

Floor Plate
incl.
Parking

Office

8.

Fifth Floor

2,787.51

80.86

2,706.65

320.11

9.

Sixth Floor

1,762.89

103.52

1,659.37

423.51

1,339.38

1,762.89

10.

Seventh Floor

1,757.23

103.52

1,653.71

405.53

1,351.70

1,757.23

11.

Eighth Floor

1,757.23

103.52

1,653.71

405.53

1,351.70

1,757.23

12.

Ninth Floor

1,757.23

103.52

1,653.71

405.53

1,351.70

1,757.23

13.

Tenth Floor

1,156.47

439.74

103.52

613.21

917.30

239.17

1,156.47

14.

Terrace Floor

127.20

127.20

127.20

127.20

22,800.08

1,420.32

548.78

20,830.98

5,388.43

11,778.00

5,633.65

38,011.33

55,021.60

3,322.44

1,497.53

50,201.63

17,175.49

14,902.00

1,716.50

3,815.96

11,778.00

5,633.65

88,829.23

Sub Total (B)

Grand Total

2,467.40

2,787.51

Source: As given by the Client

Based on the above area statement, FAR area is about 50,201.63 sq. m., which translates into 540,366 sq. ft., which translates into utilized FAR
of 2.78 on land extent of 4.46 acres (i.e. 194,276 sq. ft.)

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Final Report
- 62 -

EVALUATION OF DEVELOPMENT MIX OF THE

PROJECT

5.1

PROPOSED DEVELOPMENT MIX ON THE PROJECT SITE

As stated earlier, the Client intends to develop a mixed-use development mix on the
Project Site, comprising of a shopping mall, office and showroom spaces, hotel as well as
residential apartments with the construction taking place in phases (in 3 phases). Tentative
phasing of the development is given below:

Phase I: Proposed to have a Retail Mall of 316,143 sq. ft. of built-up area within FAR
and Commercial Block containing 224,223 sq. ft. of built-up area within FAR for both
showroom space & commercial / office space on warm shell basis. The entire Phase I
is expected to be spread over 4.46 acres land extent;

Phase II: Proposed to have a Hotel Block and Convention Center Block. The Phase II
development is expected to be spread over 6.84 acres land extent; and

Phase III: This phase of development is expected to be only residential apartment.

Land extent is yet to be finalized for the same.

Based on the area statement shared by the Client for the first phase, the Project Site,
proposed development is envisaged over a land area of about 4.46 acres (194,276 sq. ft.)
comprising Retail Mall, Showroom Space and Office Space. The table below summarizes
the break-up of area statement.
Table 5.1: Break-Up of Area Statement for First Phase Development on the Project Site
Sl.
No.

Uses

Built-Up Area within FAR

1.

Retail Mall with

Multiplex

29,370.65

316,143

Planned from First Floor to Sixth Floor as a

Standalone Building with a small portion on
the Ground Floor and Terrace Floors also.

2.

Showroom

13,385.73

144,083

Planned from First Floor to Fifth Floor

3.

Office

7,445.25

80,140

Total

50,201.63

540,366

(sq. m.)

Description

(sq. ft.)

Planned from Sixth Floor to Tenth Floor above

the Showroom Space

Source: As given by the Client

Based on the above area statement, FAR area is about 50,201.63 sq. m., which translates
into 540,366 sq. ft., which translates into utilized FAR of 2.78 on land extent of 4.46 acres
(i.e. 194,276 sq. ft.). Total built-up area including service areas, common areas, parking,
etc. works out to 956,150 sq. ft.
While components proposed under Phase I is dealt in detail in the subsequent chapters for
their market feasibility and financial feasibility, the table below provides market feasibility
and profitability of all the components proposed under all three phases based on the
macro-market assessment, considering various uses/activities proposed as part of the
overall integrated development in medium- & long-term (in all 3 phases), inter-dependency,
value add in positioning and key critical success factors for development of such
use/activity.

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5.2

Final Report
- 63 -

MARKET FEASIBILITY MATRIX FOR OVERALL DEVELOPMENT

Following are the components proposed as part of the integrated mixed-use development
on the Project Site under three different phases:

Organized retail sub-sector (mall format incl. showroom space);

Commercial / office sub-sector;
Hospitality sub-sector;
MICE sub-sector; and
Residential Apartments.

Detailed macro-market assessment of the above sub-sectors is presented in the Chapter 3

of this report. The analysis covered market trends, demand-supply scenario, pricing and
other related aspects. All the above sub-sectors were analyzed in detail for their market
feasibility & profitability considering the various uses/activities proposed as part of the
overall integrated development in medium- & long-term (in all 3 phases), inter-dependency,
value add in positioning and key critical success factors for development of such
use/activity. The table in the following page summarizes outcome of the sector assessment
and recommendations on sectors and activities proposed to be considered as part of the
overall integrated mixed-use development on the Project Site under three different phases.

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Final Report
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Table 5.2: Summary Sector Assessment and Recommended Development Mix for Project Site under Different Phases
Sl.
No
.

Project
Components /
Sectors

Summary Sector Assessment and Outcome

1.

Organized
Retail
(Mall
Format
incl.
Showrooms)

2.

Commercial /
Corporate
/
Office Space

3.

Hospitality

Positioning - Size to act as a city-level mall with gross built-up area of about
470,000 sq. ft.
Competition - Lesser penetration of mall format in the city and enjoys competitive
advantage
Inter-dependency - Integrated mixed-use development on the Project Site offers
inter-dependency for retail mall more specifically from Phase II and Phase III
components
Demand drivers - Demand from the city in general and micro-market in particular.
Captive demand potential from Phase II and Phase III components
Positioning driven - complement hotel, MICE and residential development

Market
Feasibility

Profitabilit
y

Recommendation for
Final Development Mix

YES

Critical success factor - Securing an anchor tenant occupying 20-25% of total

office inventory
Formats - Higher demand for small format office space (2,000-5,000 sq. ft.)
Demand driver - BFSI occupiers. Larger reliance on relocation / expansion
demand from existing occupiers in the city
Demand catalysts - hotel and MICE components proposed under Phase II
Positioning driven - complement hotel and MICE. Residential development under
Phase III can be marketed under walk to work concept

Recommended for
development after
securing anchor
OR consider as
part of Phase II

Demand drivers - Demand from the city in general due to business and tourism
potential
Inter-dependency - Integrated mixed-use development on the Project Site offers
inter-dependency for hotel component more specifically from retail mall, office and
Convention Center
Demand catalysts - office and MICE components proposed under Phase I & II
Captive demand - Fully occupied office space and operational Convention Center
offers sizeable captive demand
Positioning - Operator formats/brands complement other uses

YES

YES

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Sl.
No
.

Project
Components /
Sectors

Summary Sector Assessment and Outcome

4.

MICE
Convention
Center

5.

Residential
Apartment

INDEX

Final Report
- 65 -

Market
Feasibility

Positioning - Play role of an anchor - high multiplier factor for the integrated
development
Capital intensive - profitable as a package of activities, which can capitalize
multiplier factor
Inter-dependency - Integrated mixed-use development on the Project Site offers
inter-dependency for Convention Center more specifically from retail mall, office
and hotel
Competition - Lulu Convention Center will be a direct competition to the proposed
development
Positioning - This component makes the proposed development as fully integrated
development with walk to work concept
Competition - will have edge over other standalone developments due to
integrated nature of the overall development
Inter-dependency - Retail mall and Convention Center (for social events) will be
significantly benefitted from the residential development
Demand drivers - Demand from the city in general and micro-market in particular.
Competitive edge due to integrated nature of overall development
Positioning driven - complement retail, office and Convention Center

FAVORABLE

MODERATE

NON-FAVORABLE

Profitabilit
y

Recommendation for
Final Development Mix

YES
Recommended for
further evaluation
on profitability
before
commencing
Phase II
development

YES

NEEDS FURTHER EVALUATION

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Final Report
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Based on the above matrix, key observations on the development mix are summarized
below:

Proposed components like organized retail (mall format incl. showrooms), hospitality
and residential apartment demonstrates favorable market feasibility & profitability;

Convention Center offers moderate market feasibility due to the direct competition from
Lulu Convention center while the profitability need to be evaluated on a later date due
to high capital expenditure and potential negative impact on revenue due to
competition; and

Commercial / office space leasing will be a challenge as market is yet to develop to

absorb high volumes. Rental market also needs improvement. Critical success factor
for commercial / office space to succeed is securing an anchor tenant. Failing to secure
an anchor, it is recommended to evaluate the feasibility for development under Phase
II.

Detailed assessment for components proposed under Phase I development comprising

Retail Mall incl. Showroom Space and Commercial / Office Space is presented in the
subsequent chapters.

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Final Report
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CATCHMENT DELINEATION AND MICROMARKET ASSESSMENT

6.1

BACKGROUND
The Project Site and developments in its neighborhood (micro-market) have been
assessed to understand its demography, socio-economic profile, affordability, housing
characteristics, social infrastructure, available amenities, existing commercial & residential
developments, leisure & entertainment facilities, city level infrastructure initiatives, which
will have their impact on the development at the Project Site. Further, the existing real
estate scenario has been captured to analyze the prevailing needs and demands for such
developments in the near future. Also, this analysis would help in determining the potential
opportunities which are available in the neighborhood for proposed development and the
like.
The inputs for the assessment are derived from both market assessment and primary
demand assessment surveys carried out within the primary & secondary catchments of the
Project Site. The real estate market assessment covered both macro- and micro-market
assessment across all core real estate (residential, commercial/office and hospitality) subsectors in general and the retail sub-sector in particular.
In the case of primary demand assessment, a perception analysis has been conducted
covering households and shoppers for shopping behavior & perceptions and retailers for
their perceptions & preferences. In addition, about 20 perceptions were captured from
office occupiers from Kochi and Bangalore to ascertain their interest to expand in Thrissur.
The table below presents the framework adopted for the primary demand assessment
surveys.
Table 6.1: Framework on Methodology Adopted for Primary Demand Assessment Surveys
Sl.

Type of Survey

Survey Details

No. of Samples

1.

Household
Surveys (In-home
Surveys)
and
Shoppers Surveys

Surveys covered SEC A & B category population

Distributed samples across micro-markets in the city,
with larger number of samples in the immediate
catchment, especially in Northwest Quadrant (where
the Project Site is located), Western, South and
Southwest quadrant.
Shoppers surveys were conducted at Big Bazaar,
Reliance Trend, Municipal Market Complex/Building,
More, Kokkalai (Old area of Thrissur-Close to
Thrissur Railway Station), Swaraj Round (Circle) and
in location like MG Road, Achutha Menon Road,
Palace Ground, Town Hall Road, Station Road,
Ashwani Junction and Mission Quarters Road

Household
Surveys - 215
Samples
Shoppers Surveys
- 100 Samples

2.

Retailers Survey

Covered major retailers (National & Local) across all

retail categories in Thrissur and perception from
retailers from operational malls in Kochi.
Distributed samples across various bands, like
Kalyan Silk, EMKE silk, Domino's Pizza, Reliance
Market, United Colour of Benetton (City Arcade),
PUMA, Sony, Chungath Jewellery, Woodland, Big
Bazaar, Chakolas, Baskin Robbins, Alice Gold,
Joyalukkas, avatar, Titan, BRIGHT Furniture Mart,

50 Samples

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Sl.

Type of Survey

Survey Details

Final Report
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No. of Samples

and Jayalakshmi etc.

3.

6.2

Occupiers Survey

Occupiers surveys were conducted in Kochi and

Bangalore
Surveys covered several IT-ITES, and BFSI
occupiers

20 Samples
(10 samples each
at Kochi and
Bangalore)

CATCHMENT DELINEATION AND ANALYSIS

6.2.1 CATCHMENT DELINEATION

The catchment of the Project Site has been delineated after conducting a reconnaissance
survey at different areas in the neighborhood and the city to assess the extent of
movement of people for retail and related activities. Based on this the shoppers surveys
were carried out at various retail destinations as detailed above to delineate the catchment
zones for the Project site. It is observed that the Project Site will have primary and
secondary catchment zones based on the travel distance and the percentage of shoppers
in each zone.
As per the survey findings, each retail destination attracts an average of about 79% of the
shoppers from its primary catchment, which extends up to a distance of 6 km followed by
14% from secondary (6-12 km) catchment. There is a small percentage of about 7% of the
shoppers also coming from the nearby urban centers around Thrissur, which is considered
as the tertiary catchment for the proposed retail development on the Project Site.
The primary and secondary catchment areas cover a total radius of about 12 km which
comprises of the areas located within the Thrissur Corporation limits. The areas beyond
the Corporation limits forms part of the urban agglomeration (as per the Census 2011),
which include locations like Vadakkencherry, Wadakanchery, Guruvayoor, Kunnamkulam,
Chavakkad, Kaipamangalam, Chalakuddy and Kodungalloor.
Map showing the delineated primary and secondary catchment is presented in the
following page.

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Final Report
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Map 6.1: Map Showing the Primary and Secondary Catchment of the Project Site

Source: Real Estate Market Research and Analysis; Jones Lang LaSalle; April 2013

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Map showing the urban centers surrounding the city, which forms part of the tertiary
catchment, is presented below.
Map 6.2: Map Showing the Urban Centers of Tertiary Catchment of the Project Site

Source: Real Estate Market Research and Analysis; Jones Lang LaSalle; April 2013

Following are the areas under primary secondary and tertiary catchment of the Project Site.
Table 6.2: Catchment Details of Project Site
Primary*
Catchment

Punkunnam, Puzhakkal, Amalanagar, Adatt, Patturaikkal, Viyyor, Kolazhy, Chembukkav,

Keeramkulangara, Palikulam, Paravattani, Kuraichira, Koorkenchery, Vadookara, Eithuruth,
Olarikkara, Ayyanthole and Kanattukar etc.

Secondary
Catchment

Avanoor, Chitilappilly, Peramangalam, Pottore, Udayanagar, Ramavaramapuram,

Kuttanalur, Chiyyaram, Ollur and Chettupuzha, etc.

Tertiary
Catchment

Vadakkencherry, Wadakanchery, Guruvayoor, Kunnamkulam, Chavakkad, Kaipamangalam,

Chalakuddy and Kodungalloor

Source: Real Estate Market Research and Analysis; Jones Lang LaSalle; April 2013

6.2.2 CATCHMENT ASSESSMENT AND ANALYSIS

Key Characteristics
The table below summarizes the key characteristics and features of the population residing
in the catchments.
Table 6.3: Key Socio-Economic Features of the Primary and Secondary Catchment of the
Project Site
Location
Thrissur
Corporation

Neighborhood Characteristics

Potential for Project Development

High social index. Upper income and middle

income group population with higher level of
disposable income and lifestyle aspirations.

High potential for any real estate

development.

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Location

Final Report
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Neighborhood Characteristics

Potential for Project Development

Adat

Medium social index. A major cluster of diamond

cutting employees

Moderate potential for any real

estate development.

Kolazhy

Residential and agricultural area comprising of

middle to low income group with low purchasing
power.

Low to moderate potential for the

Project development

Avanoor

Residential and agricultural area comprising of

middle to low income group with low purchasing
power.

Low to moderate potential for the

Project development

Source: Real Estate Market Research and Analysis; Jones Lang LaSalle; April 2013

Demographic Characteristics
The primary and secondary catchment areas are within the jurisdiction of Thrissur
Corporation and thus the population figures have been collated based on the Census
figures 2011. The areas considered under the tertiary catchment are located under the
Thrissur UA as per the Census 2011. The population growth rates have been estimated
based on growth derived based on Census 2001 and 2011 figures. The tables below
present the demographic characteristics of the population residing in the catchment area of
the Project Site.
Table 6.4: Key Demographic Features of the Catchment Area of the Project Site
Catchment
Primary Catchment

Total Population (As

per Census 2011)

Total Population
(Projected 2013*)

Total Population
(Projected 2016*)

2,49,321

2,49,321

2,49,321

66,275

66,275

66,275

Tertiary Catchment

1,24,194

1,53,468

2,08,721

Total

4,39,790

4,69,064

5,24,317

Secondary Catchment

Note: Primary catchment covers areas located within Thrissur Corporation (79%), Secondary catchment covers about 21% of
Thrissur Corporation and Tertiary catchment covers of 7% of the District Urban Population.
* Projected population based on 2011 Census Figures. Thrissur Corporation indicates negative growth and therefore no increase
in population figures have been considered for the Primary and Secondary catchments.
Source: Census of India 2011

Based on the above, target population (SEC A & B category) and households within the
catchment area of the Project Site is estimated for the current year ( year 2013) and year
2016. The same is presented in the table in the following page.

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Table 6.5: Existing and Projected SEC A & B Population and Households within the Catchment Area of the Project Site
Catchment

Population
(Census 20111/)

Total No. of
Households2/

Total No. of SEC

A&B Households3/

Total Target Households

Thrissur Corporation (79%)

2,49,321

57,982

16,037

Additional Supply from the On-going/New Projects

--

Sub Total

2,49,321

57,982

16,037

16,037

16,037

17,385

66,275

15,413

4,263

4,263

4,263

4,263

2011

2013

2016

Primary Catchment
--

--

16,037
--

16,037
--

16,037
1,348

Secondary Catchment
Thrissur Corporation (21%)
Additional Supply from the On-going/New Projects
Sub Total

--

--

--

--

--

483

66,275

15,413

4,263

4,263

4,263

4,746

Thrissur District Urban Population (7%)

1,24,194

27599

7633

7633

9,432

12,828

Sub Total

1,24,194

27599

7633

7633

9,432

12,828

27,933

29,732

34,959

Tertiary Catchment

Grand Total
Population figures based on 2011 Census data
2/ Households calculated based on the average household size indicated in the primary surveys in the catchments.
3/ Proportion of population under SEC A & B Category is 27.7% and is based on City Skyline Data 2012 published by Indicus Analytics
1/

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Catchment Profiling
A primary survey of shoppers and residential population in the catchment was undertaken
to understand the perceptions and preferences of consumers of the primary & secondary
catchments and other areas of the city. Opinion and feedback received through this survey
is utilized for ascertaining the demand for the retail development on the Project Site.
Household Size: The average household size of the primary & secondary catchment is 4.3.
About 60% of the population in the primary & secondary catchment has a family size of 3
to 6 members. About one-third of the households had 1 to 3 members and remaining
households had 6 to 8 members in the household. This indicates the increasing nuclear
families of the households in Thrissur, which in-turn result in the increase in requirement of
commodities and thus increase in spending.
Thrissur is also known for having a large percentage of the population working abroad
mainly in the Middle East. Similar characteristics were also indicated in the household
surveys wherein the primary & secondary catchment had approximately one-fifth of
families with members residing abroad. This indicates a higher buying power for the
households in the catchments due to remittances from the NRI segment. Majority of these
households in the catchment have 1 -2 members working abroad followed by about 6-7%
households with 3-4 members residing/working abroad.
Earning Members: Majority, over half (55%) of the households within the primary
catchment have single earning member while the remaining had more than one earning
members in the household. However, in the case of the secondary catchment, almost twothird of the respondents had single earning member, while the remaining had two or more
earning members in the household.
Occupation Profile: About two-third
(70%) of the households in the
catchment are employed in the
private sector. There is small
percentage of the households
under the self-employed category
and public sector employment.
Majority of the respondents in
primary & secondary catchment
have reported a monthly household
income of INR 30,001 - 60,000.
While 14-15% have reported
monthly income of INR 60,001 - 90,000. It was also observed that primary catchment alone
had about 10% of the respondents with income above INR 150,000 per month. The
average monthly household income works out to be INR 58,606 and INR 46,580 per month
for the primary and secondary catchment respectively.

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However the above analysis does not include the remittances by NRI members of the
household.
Workplace Location: Majority (17%) of the respondents in the primary catchment work in
and around Swaraj Circle (Thrissur Round) followed Ayyanthole and Punkunnam (10%
each). The workplace locations for the remaining 29% of the respondents are almost
equally distributed among Puzhakkal (8%), Punkunnam (7%), Kuraichira (7%), Olarikkara
(7%), etc. The secondary catchment also has major percentage (20%) of respondents
working in and around Swaraj Circle followed by Ayyanthole (17%), Patturaickal (14%),
Poonkunnam (12%) and Ollur (11%).
Housing Typology and Ownership: Over 95% of the respondents were residing in individual
homes in the primary & secondary catchment while the remaining was in the apartments.
Majority of the respondents (92-93%) have reported living in own houses and a small
percentage of the population resides in rented homes with average monthly rental of about
INR 7,200. Most of the apartments and villas developments are either second homes or for
rental accommodation whose owners are mainly investors or expatriates.

6.3

REAL ESTATE MICRO-MARKET SUB-SECTOR TRENDS

6.3.1 MICRO-MARKET OVERVIEW

The areas / locations within the primary catchment of the Project Site (the micro-market)
have been assessed in detail. An inventory of developments in the area was carried out to
identify the supply scenario prevailing in the catchment of the Project Site. Below are some
of the general trends prevailing within the micro-market from the real estate perspective.

The micro-market has mix of residential, hospitality, small scale retail & commercial
developments;
Retail formats in the micro-market is mainly the automobile showrooms, food outlets,
etc.
The residential developments are primarily by the local developers along Punkunnam
stretch. These are mainly Grade B & C developments.
Lulu International Convention Center and Puzhackal River Tourism Center add to the
hospitality profile of the micro-market.
Proposed KSRTC Bus Terminal is located in this stretch. Few Commercial
developments are proposed in the stretch.

The table below provides an overview of the prevailing micro-market situation in the
primary catchment of the Project Site, covering core real estate sectors.
Table 6.6: Overview of the Micro-Market Situation for the Project Site
Sub-Sector

Description

Prevailing Prices

Residential

Several upcoming standalone apartment projects

exist in the areas like Ayyanthole, Punkunnam,
Chakkamukku and Amala College

Apartments - Capital Value: INR

2,300 - 4,500 per sq. ft. of saleable
area

Commercial

Several standalone buildings, wherein the ground and

first floor are utilized for retail and the upper floors for
commercial / office use

Standalone Development - Rental

Value: INR 25-60 per sq. ft. per
month

Retail

Standalone formats for retail development. Micromarket has large presence of automobile showrooms,
small F&B outlets, and furniture & light showrooms.
Sobha City Mall, which is under construction, is
located within this catchment

Standalone Development Value: INR 45-100 per sq.

month
Sobha City Mall - Capital
INR 4,500-9,800 per sq.
saleable area

Rental
ft. per
Value:
ft. of

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Sub-Sector

Description

Prevailing Prices

Hospitality

There are several starred hotels in the city located

within CBD and SBD locations. Lulu International
Convention Center is located in close proximity to the
Project Site.

ADR: INR 2,562 for the MicroMarket

ADR of Lulu ICC: INR 4,000 7,000 per day

Source: Real Estate Market Research and Analysis; Jones Lang LaSalle; April 2013

6.3.2 RETAIL SUB-SECTOR

Retail sub-sector in the city is dominated by high street developments located around the
Swaraj Round Circle, MG Road, Palace Road, etc. in the CBD. There are few standalone
shopping complexes located in these high street areas with areas ranging from 40-000 sq.
ft. to 50,000 sq. ft. Even in these complexes, retail is limited to only the ground and first
floors. Local brands occupy about 60-65% of the total retail space in the city. Few
examples of existing organized retail developments are the apparel & jewellery showrooms
(which are generally owned) and a Big Bazaar store.
There are two operational shopping complexes in the city, viz. the City Centre and Centre
Point located in the city CBD. The paragraphs below present a brief description of these
shopping complexes:

City Centre is located in the Swaraj Round, the CBD of the city. The shopping complex
has a total area of approximately 45,000 sq. ft. with a floor plate of 9,000 sq. ft. The
ground floor comprises of inline stores and the major categories are apparel, F&B,
supermarket, jewellery store and gifts store. The first and second floor also has almost
the same tenant mix. The area of individual shops in these three floors varies from 450
sq. ft. to 2,000 sq. ft. The supermarket occupies the largest area of approximately
2,000 sq. ft. Fourth and fifth floor is occupied by educational institutes and offices. The
brands present in City Centre include Cottons, Peter England, City Supermarket, Zapp,
Kobbler, Scullers, Lee, Wrangler, etc. Existing lease rentals vary from INR 60-150 per
sq. ft. per month. Most of the shops are sold out to investors, who have in turn leased
out the premises to the retailers. The sale price ranges from INR 9,000- 15,000 per sq.
ft. for the ground floor.

Centre Point is located at MG Road. The approximate area of this complex is 40,000
sq. ft. and has a floor plate of approximately 8,000 sq. ft. The retail formats are located
on the Ground Floor. The formats present include a local super market, food outlet,
computer hardware store, travel agency, etc. No major brands are present here. The
upper floors are occupied by institutes such as Frank Finn and offices. The lease
rentals vary from INR 50-100 per sq. ft. per month. Though the shopping complex has
a good frontage, failed to perform well due to poor product mix, and lack of parking
facilities.

The immediate micro-market has large presence of automobile showrooms, a few small
scale F&B outlets, and furniture & light showrooms. The micro-market also houses few
super markets developed by local players. Under construction Sobha City Mall is also
located along this stretch (SH-69), at a distance of about 1 km from the Project Site.
Details of the Sobha City Mall is given in Section 3.4 above.
Map showing the Key retail development in the primary & secondary catchment is
presented in the following page.

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Map 6.3: Map Showing the Key Retail Developments in the Primary and Secondary Catchment of the Project Site

Source: Real Estate Market Research and Analysis; Jones Lang LaSalle; April 2013

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Retailers Preferences
As part of the primary surveys, retailers survey was carried out to assess the preferences
of the retailers and retail shopping characteristic of the city. Two retailers from each key
category were surveyed to understand the preferences from all the categories. Key
outcome and observations are presented below.
Area Preference: There is high preference for increased area requirements from categories
like Home Furnishings, Jewellery and Supermarket. This could be due to the nonavailability of larger format retail stores in the city. Accessory stores, electronics stores and
gifts stores are more or less satisfied with the existing area. Home furnishing stores are
presently functioning in approximately 2,750 sq. ft. area and they prefer expansion to 3,833
sq. ft. Similarly Jewellery stores that are functional in an average area of 5,036 sq. ft. prefer
to expand to larger areas of 6,250 sq. ft.

Source: Primary Preference Surveys of Retailers; Jones Lang LaSalle; April 2013

The average area for various retail outlets within the primary & secondary catchment is
3,984 sq. ft. and the area preferred by retailers is about 4,375 sq. ft., which is higher by
about 10% over the existing sizes.
Prevailing and Preferred Rental: Majority of the retailers are paying rentals ranging
between INR 25-50 per sq. ft. per month. The rentals are on the lower side as many have
paid substantial amount of deposits and most of them are occupied for long time. In terms
of willingness-to-pay, most of the retailers surveyed have indicated their preference to pay
the rental in a lesser range except accessory stores & jewellery stores, who are willing to
pay higher rentals if provided with better facilities. The average existing rentals in the
primary & secondary catchment is INR 72 per sq. ft. per month and the preferred rental per
month is INR 68 per sq. ft. per month.

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Footfalls and Conversions: Highest footfalls in

the primary & secondary catchment are
observed for super markets followed by food
chains. The average footfalls in these
categories are in the range of 150 to 200 during
weekdays & weekends respectively. Electronics
stores, home furnishings and gift shops have
the lowest footfalls during weekdays and
weekends. On an average, there is an increase
of about 16% in the weekend footfalls over the
weekday footfalls.

Brand

In terms of conversion, the primary & secondary

catchment witnessed about 65% higher
conversion during the weekend over the week
days. Jewellery, apparel formats, Super
markets, Cinema Theaters and food chains find
higher conversions during the weekends.
However, there is no noticeable change in the
conversion during weekends for electronics,
gifts & toys and accessories.

Brand

Theatre Name

Reliance Mobile
City Super Market
Jayalakshmi
Reliance Trends
Big Bazaar
Fashion Fabrics
Reliance Super

City Super Market

Jayalakshmi
Reliance Trends
Big Bazaar
Fashion Fabrics
Reliance Super

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Weekdays Footfall
(Nos.)
300
4000
700
300
5000
1000
1000
Weekends Footfall
(nos.)
5000-6000
1000
300
6000
1000
1000

Weekdays Footfall (Nos.)

Weekends Footfall (Nos.)

Total Seating Capacity

Jos Theatre

400

900

1100

Swapna Theatre

450

600

1142

Ragam Theatre

600

960

1200

Source: Primary Preference Surveys of Retailers; Jones Lang LaSalle; April 2013

Ticket Size: The ticket size is highest

among jewellery stores and home
furnishing stores. This is followed by the
electronic goods and supermarkets,
apparels and footwear segment. F&B,
accessory
stores,
etc.
have
comparatively lower ticket sizes, which
are below INR 400. The average ticket
size for all categories considered
together is INR 775.
Age Group of Shoppers: The active
shoppers in the city are basically those
between 25 to 50 years of age and these
are primarily the working class
population. The younger people in the
age group from 15 to 25 are active
shoppers of gifts & food, which
constitutes about 62%. Home furnishing
stores and majority of the supermarkets
have shoppers in the age group of 30 to
50. The average age of shopper in the
primary & secondary catchment is 32
years.

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Preference and Priorities of Retailers: Approximately 12% of the retailers surveyed

indicated that they do not have enough retail space as per their requirement. The major
categories with this view were apparels stores, home furnishing stores, food chains,
electronics stores and supermarket formats. About three-fourth of the retailers surveyed
are looking for expansion or shifting to a new premises with better facilities in the city. All
categories excluding jewellery and footwear are looking out for expansion as per the
retailers survey.
Preferred Location for Retail Expansion: Most of the retailers have indicated preference for
CBD for expansion, particularly in the case of F&B, accessories, gifts & toys and
electronics. F&B prefer to operate at East Fort, followed by West Fort and MG Road areas.
Apparels prefer expansion at Mission Quarters, Kuttanalur (near NH Bypass), MG Road,
Punkunnam and Ayyanthole which are all upcoming residential locations. Electronic stores
also prefer expansion towards Punkunnam while Mannuthy is an attractive location for
home furnishing stores. No major real estate development is happening in the Project Site
surroundings.

Source: Primary Preference Surveys of Retailers; Jones Lang LaSalle; April 2013

Location Preference of Retailers: Close to half (46%) of the retailers surveyed indicated
their willingness to relocate to a mall, while the rest (52%) of the retailers interested in
shifting to stand alone unit. The categories looking forward to locate within shopping mall
format are Apparel, Food Chain, Gift and Toys and Electronics Stores. The apparel formats
preferred locating in areas which are visible from mall or close to the food court of multiplex.

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Gifts & toy shop preferred to locate near areas which are visible from road while electronics
format preferred to locate near the multiplex.
Selection Criteria for Retail Expansion: The survey on selection criteria for retail purpose
indicated that location has the highest priority followed by footfalls, parking and
accessibility. Hence, any development which is at a preferred location with adequate
parking facilities and good ambience would be a development preferred by the retailers.

Source: Primary Preference Surveys of Retailers; Jones Lang LaSalle; April 2013

Ranking of Retail Destinations: Palace Road and Shakthan Thambura are the most
preferred retail destination for new outlets, followed by Swaraj Round and MG Road. The
Project Site ranks seventh among the various destinations preferred. However, owing to
the lack of availability of retail space in MG Road, CBD, etc., there will be lesser space for
expansion and hence the suburbs of the city will be preferred in which case, the Project
Site has better ranking than other suburban locations such as Ayyanthole, Kuttanalur,
Patturaikkal, etc.

Source: Primary Preference Surveys of Retailers; Jones Lang LaSalle; April 2013

Detailed discussion points, perceptions and preferences of Retailers Surveys, Shoppers

and Mall Operators in Kochi are presented in Annexure under Section 9.2.
Achievable Rentals for Project Site
In order to arrive at a benchmark rental for the various format envisaged under the retail
mall as part of the integrated mixed-use development on the Project Site, comparable
projects under the organized retail in the micro-market are considered. These projects are
either a part of the proposed mall or standalone complex operational in the micro-market.
Adjustments are made in terms of premium and discount parameters to arrive at
achievable pricing for the proposed retail mall on the Project Site.
For the Line Stores/ Vanilla Format, the recently transacted rental of Sobha City Mall,
which is about INR 98 per sq. ft. per month (translated from the capital value @ 12% yield
rate), is considered for the benchmarking. Whereas, for medium and larger format, Home
Furnishing Shop from Omega Center (Off SH-69) and Reliance Trend (Grand Mall),

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located at West Fort has been considered and benchmarked to arrive at the achievable
rental for the proposed retail development. The table in the following page presents the
price benchmarking and adjustments to arrive at achievable pricing.
Table 6.7: Price Benchmarking - Achievable Rentals for the Proposed Mall on the Project
Site
Benchmark Competitive Retail Malls
Benchmark Unit - Average Rental Value (INR
per sq. ft. per month)

Grand Mall- Reliance

Trends
Adjustments

Benchmark Price

Omega Center

Value

Adjustments

50

Value
46

Premium / Discount Factors

Accessibility
Location and Its Catchment
Catchment Profile
Total Adjustments
Average Achievable Rentals (INR per sq. ft.)

5%

5%

-15%

-8

-5%

-3

-15%

43

5%

48

Large
Format

43

Medium
Format

48

Source: Real Estate Market Research and Analysis; Jones Lang LaSalle; April 2013

Based on the above table, average achievable lease rent (on leasable/chargeable area
basis) will be INR 48 per sq. ft. per month, for the overall medium format mall, which is
comparable to the size of the proposed retail mall on the Project Site. Please note that
the above achievable average lease rent is as on the date of assessment and is expected
to grow at around 5% per annum during the construction period. Considering 3 years for
construction of the proposed retail mall on the Project Site, estimated achievable average
lease rent for the retail mall will be INR 56 per sq. ft. per month during the year of operation.
Proposed mixed-use development on the Project Site envisages showroom space as part
of the commercial block. Since the showroom space largely occupied by large retailers,
who typically represent anchor and/or mini-anchor, the achievable rental for showroom
space can be same as that of large format store, which is INR 43 per sq. ft. per month.
Please note that the above lease rent is as on the date of assessment and is expected to
grow at around 5% per annum during the construction period. Considering 3 years for
construction of the proposed showroom space on the Project Site, estimated achievable
lease rent for the showroom space will be INR 50 per sq. ft. per month during the year of
operation.

6.3.3 COMMERCIAL / OFFICE SUB-SECTOR

At present, there are no graded commercial developments within the micro-market of the
Project Site. However, KINFRA has plans to develop Apparel Park and Gold Park at
Puzhakkal along with an IT Park. The Puzhackalpadam area is 40 acres in extent and
proposed to be developed as a Knowledge Park by KINFRA.
Other commercial buildings within the micro-market include the government offices at
Ayyanthole. The district headquarters is located at Ayyanthole and it houses primarily the
District Collectorate, District Court, District Industrial Centre, Excise Department Office,
Family Court, etc. The existing court campus is being expanded and the construction of the
same commenced during 4Q 2012.
Key outcome of the occupiers surveys conducted with senior officials in some of the
leading IT-ITES companies in Bangalore and Kochi are summarized below:

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Decisions making in terms of expansion to new geographies are based on human

resource teams assessment of availability of quality skilled manpower of required
experience and expertise.
Once a new geography qualifies as per human resource teams assessment, other
decision making parameters will be evaluated, which includes, good connectivity,
general business environment (ease of doing business due to state/city specific
policies), reliability of infrastructure (power, telecom, etc.), availability of good
residential, retail, entertainment and leisure, education, healthcare options, and finally
the real estate cost of doing business.
Real estate cost of doing business includes rentals for quality warm shell space, cost of
support skilled/unskilled manpower (for housekeeping & administrative functions), cost
of power, water supply, etc.
Based on existing expansion plans for leading IT-ITES companies in Bangalore, there
are no concrete plans to expand to tier-2 and tier-3 cities as the respondents feel that
quality of manpower, its cost and real estate cost in Bangalore is quite competitive
compared to some of the established IT-ITES tier-2 cities in South India like Mangalore
and Kochi.
Some of the occupiers informed that there were plans to expand to tier-2 cities in the
past while such plans have been shelved during business restructuring after recent
global financial crisis during 2009/2010.
Many of the IT-ITES companies in Bangalore had evaluated Kochi as Tier-2 city in
Kerala and opined that Trissur was never evaluated for future expansion.
Occupiers in Kochi have opined that Thrissur is a potential geography for BPO/KPO
related activities focusing BFSI segment. However, they do not have any expansion
plans as such to expand their business in Thrissur.

In a nutshell, the occupiers surveys did not provide any concrete demand for IT-ITES
office space in Thrissur in near future.
In order to arrive at a benchmark price (rental value) for commercial / office space on warm
shell basis, for the proposed development on the Project Site, comparable projects in the
micro-market have been considered and analyzed. Adjustments are made in terms of
premium and discount parameters to arrive at the achievable rentals. As described earlier
in the report, the city does not have graded commercial space. Most of the offices are
located as part of the standalone complex where the floor plate size range from 3,000 to
4,000 sq. ft. Since there are no graded comparable instances for price benchmarking,
standalone complex like Vijas Infra located near Vadakke Bus Stand, Spoon Tower
(Poothole) and Fabis Arcade (High Road) are considered for benchmarking excises. The
arrived average achievable rental for commercial / office space at Project Site is further
qualified based on the size of the format, considering the prevailing market discounted
percentage. The table in the following page presents the price adjustments carried out to
arrive at achievable pricing for the commercial / office space at the Project Site.
Table 6.8: Price Benchmarking - Achievable Rentals for the Proposed Commercial / Office
Space (on Warm Shell Basis) on the Project Site
Benchmark Competitive
Commercial Office Space
Benchmark Unit - Average Rental
Value (INR per sq. ft. per month)

Vijas Infra
Adjustments

Benchmark Price

Spoon Tower

Value

Adjustments

58

Fabis Arcade

Value

Adjustments

50

Value
60

Premium / Discount Factors

Location
Infrastructure Development
Initiatives

-10%

(6)

-10%

(5)

10%

-10%

(6)
-

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Benchmark Competitive
Commercial Office Space
Benchmark Unit - Average Rental
Value (INR per sq. ft. per month)

Vijas Infra

Final Report
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Spoon Tower

Fabis Arcade

Adjustments

Value

Adjustments

Value

Adjustments

Value

5%

5%

5%

-10%

(6)

-10%

(5)

-10%

(6)

Amenities Provided

5%

5%

5%

Grade of Construction

5%

5%

5%

Margin for Negotiation

-10%

(6)

-10%

(5)

-10%

(6)

Status of the Project

-10%

(6)

-10%

(5)

-10%

(6)

Adjusted Rental (INR per sq.

ft.)

-25%

44

-15%

43

-25%

45

Weightage

35%

Scalability Option
Scale of Development

35%

30%

Average Achievable Rentals for Commercial / Office Space at the Project Site
(INR per sq. ft. per month) on Warm Shell Basis

44

Source: Real Estate Market Research and Analysis; Jones Lang LaSalle; April 2013

Since the proposed floor plate is about 10,000 sq. ft. and overall development is about
70,000 sq. ft., it is recommended to consider different formats for improving the
marketability. The table below presents the suggestive format size along with achievable/
recommended rentals.
Table 6.9: Suggestive Format Sizes and Recommended Achievable Rentals for the
Proposed Commercial / Office Space (on Warm Shell Basis) on the Project Site
Sl.
No.

Format Type and Size

Average Base
Rental (INR per sq.
ft. per month)

Suggestive
Premium/
Discount

Achievable Rental
(INR per sq. ft. per
month)

1.

Small Format (Unit Size up to 4,000

sq. ft.)

44

0%

44

2.

Medium Format (Unit Size ranging

between 4,001-10,000 sq. ft.)

44

(10%)

39

3.

Large Format (Unit Size ranging

between 10,001-20,000 sq. ft.)

44

(20%)

35

4.

Anchor (Unit Size more than 20,000

sq. ft.) - more than 30% of total
Available Area

44

(35%)

28

Source: Real Estate Market Research and Analysis; Jones Lang LaSalle; April 2013

Based on the above table, average achievable lease rent (on leasable/chargeable area
basis) will be INR 42 per sq. ft. per month, for offices spaces under different format & size.
Please note that the above achievable average lease rent is as on the date of assessment
and is expected to grow at around 5% per annum during the construction period.
Considering 3 years for construction of the proposed office development on the Project
Site, estimated achievable average lease rent for the office space will be INR 49 per sq. ft.
per month during the year of operation.

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6.3.4 RESIDENTIAL SUB-SECTOR

Overview
The Project Site is located at Punkunnam, which forms part of the SBD. At present, the
SBD is the most active market in the city due its proximity to the CBD, comparatively lesser
land/real estate cost, and better infrastructure facilities, as compared to the CBD. The SBD
includes areas like Ayyanthole, Chembukkav, Chungam, Kottapuram, Saktan Stand
premises, locations near Mission Hospital, Palakkad Road, Poothole, Punkunnam, etc.
Micro-Market Trends - Apartment Typology
Supply: About 48% of total apartment supply is in the SBD locations with northwest and
southern areas taking the largest share of 35% and 18% respectively. The share of
southeast and western SBD is only 6% each. The northeastern SBD are in the early stages
of development as majority of the land parcel is owned by the various government
departments.
Absorption: The average absorption in the city for all the graded projects (Villas &
Apartment) is around 62%. Grade-B & C projects had the highest absorption of 75% and
55% respectively depending upon the location and whereas the Grade-A projects has an
average absorption of 60%. There is a marginal increase in the absorption figures from
2011 to 2012 due to weak economic scenario across the country.
Pricing: The average price range of apartments constituting all grades (Grade A, B & C) in
the SBD locations like Punkunnam, Ayyanthole, Poothole, etc. ranging between INR 2,4003,700 per sq. ft. The table below presents historic trends in capital values of residential
apartments in the select SBD locations in the city.
Other market trends in terms of historical capital values, typology, absorption, and
inventory & mapping of upcoming residential apartments projects are presented in detail
under Section 3.2 of this report.

6.3.5 HOSPITALITY SUB-SECTOR

While there are several starred hotels located within the micro-market of the Project Site,
the most prominent being the Lulu International Convention Center, which is located within
1 km distance from the Project Site. Details of key hospitality developments in the city are
detailed under Section 3.5 and the Lulu International Convention Center under the Section
3.6 of this report.

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RETAIL SHOPPING BEHAVIOR ANALYSIS

7.1

GENERAL

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As stated in the previous chapter, the inputs for the assessment are derived from both
market assessment and primary demand assessment surveys carried out within the
primary & secondary catchments of the Project Site. In the case of primary demand
assessment, a perception analysis has been conducted covering households and
shoppers for shopping behavior & perceptions. Shoppers on-site exit surveys were
conducted at City Center, Center Point and Big Bazaar (all together about 100 samples)
while the household (in-home) surveys were conducted within select locations (all together
about 215 samples) within the primary, secondary and tertiary catchments of the Project
Site.
The sections below present the outcome and key observations on the shopping behavior &
perceptions of the respondents of household and shoppers surveys.
It may be noted that the city does not have an operational mall and thus majority of
the respondents may not have exposure to the retail mall and the experiences of
shopping in retail mall. Thus, some of the responses may be attributed to such
limited experience.

7.2

RETAIL SHOPPING BEHAVIOR OF TARGET POPULATION

Location Preference for Shopping
In terms of location preference for shopping, many respondents have indicated preference
to shop in a mall for very few categories like Gaming/Entertainment, Multiplex, Books &
Music, Arts & Crafts and Accessories, as presented in the charts below, separately for
primary and secondary catchments of the Project Site.

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Source: Primary Preference Surveys of Households & Shoppers; Jones Lang LaSalle; April 2013

Shopping Frequency, Expenditure and Group Size

Majority of the respondents of primary catchment prefer to shop within the city. Higher
frequency of trips is for categories like Food & Beverages (2.1 times a month), Fine Dining
& Multiplex (1.7 times each a month) and Food & Groceries (1.6 times per month). In case
of secondary catchment, higher frequency was reported for Food & Groceries, followed by
Food & Beverages and Multiplex. The charts below present monthly frequency of visits by
the respondents for different categories of retail.

Source: Primary Preference Surveys of Households & Shoppers; Jones Lang LaSalle; April 2013

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In terms of expenditure, excluding large ticket categories like Jewelleries, Furniture and
Electronic Goods, highest expenditure is seen in Food & Groceries, Clothing & Fashion
and Accessories in both primary and secondary catchment of the Project Site, as
presented in the charts below.

Source: Primary Preference Surveys of Households & Shoppers; Jones Lang LaSalle; April 2013

The average expenditure in the primary catchment is estimated as INR 41,403 per
month while that of the secondary catchment is estimated as INR 39,398 per month.
Average group size visiting the shopping centers is 3.14 indicating the the group may
consists of 3 to 4 persons.
Conveyance for Shopping
Majority (two-third) of the respondents prefer to use four wheelers for shopping in the
catchment while about two-fifth of the respondents. Others have indicated preference for
using Public Transport and Para Transport for shopping. Considering the majority
responses, it is of paramount importance to provide adequate parking spaces both 4wheelers and 2-wheelers in the proposed retail mall.
Perception Analysis
Preferred Shopping Location: In order
to ascertain the perception of the
target
population
for shopping,
existing/operational shopping centers
and malls both in Thrissur and Kochi
are considered. A majority (91%) of
the respondents in the primary and
secondary catchment indicated their
preference
for
shopping
within
Thrissur City. A small percentage

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Final Report
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(about 9%) of the respondents has reported their interest to visit Kochi mainly for multiplex
& entertainment categories. City Center is the preferred shopping location for majority
(41%) of the respondents.
Ranking of Operational Malls & Shopping Centers: Majority of the respondents ranked Big
Bazaar as number one, as it meets the entire requirements under single roof. Similarly,
City Center is also ranked as the best retail outlet, which also is a successful shopping
center due to the variety of products available. However, the Center Point at MG Road is
not preferred much due to poor design and availability of facilities & amenities. Besides the
shopping centers in the city, almost 13% of the respondents have ranked malls in Kochi as
a best place for shopping and entertainment.
Incentives and Disincentives for Visiting Operational Malls: The most favored shopping
center in the city is City Center. The major incentives for shopping complex are adequacy
of parking facilities, merchandise/activity mix, facility management, ambience, design,
location and accessibility. No major disincentives are perceived for City Center. The next
preferred outlet is Big Bazaar. The major incentives for shopping at Big Bazaar are the
variety of products available, location and accessibility while respondents indicated
displeasure on the non-availability of adequate parking. Centre Point was ranked third in
the survey.
Rating of Location for Mall Development: The ranking of respondents indicate that the
preferred location for a mall is MG Road followed by Swaraj Circle, East Fort, West Fort,
Patturaikkal and Pookunnam. A
majority
(about
92%)
of
the
respondents have rated the location of
the Project Site (Pookunnam) as good
in the primary catchment and scored
almost
maximum
from
the
respondents
of
the
secondary
catchment. Thus, it can be inferred
that the Project Site has a potential to
emerge as the favored location for
shopping.

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Final Report
- 89 -

Source: Primary Preference Surveys of Households & Shoppers; Jones Lang LaSalle; April 2013

Preferred Retail Format: Most favorable product mix option for establishing a new retail
outlet in the catchment is a general Mall followed by mall plus hypermarket format. Since
the catchment profile is yet to develop in terms of proportion of SEC A&B population
category, a hypermarket along with a mall would be a preferred format.

Source: Primary Preference Surveys of Households & Shoppers; Jones Lang LaSalle; April 2013

Preferred Activities within the

Mall: Activities like Live Shows
/ Events and Exhibitions were
most
preferred
by
the
respondents. In terms of
facilities,
most
of
the
respondents have indicated the
need for ATM, Valet Parking,
Pick & Drop and Children Play
Area within the mall. Activities
like Discotheque and Fitness &

Development Advisory Services for Proposed Mixed-Use Development Project on

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Spa received lesser preference, as presented in the chart below.

Source: Primary Preference Surveys of Households & Shoppers; Jones Lang LaSalle; April 2013

Final Report
- 90 -

Development Advisory Services for Proposed Mixed-Use Development Project on

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Final Report
- 91 -

DEMAND SUPPLY ANALYSIS FOR RETAIL MALL

AND BROAD TENANT MIX

8.1

GENERAL
As stated earlier, organized retail in Thrissur was introduced during 1998 with the launch of
City Centre Mall by a private developer. This development comprised of a built up area of
45,000 sq. ft. and is a Shopping Complex. The trend has continued till date with similar
kind development in the form of standalone shopping complexes being developed by many
private developers across the city. The current stock of organized retail comprising of high
street and standalone developments accounts to about 0.59 million sq. ft. and where the
unorganized segment is about 0.39 million sq. ft., indicating a 60:40 ratio of organized to
unorganized retail supply.
Thrissur has a presence of global and national brands such as Woodland, Nike, Flying
Machine, Lee, Levis, Addidas, Puma, Navigator, Doc & Mark, Wrangler, John Miller, Big
Bazzar, KFC (Upcoming- Swaraj Circle), Reliance Digital and Reliance Trends, etc. With
the higher exposure for malls (with operation of the Sobha City Mall) and the increasing
lifestyle characteristics and behavior, the city population is expected to move towards
organized retailing like other cities in India, which will significantly increase demand for
organized retail space in the city in the coming years.

8.2

METHODOLOGY ADOPTED FOR DEMAND SUPPLY ANALYSIS

The table below presents step-wise methodology adopted for carrying out demand-supply
analysis for the primary, secondary & tertiary catchments of the Project Site.
Table 8.1: Methodology for Estimating Retail Demand Supply Gap for the Catchments of
the Project Site
Step

Description / Action

1.

Populations of the primary, secondary & tertiary catchments are considered as per the Census
data and the number of households are arrived by dividing the catchment population by average
household size of the catchment as arrived at using primary survey analysis

2.

No of dwelling units added through future supply in a particular year is also added to the number
of households assuming 1 household per new dwelling unit

3.

Demand for the each retail category is calculated as per the following steps below:
{No. of target households x Trips per month per household x Spend per trip} = Monthly
top-line revenue for each retail category.
Top-line monthly revenue x Occupancy cost (percent) = Monthly Occupancy Cost (INR)
Monthly occupancy cost / Rent per sq. ft. per month = potential demand for retail space
(current demand) in sq. ft. per retail category is calculated.

4.

Demand Supply Gap = Total Demand - Current Supply in Organized Retail Sector

6.

Percentage Share of the Project Site with respect to Demand Supply Gap is calculated.

Demand for retail development is derived based on the catchment population, as maximum
business would be catered by the primary & secondary catchment of the Project Site. Total
retail space that the catchment can support has been derived based on the following
parameters.
Total residing target households in the primary, secondary and tertiary catchments;
Population projections for the year 2016 based on Census 2001 & 2011 population;

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Final Report
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Occupancy cost for retailers based on the discussions with the retailers and the
prevailing market trends; and
Prevailing rentals for each category is based on the market survey of the retail areas.

The table below describes the total demand for retail space in the catchment area.
Table 8.2: Retail Demand Estimate for the Catchment of the Project Site
Sl.
No.

Catchment

1.

Primary Catchment

2.
3.

Existing Households
(Year 2013)

Target Households
(Year 2016)

16,037

17,385

Secondary Catchment

4,263

4,746

Tertiary Catchment (7% of district urban

population)

9,432

12,828

29,732

34,959

Grand Total

Source: Primary Demand Assessment Surveys & Analysis; Jones Lang LaSalle; April 2013

8.3

DEMAND ASSESSMENT FOR RETAIL SPACE

The following table presents the demand perspective of the primary, secondary and tertiary
catchment of the Project Site in terms of potential demand for space under different retail
categories for horizon years of 2013 and 2016.

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Final Report
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Table 8.3: Derivation of Potential Retail Demand for the Catchment of the Project Site for the Year 2013 for Different Retail Categories
Sl.
No.

Trade / Merchandise Mix

A.

Food and Groceries

1.

Households (Nos.)

2.

Monthly household expenditure (INR)

3.

Top-line monthly revenue (INR)

4.

Occupancy cost

5.

Monthly occupancy cost (INR)

6.

Rent (INR per sq. ft. per month)

Primary Catchment

Secondary
Catchment

Total of Primary
and Secondary
Catchment

16,037

4,263

9,432

5,451

5,130

5071

87,414,236

21,869,208

47,836,170

Potential Demand for Retail Space (sq. ft.)

B.

Books and Music

1.

Households (Nos.)

2.

Monthly household expenditure (INR)

3.

Top-line monthly revenue (INR)

4.

Occupancy cost

5.

Monthly occupancy cost (INR)

6.

Rent (INR per sq. ft. per month)

Gifts and Toys

1.

Households (Nos.)

2.

Monthly household expenditure (INR)

3.

Top-line monthly revenue (INR)

4.

Occupancy cost

6%

6%

6,557,007

2,870,170

48

48

135,756

59,424

16,037

4,263

9,432

749

699

650

12,013,247

2,981,103

6,131,115

Potential Demand for Retail Space (sq. ft.)

C.

Tertiary Catchment

12%

12%

1,799,322

735,734

98

98

18,360

7,507

16,037

4,263

9,432

782

1,090

744

12,532,162

4,644,774

7,015,410
12%

12%

Potential Size of
the Trade

195,180

25,868

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Sl.
No.

Trade / Merchandise Mix

5.

Monthly occupancy cost (INR)

6.

Rent (INR per sq. ft. per month)

Primary Catchment

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- 94 -

Secondary
Catchment

Potential Demand for Retail Space (sq. ft.)

Total of Primary
and Secondary
Catchment

Tertiary Catchment

2,061,232

841,849

98

98

21,033

8,590

D.

Jewellery

1.

Households (Nos.)

16,037

4,263

9,432

2.

Monthly household expenditure (INR)

21,712

23,273

21,143

3.

Top-line monthly revenue (INR)

348,193,039

99,210,559

199,429,665

4.

Occupancy cost

5.

Monthly occupancy cost (INR)

6.

Rent (INR per sq. ft. per month)

Potential Demand for Retail Space (sq. ft.)

E.

Footwear and Leather Goods

1.

Households (Nos.)

2.

Monthly household expenditure (INR)

3.

Top-line monthly revenue (INR)

4.

Occupancy cost

5.

Monthly occupancy cost (INR)

6.

Rent (INR per sq. ft. per month)

Clothing and Fashion

1.

Households (Nos.)

2.

Monthly household expenditure (INR)

3%

13,422,108

5,982,890

48

48

277,890

123,869

16,037

4,263

9,432

2,571

2,501

2,321

41,222,614

10,660,226

21,896,838

Potential Demand for Retail Space (sq. ft.)

F.

3%

15%

15%

7,782,426

3,284,526

98

98

79,413

33,516

16,037

4,263

9,432

3,674

3,243

2,857

Potential Size of
the Trade

29,623

401,760

112,928

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Sl.
No.

Trade / Merchandise Mix

3.

Top-line monthly revenue (INR)

4.

Occupancy cost

5.

Monthly occupancy cost (INR)

6.

Rent (INR per sq. ft. per month)

Primary Catchment

58,917,667

Final Report
- 95 -

Secondary
Catchment
13,824,788

Potential Demand for Retail Space (sq. ft.)

G.

High-End Fashion Brands

1.

Households (Nos.)

2.

Monthly household expenditure (INR)

3.

Top-line monthly revenue (INR)

4.

Occupancy cost

5.

Monthly occupancy cost (INR)

6.

Rent (INR per sq. ft. per month)

Accessories,
Watches

Baggage,

Perfumes

1.

Households (Nos.)

2.

Monthly household expenditure (INR)

3.

Top-line monthly revenue (INR)

4.

Occupancy cost

5.

Monthly occupancy cost (INR)

6.

Rent (INR per sq. ft. per month)

Tertiary Catchment

Potential Size of
the Trade

26,949,955
15%

15%

10,911,368

4,042,493

98

98

111,340

41,250

16,037

4,263

9,432

6,153

5,576

4,393

98,671,480

23,770,243

41,435,555

Potential Demand for Retail Space (sq. ft.)

H.

Total of Primary
and Secondary
Catchment

17%

17%

20,202,884

6,836,867

98

98

206,152

69,764

152,590

275,916

&

Potential Demand for Retail Space (sq. ft.)

16,037

4,263

9,432

4,525

3,784

2,750

72,572,706

16,128,906

25,939,331
14%

14%

11,974,718

3,501,810

98

98

122,191

35,733

157,924

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Sl.
No.

Trade / Merchandise Mix

I.

Fast Food and Beverages

1.

Households (Nos.)

2.

Monthly household expenditure (INR)

3.

Top-line monthly revenue (INR)

4.

Occupancy cost

5.

Monthly occupancy cost (INR)

6.

Rent (INR per sq. ft. per month)

Primary Catchment

Final Report
- 96 -

Secondary
Catchment

Fine Dining

1.

Households (Nos.)

2.

Monthly household expenditure (INR)

3.

Top-line monthly revenue (INR)

4.

Occupancy cost

5.

Monthly occupancy cost (INR)

6.

Rent (INR per sq. ft. per month)

4,263

9,432

1,189

1,408

650

19,072,845

6,00,0163

6,131,115

Body and Healthcare

1.

Households (Nos.)

2.

Monthly household expenditure (INR)

3.

Top-line monthly revenue (INR)

4.

Occupancy cost

5.

Monthly occupancy cost (INR)

10%

10%

2,507,301

613,111

48

48

51,911

12,694

16,037

4,263

9,432

1,311

1,852

700

21,022,216

7,895,613

6,602,739

Potential Demand for Retail Space (sq. ft.)

K.

Tertiary Catchment

16,037

Potential Demand for Retail Space (sq. ft.)

J.

Total of Primary
and Secondary
Catchment

15%

15%

4,337,674

990,411

48

48

89,807

20,505

16,037

4,263

9,432

1,163

2,173

1,507

59,532,956

25,620,593

14,216,101
11%

11%

9,366,890

1,563,771

Potential Size of
the Trade

64,605

110,312

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Sl.
No.
6.

Trade / Merchandise Mix

Primary Catchment

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Secondary
Catchment

Rent (INR per sq. ft. per month)

Potential Demand for Retail Space (sq. ft.)

L.

Furniture and Furnishings

1.

Households (Nos.)

2.

Monthly household expenditure (INR)

3.

Top-line monthly revenue (INR)

4.

Occupancy cost

5.

Monthly occupancy cost (INR)

6.

Rent (INR per sq. ft. per month)

Electronic Goods

1.

Households (Nos.)

2.

Monthly household expenditure (INR)

3.

Top-line monthly revenue (INR)

4.

Occupancy cost

5.

Monthly occupancy cost (INR)

6.

Rent (INR per sq. ft. per month)

Multiplex and Movies

1.

Households (Nos.)

2.

Monthly household expenditure (INR)

3.

Top-line monthly revenue (INR)

48

48

193,931

32,376

4,263

9,432

9,487

8,549

9,917

59,532,956

25,620,593

93,538,801
8%

8%

6,812,284

7,483,104

48

48

1,41,041

1,54,930

16,037

4,263

9,432

5,653

5,542

4,850

90,647,728

23,623,013

45,747,548

Potential Demand for Retail Space (sq. ft.)

N.

Tertiary Catchment

16,037

Potential Demand for Retail Space (sq. ft.)

M.

Total of Primary
and Secondary
Catchment

3%

3%

3,428,122

1,372,426

48

48

70,976

28,415

16,037

4,263

9,432

1,115

1,125

650

17,882,574

4,794,291

6,131,115

Potential Size of
the Trade

226,308

2,95,971

99,390

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Sl.
No.

Trade / Merchandise Mix

4.

Occupancy cost

5.

Monthly occupancy cost (INR)

6.

Rent (INR per sq. ft. per month)

Primary Catchment

Final Report
- 98 -

Secondary
Catchment

Total of Primary
and Secondary
Catchment
9%

9%

2,040,918

551,800

43

43

48,022

12,984

Potential Demand for Retail Space (sq. ft.)

O.

Gaming and Entertainment

1.

Households (Nos.)

2.

Monthly household expenditure (INR)

3.

Top-line monthly revenue (INR)

4.

Occupancy cost

5.

Monthly occupancy cost (INR)

6.

Rent (INR per sq. ft. per month)

16,037

4,263

9,432

965

659

600

15,475,304

2,809,632

5,659,490
11%

11%

2,011,343

622,544

48

48

41,643

12,889

Potential Demand for Retail Space (sq. ft.)

P.

Arts and Crafts

1.

Households (Nos.)

2.

Monthly household expenditure (INR)

3.

Top-line monthly revenue (INR)

4.

Occupancy cost

5.

Monthly occupancy cost (INR)

6.

Rent (INR per sq. ft. per month)

Tertiary Catchment

16,037

4,263

9,432

1,565

1,355

1025

25,102,771

5,775,528

9,668,296

Potential Size of
the Trade

61,005

54,532

12%

12%

3,705,396

1,160,196

98

98

37,810

11,839

49,649

Total Potential Demand for Retail Space in Year 2013

2,313,561

Potential Demand for Retail Space (sq. ft.)

Source: Estimated based on Market Assessment and Primary Demand Assessment Surveys & Analysis; Jones Lang LaSalle; April 2013

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Based on the demand assessment carried out for the year 2013, demand scenario has
been projected for year 2016 using the following assumptions:
Projecting the total residing households in the primary, secondary and tertiary
catchments based on the Census 2001 & 2021 and the incremental residential units;
The household expenditure per month for each retail category has been kept constant
and same as the year 2013 (without factoring the inflation and potential net increase in
household expenditure year-on-year); and
The real estate rentals assumed for each retail category has also been constant as the
year 2013 (without factoring the rental escalation/appreciation year-on-year).
The table below summarizes retail segment-wise demand for the year 2013 and 2016
based on the above.
Table 8.4: Estimation of Retail Demand of Thrissur City
Sl.
No.

Trade / Merchandize Mix

Potential Demand for Retail Space (sq. ft.)

Current Demand (Year 2013)

Projected Demand (Year 2016)

195,180

228,780

1.

Food and Groceries

2.

Books and Music

25,868

30,221

3.

Gifts and Toys

29,623

34,650

4.

Jewellery

401,760

471,517

5.

Footwear and Leather Goods

112,928

132,147

6.

Clothing and Fashion

152,590

177,420

7.

High-End Fashion Brands

275,916

319,532

8.

Accessories, Baggage
Perfumes, & Watches

157,924

181,710

9.

Fast Food and Beverages

64,605

73,902

10.

Fine Dining

110,312

125,961

11.

Body and Healthcare

226,308

237,964

12.

Furniture and Furnishings

295,971

351,750

13.

Electronic Goods

99,390

116,016

14.

Multiplex and Movies

61,005

70,013

15.

Gaming and Entertainment

54,532

62,860

16.

Arts and Crafts

49,649

57,296

2,313,561

2,671,739

Total

Source: Estimated based on Market Assessment and Primary Demand Assessment Surveys & Analysis; Jones Lang LaSalle;
April 2013

Based on the above table, analysis and outcome, the city has a total demand for retail
space to a tune of 2.31 million sq. ft. in the current year (2013) and the projected demand
for retail space during the year 2016 (potential year of operation of retail mall on the Project
Site) is estimated to be 2.67 million sq. ft.

8.4

DEMAND-SUPPLY-GAP ASSESSMENT
Based on the and assessment for retail space presented above, the city has a total
demand for retail space to a tune of 2.31 million sq. ft. in the current year (2013) and the
projected demand for retail space during the year 2016 (potential year of operation of retail
mall on the Project Site) is estimated to be 2.67 million sq. ft. As on the date, the city has

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Final Report
- 100 -

total organized stock of about 0.59 million sq. ft., which excludes under construction Sobha
City Mall (gross leasable area of 320,000 sq. ft.). However, by the year 2016, the total
organized retail supply (existing stock and proposed supply) is estimated to be about 1.10
million sq. ft. This includes the existing retail stock and proposed supply from Sobha City
Mall, VMB Mall (Shopping Center) and Mall of Joy (Standalone Complex).
The table below summarizes demand-supply-gap scenario with respect to the proposed
Retail Mall on the Project Site for the year 2013 and 2016 (estimated year of operation).
Table 8.5: Demand-Supply-Gap for the Potential Retail Space for the Project Site for the
Year 2013 and 2016
Particulars

Description
Current (Year
2013)

Demand for Organized Retail in the Catchment of the Project Site

(sq. ft.)
Supply under the Organized Retail (sq. ft.)
Demand-Supply-Gap for Organized Retail (sq. ft.)
Potential Supply from Proposed Retail Mall (incl. Showroom
Space) on the Project Site as given by the Client (sq. ft.)
Percentage Utilization

Projected (Year
2016)

2,313,561

2,671,739

586,276

1,101,753

1,727,285

1,569,986

460,226

460,226

27%

29%

Source: Estimated based on Market Assessment and Primary Demand Assessment Surveys & Analysis; Jones Lang LaSalle;
April 2013

Based on the above, estimated utilization potential of the upcoming retail mall (incl.
showroom space) on the Project Site from the existing demand-supply-gap in the year
2013 is about 27% and the same for projected demand-supply-gap in the year 2016
(estimated year of operation of the mall on the Project Site) is about 29%. Optimal
utilization in terms of retail space concentration, from the normative market benchmarks
available in tier-1 cities in India is estimated to be 15-20%. Considering normative
benchmark of tier-1 cities, estimated utilization of the proposed mall on the Project Site is
on the higher side. Since Thrissur retail market is in the beginning of transformation to
organized retail and considering the fact that the proposed mall is positioned as city-mall,
Consultants are of the opinion that the percentage utilization of 25-30% can be considered
as favorable provided the proposed mall is well designed, appropriately positioned with
suitable merchandize mix, appropriately priced and well managed during the entire period
of operation.
Thus, conceptualization, design, amenities, positioning, mechanize mix, pricing and
mall management plays a critical role in ensuring the success of the proposed retail
mall on the Project Site.

8.5

BROAD TENANT MIX AND POSITIONING

Location Preference
The retail mix for the proposed mall on the Project Site is worked out from the location
preference of various retail categories as expressed during the retailers surveys and is
presented in the table in the following page.

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Table 8.6: Location Preference of Retail Categories within the Mall as Indicated by the Retailers in Thrissur
Categories

Apparel

Footwear

Home
Furnishing

F&B

Accessories

Jewellery

Gifts

Electronics

Supermarket

Music

Multiplex

Apparel
Footwear
Home
Furnishing
F&B
Accessories
Jewellery
Gifts
Electronics
Supermarket
Music
Multiplex
Legend

Less Preference

Moderate Preference

High Preference

In order to achieve optimal favorable mix, it is important to position the retail categories within the mall based on their preference as these
preferences indicate inter-dependency and complementing characteristics of each of the retail categories in flourishing and sustaining the
business. For example, earmarking a store for footwear category along with apparel, gifts category along with footwear, and gifts category along
with footwear will help in creating induced buying behavior among the shoppers. Many a times similar category shops are placed together like
apparel next to apparel etc. which helps the consumer in quicker decision making, understanding the location of all categories and creating
efficient circulation system.
It is recommended to consider above location preferences indicated by the retailers while determining the tenant/merchandise mix
and their position within the mall.
A tentative tenant mix indicating the above preferences for the retailers and positioning within the mall is provided in the Annexure 10.4

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Final Report
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Potential Formats and Brands

As per the current retail scenario in India, a mall development may be broadly divided into three major shop formats, viz. Large, Medium and
Small. The percentage distribution of each format depends upon the scale of development and the mall positioning. Each format has a specific
role to play within the mall and the success of a mall is largely determined by the efficient design, circulation, category break-up and percentage
distribution of shop formats across the mall area. The major categories and brands present across different formats are presented in the table
below.
Table 8.7: Potential Formats and Brands for Proposed Retail Mall on the Project Site
Sl.
No.
1.

2.

Format
Large
Format
Anchors

Medium
Format
Mini
Anchors

Type of Retail
Categories

Typical Sizes
(sq. ft.)

Department
Store

15,000- 20,000

Westside

Saga, Marks & Spencers, Shoppers Stop, Landmark

International, Pantaloon Retail, Central, Fashion
Station, Depot and Star India Bazaar

Hypermarket

30,000-100,000

Big Bazaar, Spencer and Lulu Hyper Market

Wal-Mart, HyperCity, Spar and Shoprite

Multiplex

15,000- 50,000

Q Cinemas, Cinemax & PVR Cinemas

Big Cinemas, Prasads IMAX, Cinepolis, DT Cinemas,

E-Square, SRS Cinemas, City Gold Cinemas,

Home
Furnishings

10,000-15,000

Home Town, Dream Dcor, Impression Furniture and

Style Spa Furniture

Home stop & Center, Home Dcor, Splash, Zurai

Furniture, Aanantaa, 48 Craft, Riviera Home, Deco
Window, Eco Cornor, Fablooms, Handloom Wala,
Jovana Life Style, House This, Litte India, Kabadi,
Rope, Shibori, Silver Queen, Saprose, United Floor,
Salona Bichona, MOM Italy, Evok, Durian, Damro,
Housefull, Usha Lexus and Zyne and Reliance Living

Electronics

7,000-12,000

Reliance Digital, Sony Center/ Sony Exclusive Store

Chroma, Apple and E-Zone

Fine Dine

5,000-7,000

24 Carat Restaurant, Chak De Restaurant, Rice N

Spice, Abad Food Court, Mainland China, Nila, Fort
Kitchen, Wow Momo, Zaki, Havourit and BTH

Saffron, Taj Coromandel, Rang Mahal, Hard Rock

Cafes, California Pizza Kitchen, Oh! Calcutta and
Masala Zone

Apparel

5,000-10,000

Palathra Fashion-Diya, MAX Retail, Reliance Trends,

Grafitti Clothing, Mantra, Anarkali,

Van Heusen, True Religion, Dolce & Gabbana,

Versace, Armani, Killer and Raymonds and Park
Avenue

Reliance Foot Print,

Liberty, Bata, Red Tape, M&B, Mochi, Metro,

Footwear

Brands having Presence in Kerala

Brands having Presence in India in General and

South India in Particular

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

Sl.
No.

3.

Format

Small
Format
Inline Stores
/ Vanilla

Final Report
- 103 -

Type of Retail
Categories

Typical Sizes
(sq. ft.)

Brands having Presence in Kerala

Brands having Presence in India in General and

South India in Particular
Citywalk, Khadims and Lakhani

Super Market

10,000-15,000

Food Bazaar, More, Nilgiris, Varkeys

Entertainment

4,000-8,000

Amoeba, Boomerang, Reliance Time Out, Toons,

Dashing Car, Cross Word, Sparkys

Healthcare

3000-6000

VLCC, Lakme Beauty Salon

Jawed Habib Hair & Beauty Salon, Shahnaz

Husain Spas and Salons, Naturals Unisex Salon
and Spa, Loreal Professionnel Salons, Star &
Sitara Salon, Affinity Salon, Trends Hair & Style
Salon,

Jewellery

5,000-15,000

Jili Diamonds, Alapatt Gold, Millinium Gold, Mahar

Silverware, Josco, Bhima Jewellary, Malabar Gold,
Artique Diamond & Jewels, Avatar,

Gitanjali Jewels, Nakshatra, Asmi, D,damas,

Reliance Jewellery, Abharan jewelers and Saakshi
jewelry

Branded shops
under all retail
categories like
Apparel,
Footwear, Gifts,
etc.

1,000- 2,500

KFC, Pizza Hut, Baskin & Robbins, Skei Ice Cream,

Arabian Mashwi, Chimes, Iceberg, Pepe Jeans,
Wrangler, Swiss Time, Pantaloons, Planet Fashion,
Wild Craft, Thomson Music, Levis, Peter England,
Ayesha, Lee, Jockey, Music World, Fast Track,
Archies Gallery, Adidas, Hi Design, Navigator, Fab
India, American Tourister, Venfield, John Miller, Linen
by Bugoyne, Baby Planet, Laura Saloon, Body Art,
Citizen & Tissot, Samsonite, Woodland, Gini & Jony,
Titan, Nike, US Polo Flying Machine, Casio, Scarlett,
Nokia, Addidas, Puma, Identiti, Cannon, Basic Life, KLounge, Doc & Mark, Time Factory, Souls, HP, Aircel,
Coffee Lounge, Candy Treats, Cookie Man, Juice
Bites, Pop King, Arrow, Blackberry, Cafe Coffee Day,
Catmoss, Catwalk, Chicking, Cox& Kings, Domino's
Pizza, Gold's Gym, JBL, KIDZEE, Koutons, Lawrence
& Mayo, Lilliput, Music World, Noodle King, Rado,
Rangoli, Reebok, Samsonite, Spykar, Zodiac, Wills
Lifestyle, Yatra, Just Books, Beurer, The Body Shop,

Food World, Reliance Mart and Mega Mart

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

Sl.
No.

Format

Type of Retail
Categories

Typical Sizes
(sq. ft.)

Final Report
- 104 -

Brands having Presence in Kerala

Brands having Presence in India in General and

South India in Particular

Celio, Ethnic Marigold, Kaati zone, Omega,

McDonalds, Punjabi Libas, Rolex, Seiko, Soch and
Samsung etc.
The above table indicates that there is larger presence of national and international retail brands in Kerala. The brands having presence in
Kerala are easy to target for the proposed mall on the Project Site as these brands are familiar about doing business in the State and makes
business sense for these brands to look at other cities like Thrissur as part of their expansion as most of these brands have larger presence in
operational malls in Kochi.
There are several leading national and international brands having large presence in India in general and South India in particular. These
brands may also be targeted for the proposed mall on the Project Site as these brands typically evaluate availability of suitable space meeting
their brand standards to formulate their business plans for expansion to new territories and geographies.

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

Final Report
- 105 -

DEVELOPMENT MIX, BUSINESS PLAN AND

FINANCIAL FEASIBILITY ASSESSMENT

9.1

PROPOSED DEVELOPMENT MIX ON THE PROJECT SITE

As stated earlier, the Client intends to develop a mixed-use development mix on the
Project Site, comprising of a shopping mall, office and showroom spaces, hotel as well as
residential apartments with the construction taking place in phases (in 3 phases). Tentative
phasing of the development is given below:

Phase I: Proposed to have a Retail Mall of 316,143 sq. ft. of built-up area within FAR
and Commercial Block containing 224,223 sq. ft. of built-up area within FAR for both
showroom space & commercial / office space on warm shell basis. The entire Phase I
is expected to be spread over 4.46 acres land extent;

Phase II: Proposed to have a Hotel Block and Convention Center Block. The Phase II
development is expected to be spread over 6.84 acres land extent; and

Phase III: This phase of development is expected to be only residential apartment.

Land extent is yet to be finalized for the same.

Based on the area statement shared by the Client for the first phase, the Project Site,
proposed development is envisaged over a land area of about 4.46 acres (194,276 sq. ft.)
comprising Retail Mall, Showroom Space and Office Space. The table below summarizes
the break-up of area statement.
Table 9.1: Break-Up of Area Statement for First Phase Development on the Project Site
Sl.
No.

Uses

Built-Up Area within FAR

1.

Retail Mall with

Multiplex

29,370.65

316,143

Planned from First Floor to Sixth Floor as a

Standalone Building with a small portion on
the Ground Floor and Terrace Floors also.

2.

Showroom

13,385.73

144,083

Planned from First Floor to Fifth Floor

3.

Office

7,445.25

80,140

Total

50,201.63

540,366

(sq. m.)

Description

(sq. ft.)

Planned from Sixth Floor to Tenth Floor above

the Showroom Space

Source: As given by the Client

Based on the above area statement, FAR area is about 50,201.63 sq. m., which translates
into 540,366 sq. ft., which translates into utilized FAR of 2.78 on land extent of 4.46 acres
(i.e. 194,276 sq. ft.). Total built-up area including service areas, common areas, parking,
etc. works out to 956,150 sq. ft.
Detailed assessment for components proposed under Phase I development comprising
Retail Mall incl. Showroom Space and Commercial / Office Space is presented in the
earlier chapters. This chapter presents the overall project configuration, development
phasing, key cost & revenue assumptions, detailed business plan and key financial
indicators & sensitivity analysis leading to financial feasibility.

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

9.2

Final Report
- 106 -

OVERALL PROJECT CONFIGURATION

9.2.1 BUILT-UP AREA AND SALEABLE AREA STATEMENT

The table below presents the suggested and/or validated product mix along with built-up
area and saleable / leasable area statement for first phase development on the Project Site.
Table 9.2: Product Mix and Built-Up Area and Saleable / Leasable Area Statement for the
First Phase of the Development on the Project Site
Sl.

Activity / Product Mix

Built-Up Area
within FAR (sq.
ft.)

Proportion with
respect to the
Project

Saleable /
Leasable Area
(sq. ft.)

A. Retail Mall with Multiplex

1.

Retail Space
Sub-Total (A)

316,143

58.51%

336,614

316,143

58.51%

336,614

144,083

26.66%

157,703

80,140

14.83%

87,715

224,223

41.49%

245,418

540,366

100.00%

582,032

B. Showroom and Office

1.

Showroom Space

2.

Office Space
Sub Total (B)
Grant Total

Note: Loading of 6.48% and 9.45% is applied on retail and showroom & office space built-up area to arrive at saleable area as
per the common area calculations given by the Client
Source: As given by the Client

9.2.2 CAR PARKING PROVISION

Car parking is provided as per the prevailing development control regulations applicable for
different type of activities as indicated by the Client. Total of about 701 Car Parking Units
(CPU) are provided for the First Phase of development on the Project Site. The table below
summarizes car parking provided under the Project Site for the First Phase development,
distributed on proportionate basis.
Table 9.3: Car Parking Provision for the First Phase of the Development on the Project Site
Sl.

Activity / Product Mix

Proposed Standard

No. of Car
Parking Units

Total Area under Car

Parking (sq. ft.)

A. Retail Mall with Multiplex

1. Retail Mall

1 CPU for 819 sq. ft.

Sub-Total (A)

386

207,908

386

207,908

B. Showroom and Office

1. Showroom Space

1 CPU for 713 sq. ft.

202

109,198

2. Office Space

1 CPU for 709 sq. ft.

113

60,737

315

169,936

701

377,843

Sub Total (B)

Grant Total

Above parking provision is provided under 2 basements and ground floor as indicated by
the Client.

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

Final Report
- 107 -

9.2.3 DEVELOPMENT PHASING

The Commercial Operation Date (COD) is expected to be 3 years from the date of
commencement of the construction. The table below presents development phasing of
various project components.
Table 9.4: Proposed Development Phasing for the Project Site
Sl.

Activity / Product Mix

Development Phasing
Year 1

Year 2

Year 3

A. Retail Mall with Multiplex

Year 4

Year 5

Year 6

Expected COD

1. Retail Mall
B. Showroom and Office
1. Showroom Space
2. Office Space
Entire project is proposed to be executed in one phase with development phasing over 3
years period.
Detailed business plan has been prepared for the entire project and financial feasibility has
been explored for the entire project on EBIDT basis. However, bankability indicators (for
debt financing) have been prepared on post-tax basis.
Key assumptions used in the business plan, consolidated business plan, feasibility and
bankability indicators are presented in the next section.

9.3

KEY COST AND REVENUE ASSUMPTIONS

The table below presents some of the key cost and revenue assumptions used in the
business plan. Most of the assumptions have been made based on the prevailing market
conditions and market practices of the Thrissur real estate market and/or construction
industry.
Table 9.5: Key Cost and Revenue Assumptions used for Business Plan for the Project Site
Parameters

Assumptions

Remarks / Basis

CAPITAL EXPENDITURE / COST ASSUMPTIONS

Land
Development
Cost

INR 36 per sq. ft. on built-up area / FAR bass. (This

component comprises site leveling & grading, laying
trunk infrastructure within the Project Site like water
supply, sewerage, drainage, power, streetlights, etc. - worked out considering INR 100 per sq. ft. on plot
area basis)

This ranges between INR 75-100

per sq. ft. on plot area basis
depending upon the site
conditions.

Sanction Fees
and Cost of
Approvals

INR 35 per sq. ft. for commercial development

(Comprises cost of approvals like sanction plan
approval fee & other administrative expenses)

To be considered on the built-up

area basis. Cost considered as
per the prevalent market
practice.

Deposits
Payable to
Civic
Authorities

INR 74 per sq. ft. for (Comprises deposits payable to

civic authorities like Electricity & Water Supply for
taking necessary service connections & other
administrative expenses)

To be considered on the built-up

area basis. Cost considered as
per the prevalent market
practice.

Cost

7% per annum

Assuming 5% average inflation

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

Parameters

Final Report
- 108 -

Assumptions

Escalation

Remarks / Basis
and 2% for increase in cost of
materials.

Car Parking

Car parking average estimated based on car parking

configuration on 2 basements and Ground Floor.
Average for the proposed development works out to
INR 750 per sq. ft.

As prevalent in Thrissur Real

Estate market

Organized
Retail Mall &
Multiplex

INR 2,175 per sq. ft. on built-up area basis. Tentative

broad break-up is given below:
Civil Works - INR 1,000 per sq. ft.
High-side Electrical - INR 200 per sq. ft.
Air-Conditioners - INR 200 per sq. ft.
Fire Hydrants - INR 80 per sq. ft.
False Ceiling * - INR 53 per sq. ft.
Flooring * - INR 140 per sq. ft.
Genset - INR 120 per sq. ft.
Lifts & Escalators - INR 250 per sq. ft.
Security - INR 10 per sq. ft.
Low-side Electrical * - INR 123 per sq. ft.

Includes civil works, high-side

electrical, air-conditioning for
entire mall, fire hydrants, power
back-up, lifts & escalators,
security and common area
finishing with false ceiling,
flooring & low-side electrical.
Common area considered as
35% of built-up area

* Expenses accounted for only common areas, which is

estimated to be about 35% of the area

Showroom and
Office Space
on Warm Shell
Basis

INR 1,760 per sq. ft. on built-up area basis. Tentative

broad break-up is given below:
Civil Works - INR 950 per sq. ft.
High-side Electrical - INR 175 per sq. ft.
Air-Conditioners - INR 200 per sq. ft.
Fire Hydrants - INR 80 per sq. ft.
False Ceiling * - INR 20 per sq. ft.
Flooring * - INR 80 per sq. ft.
Genset - INR 120 per sq. ft.
Lifts - INR 85 per sq. ft.
Security - INR 10 per sq. ft.
Low-side Electrical * - INR 40 per sq. ft.

Includes civil works, high-side

electrical, air-conditioning for
entire building, fire hydrants,
power back-up, lifts, security and
common area finishing with false
ceiling, flooring & low-side
electrical. Common area
considered as 20% of built-up
area

* Expenses accounted for only common areas, which is

estimated to be about 20% of the area

Preliminary
and
Preoperative
Costs

15% (Includes expenses required for a) feasibility

study & design consultancy (4%); b) project
management costs (2%); c) publicity, advertisement
and marketing expenses (2%); d) miscellaneous /
administrative expenses (2%); and e) contingency
expenses (5%))

Expressed as percentage of the

Construction Cost

REVENUE ACCOUNT ASSUMPTIONS

Organized
Retail &
Multiplex

Weighted Average Lease Rent - INR 48 per sq.

ft. per month on leasable/chargeable area basis.
Average lease rent as on the date of assessment
- year 2013)
Car Parking Charges - INR 1,500 per CPU per
month
Price Appreciation during Construction - 5% per

Please refer to Section

6.3.2; Table 6.7 (Page 81)
for achievable average
lease rent for the retail mall
Other assumptions are as
per the market practice for
retail developments in

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

Parameters

Assumptions

Showroom
Space on
Warm Shell
Basis

Final Report
- 109 -

Remarks / Basis

annum from the base year (i.e. year of

assessment - year 2013) till the completion of
construction 3 years)
Price Appreciation during Operation - 15% every
3 years from the year of completion of
construction
Price appreciation is applicable for both leasable
area and car parking
Interest on Deposits - Deposits assumed as
average of 10 months rentals with interest
earned on the same at 8% per annum
Non-Occupancy Cost - 5% per annum on
average
Sale Costs and Overheads - 2% of total receipts
Mall Management Charges - 2% of the total
receivables from the Mall
Insurance Premium - assumed as 0.15% of the
development cost estimated, increasing at 5%
per annum from the year of operation.
Property Tax - assumed as INR 10 per sq. ft. per
annum, increasing at 5% per annum from the
year of operation.
Occupancy during first year of operation
assumed at 80% and that of second & third year
assumed at 90% & 100% respectively.
Stabilization occupancy at 100% from fourth year
of operation.
Weighted Average Lease Rent - INR 43 per sq.
ft. per month on leasable/chargeable area basis.
Average lease rent as on the date of assessment
- year 2013)
Car Parking Charges - INR 1,500 per CPU per
month
Price Appreciation during Construction - 5% per
annum from the base year (i.e. year of
assessment - year 2013) till the completion of
construction 3 years)
Price Appreciation during Operation - 15% every
3 years from the year of completion of
construction
Price appreciation is applicable for both leasable
area and car parking
Interest on Deposits - Deposits assumed as
average of 10 months rentals with interest
earned on the same at 8% per annum
Non-Occupancy Cost - 5% per annum on
average
Sale Costs and Overheads - 2% of total receipts
Insurance Premium - assumed as 0.15% of the
development cost estimated, increasing at 5%
per annum from the year of operation.

Thrissur

Please refer to Section

6.3.2; Table 6.7 (Page 81)
for achievable average
lease rent for the large
format stores and
showroom space
Other assumptions are as
per the market practice for
large showroom
developments in Thrissur

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

Parameters

Assumptions

Office Space
on Warm Shell
Basis

Common Area
Management
(CAM)
Charges

Final Report
- 110 -

Remarks / Basis

Property Tax - assumed as INR 10 per sq. ft. per

annum, increasing at 5% per annum from the
year of operation.
Occupancy during first year of operation
assumed at 80% and that of second & third year
assumed at 90% & 100% respectively.
Stabilization occupancy at 100% from fourth year
of operation.
Weighted Average Lease Rent - INR 42 per sq.
ft. per month on leasable/chargeable area basis.
Average lease rent as on the date of assessment
- year 2013)
Car Parking Charges - INR 1,500 per CPU per
month
Price Appreciation during Construction - 5% per
annum from the base year (i.e. year of
assessment - year 2013) till the completion of
construction 3 years)
Price Appreciation during Operation - 15% every
3 years from the year of completion of
construction
Price appreciation is applicable for both leasable
area and car parking
Interest on Deposits - Deposits assumed as
average of 10 months rentals with interest
earned on the same at 8% per annum
Non-Occupancy Cost - 5% per annum on
average
Sale Costs and Overheads - 2% of total receipts
Insurance Premium - assumed as 0.15% of the
development cost estimated, increasing at 5%
per annum from the year of operation.
Property Tax - assumed as INR 10 per sq. ft. per
annum, increasing at 5% per annum from the
year of operation.
Occupancy during first year of operation
assumed at 50% and that of second & third year
assumed at 70% & 90% respectively.
Stabilization occupancy at 100% from fourth year
of operation.

Assumed as pass-on cost and not used in the

business plan

Please refer to Section

6.3.3; Table 6.8 and 6.9
(Page 82-83) for achievable
average lease rent for the
office space of all formats &
sizes
Other assumptions are as
per the market practice for
large showroom
developments in Thrissur

Client would collect this charge

from the tenants and utilizes the
same for CAM

OTHER ASSUMPTIONS
Depreciation
Schedule

Rates as per Indian Companies Act using StraightLine Method

Buildings - 3.34%
Plants & Machinery - 10.34%
Air Conditioning - 4.75%

Depreciation benefits are

accounted for the entire project
cost individual component-wise.

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

Parameters

Assumptions

Final Report
- 111 -

Remarks / Basis

Miscellaneous Assets - 6.33%

Weighted Average Depreciation Asset-Class-wise
Retail Development (Shopping Mall-cumMultiplex) - 4.88%
Showroom and Office Space on Warm Shell
Basis - 4.51%
Capital
Structuring and
Taxation

Capitalization
Rates

Financial analysis and indicators are presented

on EBIDT (earnings before interest, depreciation
and tax) basis as well as post-tax
Post-tax business plan with Debt-Equity
structuring of 1:1 is proposed for the proposed
development.
Applicable Taxation considering as Business
Income
o Corporate Tax - 30% of taxable income
o Surcharge - 5% of Corporate Tax
o Education Cess - 3% of Corporate Tax
o Effective Tax Component - 32.45% of
the taxable income.

Structuring as agreed with the

Client
Taxation as per the Indian
Income Tax Act considering the
asset as House Property,
without any tax-efficiency
measures.

Retail Development & Multiplex - 12%

Showroom and Office Space on Warm Shell
Basis - 11%
Car parking under respective asset classes are
capitalized with same capitalization rates as that
of the asset class

As prevalent in the market based on market assessment

INR 50 Million per Acre, which translates into

INR 1,148 per sq. ft.
Total land value works out to INR 223.03 million
for 4.46 acres land under the First Phase
development

Tentative market value based on

market assessment

LAND VALUE
Tentative
Market Value
of the Land

CAPITAL STRUCTURING
Financing and
Debt Terms
and Conditions

Combination of debt and equity in the ratio of

approximately 1:1
Debt Terms & Conditions
o Construction Finance
Drawdown - 12 quarters
Principle moratorium - 12
quarters
Repayment - through Lease
Rent Discounted (LRD) Loan
post operation
Rate of Interest - 14% per
annum
o LRD Finance
Repayment period - 10 years
Rate of Interest - 13% per
annum (100 bps discount on

Debt terms & conditions as

prevalent for commercial real
estate project based on their
discussion with the financial
institution.

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

Parameters

Assumptions

9.4

Final Report
- 112 -

Remarks / Basis

construction loan)
Ballooned payment
considering debt service
coverage ratio of 1.50

ESTIMATED PROJECT COST

Based on above key capital cost assumptions and built-up area statement detailed above,
the estimated project cost for the first phase of the proposed development on the Project
Site is summarized in the table below:
Table 9.6: Estimated Project Cost for the Proposed First Phase Development on the
Project Site
Sl.

9.5

Activity / Product Mix

Built-Up Area
(within FAR)
(sq. ft.)

Unit Gross Development Total Estimated Project

Cost (INR per sq. ft.)
Cost (INR Million)

1. Retail Mall with Multiplex

316,143

3,478

1,099.50

2. Showroom and Office Space

224,223

3,052

684.43

Grant Total

540,366

1,783.93
Total Development Cost

1,783.93

Add: Interest during Construction

224.00

Add: Land Value as per the Books

223.03

Total Estimated Project Cost (incl. Land Value and Interest during
Construction)

2,230.96

CAPITAL STRUCTURING AND DEBT REPAYMENT SCHEDULE

As stated above, the capital structuring for the proposed development envisages sources
of fund from following sources:
INR 1,100 million through debt from financial institutions, which translates into 49.31%
of the estimated Project Cost for the development under the First Phase; and
Balance INR 1,130.96 million through equity contribution by the Client, which translates
into 50.69% of the estimated Project Cost for the development under the First Phase.
Summary of the proposed capital structuring for the First Phase development is presented
in the table below.
Table 9.7: Capital Structuring Used in the Business Plan for the First Phase of
Development on the Project Site
Sl.
No.

Sources of Funds

Percentage of the Total

Project Cost

Amount (INR
Million)

1.

Debt Financing from the Financial Institutions

49.31%

1,100.00

2.

Equity Contribution from the Client

50.69%

1,130.96

100.00%

2,230.96

Total

Below are the debt related assumptions used in the business plan for the proposed
development under the First Phase based on the commercial real estate project financing
terms & conditions based on the discussions with the leading financial institutions.

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

Final Report
- 113 -

Construction Finance
o Drawdown - 12 quarters
o Principle moratorium - 12 quarters
o Repayment - through Lease Rent Discounted (LRD) Loan post operation
o Rate of Interest - 14% per annum
LRD Finance
o Repayment period - 10 years
o Rate of Interest - 13% per annum (100 bps discount on construction loan)
o Ballooned payment considering debt service coverage ratio of 1.50

Following table presents debt drawdown and repayment schedule based on the above
capital restructuring for the proposed First Phase development on the Project Site.

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

Final Report
- 114 -

Table 9.8: Capital Structuring, Debt Repayment Schedule and Debt Indicators for the First Phase Proposed Development on the Project Site
(Year 1 to Year 8)
Particulars

Inputs

Total Development Cost

Total

Unit

Y1

Y2

Y3

Y4

Y5

Y6

Y7

Y8

1,783.93

INR Million

392.56

672.16

719.21

224.00

INR Million

24.50

73.50

126.00

223.03

INR Million

223.03

2,230.96

INR Million

640.09

745.66

845.21

50.69%

1,130.96

INR Million

290.09

395.66

445.21

49.31%

1,100.00

INR Million

350.00

350.00

400.00

Opening Balance

INR Million

350.00

700.00

1,100.00

1,070.64

1,015.42

931.53

805.88

Loan Receipts

INR Million

350.00

350.00

400.00

Loan Repayment

INR Million

29.36

55.23

83.88

125.65

134.31

Closing Balance

INR Million

350.00

700.00

1,100.00

1,070.64

1,015.42

931.53

805.88

671.57

1,054.46

INR Million

24.50

73.50

126.00

141.09

135.59

126.55

112.93

96.03

24.50

73.50

126.00
141.09

135.59

126.55

112.93

96.03

Interest Service Ratio

1.95

2.35

2.85

3.73

4.38

Debt Service Ratio

3.90

2.73

2.25

1.95

1.91

Interest during
(Capitalized)

Construction

Estimated Tentative
Value of the Land

Market

223.03

Total Project Cost

Capital Structuring / Funding
Equity
Contribution
Developer

by

Debt by a Financial Institution

Debt Schedule

Interest
Total Interest on the Debt
Component
Interest during Construction

14.00%

224.00

INR Million

Interest during Operation

13.00%

830.46

INR Million

Key Debt Financing Indicators

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

Particulars

Inputs

Total

Unit

Final Report
- 115 -

Y1

Y2

Y3

Y4

Debt Service Coverage Ratio

Y5

1.50

Y6

1.50

Y7

1.50

Y8

1.50

1.53

Table 9.9: Capital Structuring, Debt Repayment Schedule and Debt Indicators for the First Phase Proposed Development on the Project Site
(Year 9 to Year 15)
Particulars

Inputs

Total Development Cost

Total

Unit

Y9

Y10

Y11

Y12

Y13

Y14

Y15

1,783.93

INR Million

224.00

INR Million

223.03

INR Million

2,230.96

INR Million

50.69%

1,130.96

INR Million

49.31%

1,100.00

INR Million

Opening Balance

INR Million

671.57

537.26

402.94

268.63

134.31

Loan Receipts

INR Million

Loan Repayment

INR Million

134.31

134.31

134.31

134.31

134.31

Closing Balance

INR Million

537.26

402.94

268.63

134.31

1,054.46

INR Million

78.57

61.11

43.65

26.19

8.73

78.57

61.11

43.65

26.19

8.73

Interest during
(Capitalized)

Construction

Estimated Tentative
Value of the Land

Market

223.03

Total Project Cost

Capital Structuring / Funding
Equity
Contribution
Developer

by

Debt by a Financial Institution

Debt Schedule

Interest
Total Interest on the Debt
Component
Interest during Construction

14.00%

224.00

INR Million

Interest during Operation

13.00%

830.46

INR Million

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

Particulars

Inputs

Total

Unit

Final Report
- 116 -

Y9

Y10

Y11

Y12

Y13

Y14

Y15

Key Debt Financing Indicators

9.6

Cash Profit (Net Cash Accruals

- Loan Repayment)

INR Million

133.02

193.75

205.09

216.40

284.47

424.16

5,227.03

Project Cash Flows (including

Land Cost) - EBIDTA

INR Million

420.60

484.72

484.18

483.61

557.34

556.72

5,359.49

Equity Cash Flows (including

Land Cost) of the Project

INR Million

133.02

193.75

205.09

216.40

284.47

424.16

5,227.03

Interest Service Ratio

5.35

7.93

11.09

18.46

63.84

Debt Service Ratio

1.99

2.44

2.53

2.61

3.12

Debt Service Coverage Ratio

1.62

1.99

2.15

2.35

2.99

FINANCIAL ANALYSIS AND BUSINESS PLAN FOR THE PROPOSED FIRST PHASE DEVELOPMENT

9.6.1 CONSOLIDATED BUSINESS PLAN FOR THE ENTIRE FIRST PHASE DEVELOPMENT
Considering the overall development and revenue stabilization period, business plan is prepared for the 15 years period and factored exit
valuation (terminal cash flow) at the end of 15 years period. The tables below present the consolidated business plan for the proposed First
Phase development on the Project Site on both EBIDTA and post-tax basis.
Table 9.10: Business Plan for the First Phase Proposed Development on the Project Site (Year 1 to Year 8) - Consolidated
Particulars

Inputs

Total

Unit

Y1

Y2

Y3

Y4

Y5

Y6

Y7

Y8

Capital Account
Capital Expenditure
Retail Mall with Multiplex
Showroom and Office
Total Development Cost

1,099.50

INR Million

239.95

415.25

444.31

684.43

INR Million

152.61

256.91

274.90

1,783.93

INR Million

392.56

672.16

719.21

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

Particulars
Interest during
(Capitalized)

Inputs

Construction

Total

Unit

Final Report
- 117 -

Y1

Y2

Y3

Y4

Y5

Y6

Y7

Y8

73.50

126.00

224.00

INR Million

24.50

223.03

INR Million

223.03

2,230.96

INR Million

640.09

745.66

845.21

Retail Mall with Multiplex

3,458.55

INR Million

188.48

212.03

235.59

270.93

270.93

Showroom and Office

2,227.75

INR Million

106.92

127.72

148.55

177.06

177.06

Total Net Revenue Receipts

5,686.30

INR Million

295.40

339.75

384.14

448.00

448.00

249.50

INR Million

14.23

15.65

17.08

19.12

19.39

96.59

INR Million

5.41

5.99

6.57

7.33

7.51

346.09

INR Million

19.64

21.64

23.66

26.44

26.91

5,340.21

INR Million

275.76

318.11

360.49

421.56

421.09

4,803.43

INR Million

7,912.69

INR Million

(640.09)

(745.66)

(845.21)

275.76

318.11

360.49

421.56

421.09

50.69%

1,130.96

INR Million

290.09

395.66

445.21

49.31%

1,100.00

INR Million

350.00

350.00

400.00

INR Million

350.00

700.00

1,100.00

1,070.64

1,015.42

931.53

805.88

Estimated Tentative
Value of the Land

Market

223.03

Total Project Cost

Revenue Account
Receipts

Expenditure
Retail Mall with Multiplex
Showroom and Office
Total Revenue Expenditure
Gross
Operating
(EBIDTA Basis)

Profit

Add: Terminal Cash Flow

Net Cash Accruals
EBIDTA Basis)

(on

Capital Structuring / Funding

Equity
Contribution
Developer
Debt by a Financial Institution

by

Debt Schedule
Opening Balance

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

Particulars

Inputs

Total

Unit

Final Report
- 118 -

Y1

Y2

Y3

Y4

Y5

Y6

Y7

Y8

Loan Receipts

INR Million

350.00

350.00

400.00

Loan Repayment

INR Million

29.36

55.23

83.88

125.65

134.31

Closing Balance

INR Million

350.00

700.00

1,100.00

1,070.64

1,015.42

931.53

805.88

671.57

1,054.46

INR Million

24.50

73.50

126.00

141.09

135.59

126.55

112.93

96.03

24.50

73.50

126.00
141.09

135.59

126.55

112.93

96.03

Interest
Total Interest on the Debt
Component
Interest during Construction

14.00%

224.00

INR Million

Interest during Operation

13.00%

830.46

INR Million

5,340.21

INR Million

275.76

318.11

360.49

421.56

421.09

830.46

INR Million

141.09

135.59

126.55

112.93

96.03

1,014.01

INR Million

84.50

84.50

84.50

84.50

84.50

86.01

INR Million

5.40

5.67

5.96

6.26

6.57

3,089.74

INR Million

61.91

98.26

138.18

196.29

212.97

4,509.75

INR Million

134.67

182.52

233.93

308.62

325.05

1,002.47

INR Million

20.09

31.88

44.83

63.69

69.10

Net Profit (PAT)

3,507.28

INR Million

114.58

150.64

189.10

244.94

255.96

Add: Terminal Cash Flow

4,803.43

INR Million

Net Cash Accruals (Post Tax)

8,310.72

INR Million

114.58

150.64

189.10

244.94

255.96

INR Million

85.22

95.41

105.22

119.29

121.64

Calculation of Taxable Income

Gross/Net Operating Profit (on
EBIDTA basis)
Interest during Operation
Depreciation
Property Tax Payable
Taxable Income (PBT) Considering as 'House Property'

30%

Profit before Tax (PBT)

Deduct: Corporate Tax (incl.
Surcharge and Education Cess)

32.45%

Summary Cash Flows and

Key Financial Indicators
Cash Profit (Net Cash Accruals

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

Particulars
- Loan Repayment)

Inputs

Total

Unit

Final Report
- 119 -

Y1

Y2

Y3

Y4

Y5

Y6

Y7

Y8

Project Cash Flows (including

Land Cost) - EBIDTA

INR Million

(640.09)

(745.66)

(845.21)

275.76

318.11

360.49

421.56

421.09

Equity Cash Flows (including

Land Cost) of the Project

INR Million

(290.09)

(395.66)

(445.21)

85.22

95.41

105.22

119.29

121.64

Interest Service Ratio

1.95

2.35

2.85

3.73

4.38

Debt Service Ratio

3.90

2.73

2.25

1.95

1.91

Debt Service Coverage Ratio

1.50

1.50

1.50

1.50

1.53

Table 9.11: Consolidated Business Plan for the First Phase Proposed Development on the Project Site (Year 9 to Year 15) - Consolidated
Particulars

Inputs

Total

Unit

Y9

Y10

Y11

Y12

Y13

Y14

Y15

Capital Account
Capital Expenditure
Retail Mall with Multiplex

1,099.50

INR Million

684.43

INR Million

1,783.93

INR Million

224.00

INR Million

223.03

INR Million

2,230.96

INR Million

Retail Mall with Multiplex

3,458.55

INR Million

270.93

311.57

311.57

311.57

358.31

358.31

358.31

Showroom and Office

2,227.75

INR Million

177.06

203.62

203.62

203.62

234.17

234.17

234.17

Showroom and Office

Total Development Cost
Interest during
(Capitalized)

Construction

Estimated Tentative
Value of the Land
Total Project Cost

Market

223.03

Revenue Account
Receipts

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

Particulars

Inputs

Total Net Revenue Receipts

Total

Unit

Final Report
- 120 -

Y9

Y10

Y11

Y12

Y13

Y14

Y15

5,686.30

INR Million

448.00

515.20

515.20

515.20

592.48

592.48

592.48

249.50

INR Million

19.69

22.03

22.35

22.69

25.38

25.75

26.14

96.59

INR Million

7.71

8.45

8.67

8.90

9.75

10.01

10.27

346.09

INR Million

27.40

30.48

31.02

31.59

35.13

35.76

36.42

5,340.21

INR Million

420.60

484.72

484.18

483.61

557.34

556.72

556.06

4,803.43

INR Million

4,803.43

7,912.69

INR Million

420.60

484.72

484.18

483.61

557.34

556.72

5,359.49

50.69%

1,130.96

INR Million

49.31%

1,100.00

INR Million

Opening Balance

INR Million

671.57

537.26

402.94

268.63

134.31

Loan Receipts

INR Million

Loan Repayment

INR Million

134.31

134.31

134.31

134.31

134.31

Closing Balance

INR Million

537.26

402.94

268.63

134.31

1,054.46

INR Million

78.57

61.11

43.65

26.19

8.73

78.57

61.11

43.65

26.19

8.73

Expenditure
Retail Mall with Multiplex
Showroom and Office
Total Revenue Expenditure
Gross
Operating
(EBIDTA Basis)

Profit

Add: Terminal Cash Flow

Net Cash Accruals
EBIDTA Basis)

(on

Capital Structuring / Funding

Equity
Contribution
Developer

by

Debt by a Financial Institution

Debt Schedule

Interest
Total Interest on the Debt
Component
Interest during Construction

14.00%

224.00

INR Million

Interest during Operation

13.00%

830.46

INR Million

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

Particulars

Inputs

Total

Unit

Final Report
- 121 -

Y9

Y10

Y11

Y12

Y13

Y14

Y15

Calculation of Taxable Income

Gross/Net Operating Profit (on
EBIDTA basis)

5,340.21

INR Million

420.60

484.72

484.18

483.61

557.34

556.72

556.06

830.46

INR Million

78.57

61.11

43.65

26.19

8.73

1,014.01

INR Million

84.50

84.50

84.50

84.50

84.50

84.50

84.50

86.01

INR Million

6.90

7.24

7.60

7.98

8.38

8.80

9.24

3,089.74

INR Million

230.20

294.46

311.66

328.86

400.13

408.57

408.26

4,509.75

INR Million

342.02

423.60

440.52

457.42

548.61

556.72

556.06

1,002.47

INR Million

74.69

95.54

101.12

106.70

129.82

132.56

132.46

Net Profit (PAT)

3,507.28

INR Million

267.34

328.07

339.41

350.72

418.79

424.16

423.60

Add: Terminal Cash Flow

4,803.43

INR Million

4,803.43

Net Cash Accruals (Post Tax)

8,310.72

INR Million

267.34

328.07

339.41

350.72

418.79

424.16

5,227.03

Cash Profit (Net Cash Accruals

- Loan Repayment)

INR Million

133.02

193.75

205.09

216.40

284.47

424.16

5,227.03

Project Cash Flows (including

Land Cost) - EBIDTA

INR Million

420.60

484.72

484.18

483.61

557.34

556.72

5,359.49

Equity Cash Flows (including

Land Cost) of the Project

INR Million

133.02

193.75

205.09

216.40

284.47

424.16

5,227.03

Interest Service Ratio

5.35

7.93

11.09

18.46

63.84

Debt Service Ratio

1.99

2.44

2.53

2.61

3.12

Debt Service Coverage Ratio

1.62

1.99

2.15

2.35

2.99

Interest during Operation

Depreciation
Property Tax Payable
Taxable Income (PBT) Considering as 'House Property'

30%

Profit before Tax (PBT)

Deduct: Corporate Tax (incl.
Surcharge and Education Cess)

32.45%

Summary Cash Flows and

Key Financial Indicators

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

Final Report
- 122 -

9.6.2 BUSINESS PLAN FOR THE RETAIL MALL AND MULTIPLEX

Considering the overall development and revenue stabilization period, business plan is prepared for the 15 years period and factored exit
valuation (terminal cash flow) at the end of 15 years period. The tables below present the business plan for the retail mall & multiplex on EBIDT
basis.
Table 9.12: Business Plan for the First Phase Proposed Development on the Project Site (Year 1 to Year 8) - Retail Mall and Multiplex
Particulars

Inputs

Total

Unit

Y1

Y2

Y3

Y4

Y5

Y6

Y7

Y8

Capital Account
Construction Phasing

20%

40%

40%

0%

0%

0%

0%

0%

Capital Expenditure
Land Development Cost

36

11.37

INR Million

11.37

Sanction Fees and Cost of

Approvals

35

11.07

INR Million

11.07

Deposits Payable
Authorities

Civic

74

23.47

INR Million

23.47

Cost of Construction - Retail Mall

& Multiplex Space (excl. Car
Parking)

2,175

INR per sq.

ft.

2,175

2,327

2,490

2,664

2,851

3,051

3,264

3,493

Cost of Construction - Parking

750

INR per sq.

ft.

750

803

859

919

983

1,052

1,126

1,204

Escalation in Construction Cost

7%

to

Total
Construction
(including Parking)

Cost

Preliminary and Preoperative

Costs
(Percentage
of
Construction Costs)
Total Development Cost

916.17

INR Million

168.73

361.08

386.36

15%

137.43

INR Million

25.31

54.16

57.95

3,478

1,099.50

INR Million

239.95

415.25

444.31

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

Particulars

Inputs

Total

Unit

Final Report
- 123 -

Y1

Y2

Y3

Y4

Y5

Y6

Y7

Y8

Revenue Account
Absorption Rate of Leasable
Area
Leasable
Area

336,614

No. of
CPUs

386

0%

0%

0%

80%

90%

100%

100%

100%

sq. ft.

269,291

302,953

336,614

336,614

336,614

Nos.

309

347

386

386

386

Receipts
Weighted Average Lease Rent

48.00

INR per sq.

ft. per month

48.00

50.40

52.92

55.57

55.57

55.57

63.90

63.90

Car Parking Charges

1,500

INR per CPU

per Month

1,500

1,575

1,654

1,736

1,736

1,736

1,997

1,997

Rent Appreciation (once in 3

years)

15%

Gross Potential Revenues as

Lease Rent

3,294.98

INR Million

179.56

202.01

224.45

258.12

258.12

Gross Potential Revenues from

Car Parking Charges

118.07

INR Million

6.44

7.23

8.04

9.25

9.25

Interest on Deposits - Gross

Potential

8%

227.54

INR Million

12.40

13.95

15.50

17.82

17.82

Less: Revenue Loss due to NonOccupancy

5%

182.03

INR Million

9.92

11.16

12.40

14.26

14.26

3,458.55

INR Million

188.48

212.03

235.59

270.93

270.93

Total Net Revenue Receipts

Expenditure
Sales Costs and Overheads

2%

69.17

INR Million

3.77

4.24

4.71

5.42

5.42

Mall Management Charges

3%

103.76

INR Million

5.65

6.36

7.07

8.13

8.13

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

Particulars

Inputs

Total

Unit

Final Report
- 124 -

Y1

Y2

Y3

Y4

Y5

Y6

Y7

Y8

Property Tax

5%

50.32

INR Million

3.16

3.32

3.49

3.66

3.84

Insurance Premium

5%

26.25

INR Million

1.65

1.73

1.82

1.91

2.00

249.50

INR Million

14.23

15.65

17.08

19.12

19.39

Gross Operating Profit (EBIDT

Basis)

3,209.05

INR Million

174.25

196.37

218.51

251.82

251.54

Add: Terminal Cash Flow

2,768.05

INR Million

643.57

INR Million

53.63

53.63

53.63

53.63

53.63

Total Revenue Expenditure

Depreciation

4.88%

Table 9.13: Business Plan for the First Phase Proposed Development on the Project Site (Year 9 to Year 15) - Retail Mall and Multiplex
Particulars

Inputs

Total

Unit

Y9

Y10

Y11

Y12

Y13

Y14

Y15

Capital Account
Construction Phasing

0%

0%

0%

0%

0%

0%

0%

Capital Expenditure
Land Development Cost

36

11.37

INR Million

Sanction Fees and Cost of

Approvals

35

11.07

INR Million

Deposits Payable
Authorities

Civic

74

23.47

INR Million

Cost of Construction - Retail Mall

& Multiplex Space (excl. Car
Parking)

2,175

INR per sq.

ft.

3,737

3,999

4,279

4,578

4,899

5,241

5,608

Cost of Construction - Parking

750

INR per sq.

ft.

1,289

1,379

1,475

1,579

1,689

1,807

1,934

Escalation in Construction Cost

7%
-

Total
Construction
(including Parking)

to

Cost

916.17

INR Million

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

Particulars
Preliminary and Preoperative
Costs
(Percentage
of
Construction Costs)
Total Development Cost

Inputs

Total

Unit

Final Report
- 125 -

Y9

Y10

Y11

Y12

Y13

Y14

Y15

15%

137.43

INR Million

3,478

1,099.50

INR Million

100%

100%

100%

100%

100%

100%

100%

336,614

336,614

336,614

336,614

336,614

336,614

336,614

386

386

386

386

386

386

386

Revenue Account
Absorption Rate of Leasable
Area
Leasable
Area

336,614

No. of
CPUs

386

sq. ft.
Nos.

Receipts
Weighted Average Lease Rent

48.00

INR per sq.

ft. per month

63.90

73.49

73.49

73.49

84.51

84.51

84.51

Car Parking Charges

1,500

INR per CPU

per Month

1,997

2,296

2,296

2,296

2,641

2,641

2,641

Rent Appreciation (once in 3

years)

15%

Gross Potential Revenues as

Lease Rent

3,294.98

INR Million

258.12

296.84

296.84

296.84

341.36

341.36

341.36

Gross Potential Revenues from

Car Parking Charges

118.07

INR Million

9.25

10.64

10.64

10.64

12.23

12.23

12.23

Interest on Deposits - Gross

Potential

8%

227.54

INR Million

17.82

20.50

20.50

20.50

23.57

23.57

23.57

Less: Revenue Loss due to NonOccupancy

5%

182.03

INR Million

14.26

16.40

16.40

16.40

18.86

18.86

18.86

3,458.55

INR Million

270.93

311.57

311.57

311.57

358.31

358.31

358.31

Total Net Revenue Receipts

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

Particulars

Inputs

Total

Unit

Final Report
- 126 -

Y9

Y10

Y11

Y12

Y13

Y14

Y15

Expenditure
Sales Costs and Overheads

2%

69.17

INR Million

5.42

6.23

6.23

6.23

7.17

7.17

7.17

Mall Management Charges

3%

103.76

INR Million

8.13

9.35

9.35

9.35

10.75

10.75

10.75

Property Tax

5%

50.32

INR Million

4.03

4.24

4.45

4.67

4.90

5.15

5.41

Insurance Premium

5%

26.25

INR Million

2.10

2.21

2.32

2.44

2.56

2.69

2.82

249.50

INR Million

19.69

22.03

22.35

22.69

25.38

25.75

26.14

Gross Operating Profit (EBIDT

Basis)

3,209.05

INR Million

251.25

289.55

289.23

288.89

332.93

332.56

332.17

Add: Terminal Cash Flow

2,768.05

INR Million

2,768.05

643.57

INR Million

53.63

53.63

53.63

53.63

53.63

53.63

53.63

Total Revenue Expenditure

Depreciation

4.88%

9.6.3 BUSINESS PLAN FOR THE SHOWROOM AND OFFICE SPACE

Considering the overall development and revenue stabilization period, business plan is prepared for the 15 years period and factored exit
valuation (terminal cash flow) at the end of 15 years period. The tables below present the business plan for the showroom and office space on
EBIDT basis.
Table 9.14: Business Plan for the First Phase Proposed Development on the Project Site (Year 1 to Year 8) - Showroom and Office Space
Particulars

Inputs

Total

Unit

Y1

Y2

Y3

Y4

Y5

Y6

Y7

Y8

Capital Account
Construction Phasing

20%

40%

40%

0%

0%

0%

0%

0%

Capital Expenditure
Land Development Cost

36

8.06

INR Million

8.06

Sanction Fees and Cost of

Approvals

35

7.85

INR Million

7.85

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

Particulars
Deposits Payable
Authorities

Inputs
to

Civic

74

Cost of Construction - Showroom

& Office Space (excl. Car
Parking)

Total

Unit

Y1

Y2

Y3

Y4

Y5

Y6

Y7

Y8

INR Million

16.65

1,760

INR per sq.

ft.

1,760

1,883

2,015

2,156

2,307

2,468

2,641

2,826

Cost of Construction - Parking

750

INR per sq.

ft.

750

803

859

919

983

1,052

1,126

1,204

Escalation in Construction Cost

7%

Total
Construction
(including Parking)

Cost

Preliminary and Preoperative

Costs
(Percentage
of
Construction Costs)
Total Development Cost

16.65

Final Report
- 127 -

566.84

INR Million

104.39

223.40

239.04

15%

85.03

INR Million

15.66

33.51

35.86

3,052

684.43

INR Million

152.61

256.91

274.90

0%

0%

0%

80%

90%

100%

100%

100%

sq. ft.

126,162

141,933

157,703

157,703

157,703

Nos.

162

182

202

202

202

Revenue Account
Showroom Space
Absorption Rate of Leasable
Area
Leasable
Area

157,703

No. of
CPUs

202

Receipts
Weighted Average Lease Rent

43.00

INR per sq.

ft. per month

43.00

45.15

47.41

49.78

49.78

49.78

57.24

57.24

Car Parking Charges

1,500

INR per CPU

per Month

1,500

1,575

1,654

1,736

1,736

1,736

1,997

1,997

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

Particulars
Rent Appreciation (once in 3
years)

Inputs

Total

Unit

Final Report
- 128 -

Y1

Y2

Y3

Y4

Y5

Y6

Y7

Y8

15%

Gross Potential Revenues as

Lease Rent

1,382.89

INR Million

75.36

84.78

94.20

108.33

108.33

Gross Potential Revenues from

Car Parking Charges

61.80

INR Million

3.38

3.79

4.21

4.84

4.84

Interest on Deposits - Gross

Potential

8%

96.31

INR Million

5.25

5.90

6.56

7.54

7.54

Less: Revenue Loss due to NonOccupancy

5%

77.05

INR Million

4.20

4.72

5.25

6.04

6.04

IINR Million

79.79

89.75

99.72

114.68

114.68

0%

0%

0%

50%

70%

90%

100%

100%

sq. ft.

43,858

61,401

78,944

87,715

87,715

Nos.

57

79

102

113

113

Receipts - Showroom Space

Office Space
Absorption Rate of Leasable
Area
Leasable
Area

87,715

No. of
CPUs

113

Receipts
Weighted Average Lease Rent

42.00

INR per sq.

ft. per month

42.00

44.10

46.31

48.62

48.62

48.62

55.91

55.91

Car Parking Charges

1,500

INR per CPU

per Month

1,500

1,575

1,654

1,736

1,736

1,736

1,997

1,997

25.59

35.82

46.06

58.85

58.85

Rent Appreciation (once in 3

years)
Gross Potential Revenues as
Lease Rent

15%
720.57

INR Million

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

Particulars

Inputs

Gross Potential Revenues from

Car Parking Charges

Total

Unit

Final Report
- 129 -

Y1

Y2

Y3

Y4

Y5

Y6

Y7

Y8

33.17

INR Million

1.19

1.65

2.13

2.71

2.71

Interest on Deposits - Gross

Potential

8%

50.25

INR Million

1.79

2.50

3.21

4.10

4.10

Less: Revenue Loss due to NonOccupancy

5%

40.20

INR Million

1.43

2.00

2.57

3.28

3.28

IINR Million

27.13

37.97

48.83

62.38

62.38

2,227.75

INR Million

106.92

127.72

148.55

177.06

177.06

2.14

2.55

2.97

3.54

3.54

Receipts - Office Space

Total Net Revenue Receipts
Expenditure
Sales Costs and Overheads

2%

44.55

INR Million

Property Tax

5%

35.69

INR Million

2.24

2.35

2.47

2.60

2.73

Insurance Premium

5%

16.34

INR Million

1.03

1.08

1.13

1.19

1.25

96.59

INR Million

5.41

5.99

6.57

7.33

7.51

Gross Operating Profit (EBIDT

Basis)

2,131.16

INR Million

101.51

121.74

141.97

169.74

169.55

Add: Terminal Cash Flow

2,035.38

INR Million

370.44

INR Million

30.87

30.87

30.87

30.87

30.87

Total Revenue Expenditure

Depreciation

4.51%

Table 9.15: Business Plan for the First Phase Proposed Development on the Project Site (Year 9 to Year 15) - Showroom and Office Space
Particulars

Inputs

Total

Unit

Y9

Y10

Y11

Y12

Y13

Y14

Y15

Capital Account
Construction Phasing

0%

0%

0%

0%

0%

0%

0%

Capital Expenditure
Land Development Cost

36

8.06

INR Million

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

Particulars

Inputs

Total

Unit

Final Report
- 130 -

Y9

Y10

Y11

Y12

Y13

Y14

Y15

Sanction Fees and Cost of

Approvals

35

7.85

INR Million

Deposits Payable
Authorities

Civic

74

16.65

INR Million

Cost of Construction - Showroom

& Office Space (excl. Car
Parking)

1,760

INR per sq.

ft.

3,024

3,236

3,462

3,705

3,964

4,241

4,538

Cost of Construction - Parking

750

INR per sq.

ft.

1,289

1,379

1,475

1,579

1,689

1,807

1,934

Escalation in Construction Cost

7%

to

Total
Construction
(including Parking)

Cost

Preliminary and Preoperative

Costs
(Percentage
of
Construction Costs)
Total Development Cost

566.84

INR Million

15%

85.03

INR Million

3,052

684.43

INR Million

100%

100%

100%

100%

100%

100%

100%

157,703

157,703

157,703

157,703

157,703

157,703

157,703

202

202

202

202

202

202

202

57.24

65.83

65.83

65.83

75.71

75.71

75.71

Revenue Account
Showroom Space
Absorption Rate of Leasable
Area
Leasable
Area

157,703

No. of
CPUs

202

sq. ft.
Nos.

Receipts
Weighted Average Lease Rent

43.00

INR per sq.

ft. per month

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

Particulars
Car Parking Charges
Rent Appreciation (once in 3
years)

Inputs

Total

Unit

1,500

INR per CPU

per Month

Final Report
- 131 -

Y9

Y10

Y11

Y12

Y13

Y14

Y15

1,997

2,296

2,296

2,296

2,641

2,641

2,641

15%

Gross Potential Revenues as

Lease Rent

1,382.89

INR Million

108.33

124.58

124.58

124.58

143.27

143.27

143.27

Gross Potential Revenues from

Car Parking Charges

61.80

INR Million

4.84

5.57

5.57

5.57

6.40

6.40

6.40

Interest on Deposits - Gross

Potential

8%

96.31

INR Million

7.54

8.68

8.68

8.68

9.98

9.98

9.98

Less: Revenue Loss due to NonOccupancy

5%

77.05

INR Million

6.04

6.94

6.94

6.94

7.98

7.98

7.98

114.68

131.88

131.88

131.88

151.67

151.67

151.67

100%

100%

100%

100%

100%

100%

100%

87,715

87,715

87,715

87,715

87,715

87,715

87,715

113

113

113

113

113

113

113

Receipts - Showroom Space

IINR Million

Office Space
Absorption Rate of Leasable
Area
Leasable
Area

87,715

No. of
CPUs

113

sq. ft.
Nos.

Receipts
Weighted Average Lease Rent

42.00

INR per sq.

ft. per month

55.91

64.30

64.30

64.30

73.95

73.95

73.95

Car Parking Charges

1,500

INR per CPU

per Month

1,997

2,296

2,296

2,296

2,641

2,641

2,641

Rent Appreciation (once in 3

years)

15%

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

Particulars

Inputs

Total

Unit

Final Report
- 132 -

Y9

Y10

Y11

Y12

Y13

Y14

Y15

Gross Potential Revenues as

Lease Rent

720.57

INR Million

58.85

67.68

67.68

67.68

77.83

77.83

77.83

Gross Potential Revenues from

Car Parking Charges

33.17

INR Million

2.71

3.11

3.11

3.11

3.58

3.58

3.58

Interest on Deposits - Gross

Potential

8%

50.25

INR Million

4.10

4.72

4.72

4.72

5.43

5.43

5.43

Less: Revenue Loss due to NonOccupancy

5%

40.20

INR Million

3.28

3.78

3.78

3.78

4.34

4.34

4.34

IINR Million

62.38

71.74

71.74

71.74

82.50

82.50

82.50

2,227.75

INR Million

177.06

203.62

203.62

203.62

234.17

234.17

234.17

Receipts - Office Space

Total Net Revenue Receipts
Expenditure
Sales Costs and Overheads

2%

44.55

INR Million

3.54

4.07

4.07

4.07

4.68

4.68

4.68

Property Tax

5%

35.69

INR Million

2.86

3.00

3.16

3.31

3.48

3.65

3.83

Insurance Premium

5%

16.34

INR Million

1.31

1.38

1.44

1.52

1.59

1.67

1.76

96.59

INR Million

7.71

8.45

8.67

8.90

9.75

10.01

10.27

Gross Operating Profit (EBIDT

Basis)

2,131.16

INR Million

169.35

195.17

194.95

194.72

224.41

224.16

223.89

Add: Terminal Cash Flow

2,035.38

INR Million

2,035.38

370.44

INR Million

30.87

30.87

30.87

30.87

30.87

30.87

30.87

Total Revenue Expenditure

Depreciation

4.51%

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

9.7

Final Report
- 133 -

FINANCIAL INDICATORS FOR THE PROPOSED DEVELOPMENT

The table below summarizes key financial indicators for the First Phase of the proposed
development on the Project Site.
Table 9.16: Key Financial Indicators for the First Phase Proposed Development on the
Project Site
Particulars

Unit

Financial Indicator

Project Internal Rate of Return (IRR) - EBIDT

Percent

17.67%

Equity IRR - Post Tax

Percent

18.49%

Minimum Interest Service Ratio

Ratio

1.95

Average Interest Service Ratio

Ratio

12.19

Minimum Debt Service Ratio

Ratio

1.91

Average Debt Service Ratio

Ratio

2.54

Minimum Debt Service Coverage Ratio

Ratio

1.50

Average Debt Service Coverage Ratio

Ratio

1.86

Estimated Development Cost

INR Million

1,783.93

Estimated Project Cost (incl. Land Cost and IDC)

INR Million

2,230.96

Based on the above table, it may be concluded that the upcoming First Phase
development on the Project Site with built-up area of approximately 540,366 sq. ft.
comprising retail mall & multiplex, showroom space and office space, proposed to be
executed over next 3 years timeframe, has favorable financial feasibility indicators with
project internal rate of return (IRR) of about 18%, which is within the range of 18-20% as
expected in the market.
Further, the project also demonstrates favorable bankability indicators indicating healthy
cash flows and loan repayment potential. Average debt service coverage ratio works out
1.86, which is higher than 1.50 as desired by financial institutions. Minimum debt service
coverage ratio during the debt repayment period is 1.50, which is also higher than 1.30 as
desired by financial institutions.
Based on the above, it may be concluded that the proposed First Phase
development on the Project Site with built-up area of approximately 540,366 sq. ft.
comprising retail mall & multiplex, showroom space and office space, proposed to
be executed over next 3 years timeframe, is feasible both from the market and
financial feasibility perspective. Further, the cash flows demonstrate favorable
bankability indicators, indicating healthy cash flows and loan repayment.

9.8

SENSITIVITY / RISK ANALYSIS

A sensitivity analysis has been carried out for the proposed development under the First
Phase development on the Project Site assuming the following six scenarios:
Downside Scenario

Scenario 1: 10 percent increase in capital cost over the base case scenario;
Scenario 2: 10 percent decrease in revenues over the base case scenario; and
Scenario 3: 10 percent increase in capital cost and 10 percent decrease in revenues,
over the base case scenario

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

Final Report
- 134 -

Upside Scenario

Scenario 4: 10 percent decrease in capital cost over the base case scenario;
Scenario 5: 10 percent increase in revenues over the base case scenario; and
Scenario 6: 10 percent decrease in capital cost and 10 percent increase in revenues,
over the base case scenario

The table in the following page presents and summarizes the behavior of the project cost
and performance of key financial & bankability indicators for the proposed development
under each of the above sensitivity scenarios.

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

Final Report
- 135 -

Table 9.17: Sensitivity Analysis - Behavior of the Project Cost and Performance of the Key Financial & Bankability Indicators for the Proposed
First Phase Development on the Project Site
Sl.
No.

Particulars

Behavior of the Project Cost and Performance of Key Financial Indicators for Sensitivity Scenarios
(Base Case)

Scenario 1
(10% Increase in
Capital Cost)

Scenario 2
(10% Decrease in
Revenue)

Scenario 3
(Combination of
Scenario 1 & 2)

Scenario 4
(10% Decrease in
Capital Cost)

Scenario 5
(10% Increase in
Revenue)

Scenario 6(
Combination of
Scenario 4 & 5)

1.

Project Internal Rate of Return

(IRR) - EBIDT

17.67%

16.84%

16.20%

15.39%

18.58%

19.06%

19.99%

2.

Equity IRR - Post Tax

18.49%

17.17%

16.76%

15.49%

20.01%

20.14%

21.72%

3.

Minimum Interest Service Ratio

1.95

1.95

1.75

1.75

1.96

2.16

2.16

4.

Average Interest Service Ratio

12.19

12.18

9.05

9.02

12.21

14.34

14.36

5.

Minimum Debt Service Ratio

1.91

1.90

1.73

1.73

1.91

2.07

2.07

6.

Average Debt Service Ratio

2.54

2.54

2.59

2.60

2.54

2.73

2.73

7.

Minimum Debt Service

Coverage Ratio

1.50

1.50

1.50

1.50

1.50

1.50

1.50

8.

Average Debt Service Coverage

Ratio

1.86

1.86

1.60

1.60

1.87

2.10

2.10

9.

Estimated Development Cost

1,783.93

1,919.09

1,783.93

1,919.09

1,648.77

1,783.93

1,648.77

10.

Estimated Project Cost (incl.

Land Cost and IDC)

2,230.96

2,366.12

2,230.96

2,366.12

2,095.80

2,230.96

2,095.80

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

Final Report
- 136 -

Based on the above table, it may be noted that the proposed first phase of development on
the Project Site with built-up area of approximately 540,366 sq. ft. comprising retail mall &
multiplex, showroom space and office space, proposed to be executed over next 3 years
timeframe, indicates higher sensitivity towards change in revenue assumptions. The base
rate indicators are marginally higher than the accepted market norms and therefore the
downside scenarios show non-favorable indicators. As the project shows higher sensitivity
towards revenue assumptions, it is important to maintain and increase the revenue
realization from that of the base case scenario.
The project demonstrates favorable bankability indicators indicating healthy cash flows and
loan repayment. Under the worst case scenario, average debt service coverage ratio works
out to 1.60, which is higher than 1.50 as desired by financial institutions. Minimum debt
service coverage ratio during the debt repayment period is 1.50, which is also higher than
1.30 as desired by financial institutions.
Therefore, based on the above sensitivity analysis, it is evident that the proposed
development is sensitive to both increase in cost and decrease in revenue. Thus, it is of
paramount importance to administer strict cost control management measures
during the execution of the project. Further, as the sensitivity is higher towards the
revenue assumptions, aggressive marketing is very essential to ensure similar or
higher pricing recommended in this report is achieved during the disposal/
operation. A close watch and control of costing and pricing is of critical importance in
ensuring financial feasibility of the project.

Development Advisory Services for Proposed Mixed-Use Development Project on

11.3 Acres Land Parcel Located in Thrissur, Kerala, India

Final Report
- 137 -

10 ANNEXURE
10.1 DESCRIPTION OF SOCIO ECONOMIC CLASSIFICATION
Socio Economic Classification (SEC) is widely used classification under market researchers worldwide to describe the quality of the population. This classification of Indian consumers is on two
parameters, namely occupation and education of the chief wage earner (head) of the households.
The classification criteria were formulated in 1988 and were subsequently ratified by Market
Research Society of India (MRSI). This classification is used widely by media researchers and
brand managers to understand the Indian consuming class. The table below presents the SocioEconomic Classification Matrix for ready reference.
EDUCATION
OCCUPATION

Illiterat
e

Unskilled Workers

E2

E2

E1

Skilled Workers

E2

E1

Petty Workers

E2

Shop Owners

Literate
but not
Formal
School

School up
to 9 Years

SSC/
HSC

Some
College but
Not
Graduate

Graduate/
Postgraduate
- General

Graduate/
Post
GraduateProfession

B2

B2

B2

B2

B2

B1

A2

A2

Self-Employed Prof.

B2

B1

A2

A1

Clerical /Salesmen

B2

B1

B1

Supervisory Level

B2

B1

A2

Officers/ Executive-Junior

B2

B1

A2

A2

Officers/Executive-Middle/Senior

B1

B1

B1

B1

A2

A1

A1

Businessmen/ Industrialists with No. of Employees:

Less than 3

B2

B1

A2

A2

A1

4 to 10

B2

B2

B1

A2

A2

A1

More than 10

B1

B1

A2

A2

A1

A1

A1

Various SEC classifications are described below:

SEC A (Urban): Shop owners/ farmers/ wholesalers/ traders/ self employed professionals/
junior executives/ officers who have a graduate degree or above, businessmen/ industrialists
with less than 10 employees and have been to college, businessmen/industrialists with 10 or
more employees and have greater than four years of schooling, all middle/senior officers and
executives who have been to college in urban areas

SEC B (Urban): Shop owners/ farmers/ wholesale traders/ self employed professionals/
officers/ junior executives who have spent some time in college but are not graduates, clerks
and salesmen who are graduate and above, supervisors who are graduate and general post
graduates, businessmen/industrialists with 9 or less employees and have completed schooling,
businessmen/ industrialists with 10 or more employees but up to 9 years of schooling, all
middle/senior officers and executives who have not been to college, skilled workers and petty
traders with graduate or higher degree, Shop owners who have completed schooling,
businessmen with 5 to 9 years of schooling, businessmen with up to 9 years of schooling, self
employed professionals, officers and junior executives who have completed schooling,

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Final Report
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supervisors/ clerks/ salesmen who have spent some time in college but are not graduates in
urban areas

SEC C (Urban): Skilled workers and petty traders with greater than 9 years of schooling but
not graduates, shop owners/ farmers/ wholesalers/ traders with 5 to 9 years of schooling,
illiterate businessmen with 1 to 9 employees, businessmen with no employees but up to 4
years of schooling, clerks and salesmen who have completed schooling, supervisors with
greater than five years of schooling but not college, officers and junior executives with up to 9
years of schooling in urban areas

SEC D (Urban): Unskilled workers with greater than 9 years of schooling, skilled workers with
5 to 9 years of schooling, literate petty traders with up to 9 years of schooling, shop
owners/farmers or wholesale traders with up to 4 years of schooling, self employed with no
employees, self employed with up to 9 years of schooling, Clerks and salesmen with up to 9
years of schooling, Supervisors with up to 4 years of schooling in urban areas

SEC E (Urban): Unskilled workers with 5 to 9 years of schooling, skilled workers with up to 4
years of schooling, unskilled workers with up to 4 years of schooling, illiterate skilled workers,
illiterate petty traders in urban areas

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11.3 Acres Land Parcel Located in Thrissur, Kerala, India

Final Report
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10.2 PERCEPTION ANALYSIS FROM PROMINENT RETAILERS IN THRISSUR AND KOCHI

Retail Brand/ Category
Reliance Trend

Key Perceptions and Preferences

Puma,
Woodlands,
Arrow, Lee, United
Colour of Benetton &
Van Heusen

Kalyan Silk

Footfalls & Conversions: The average footfalls vary from 200-300 during weekdays with conversion of about 50% and 200-400 during the weekends
with conversion rate of 80%. Both footfalls and conversions are significantly high during festival season.
Shoppers: Shoppers are basically from Thrissur (major percentage) followed by adjoining urban centers like Chavakkad, Shoranur, Vadakkencherry,
Irinjalakuda , Chalakuddy, Kunnamkulam and partly from Pollachi.
Age of Shoppers: The active shoppers in Thrissur are basically those between 25 to 50 years of age and these are primarily the working class
population.
Expansion Plan: Looking for expansion or shifting to new premises with better facilities in the city with space of about 10,000-15,000 sq. ft.
Willingness to Relocate to Mall: Indicated willingness to relocate to a mall with rental ranging from INR 40-45 per sq. ft. per month
Preference for Facilities and Amenities: Require ample parking facilities and facility should have good ambience.
Rating of Location of the Project Site for Mall: Excellent location, as shoppers catchment is from Punkunnam, Ayyanthole & Chembukkav.
Footfalls & Conversions: The average footfalls vary from 30-40 during weekdays with conversion of about 75% and 30-60 during the weekends with
conversion rate of 40%. Both footfalls and conversions are significantly high during festival season.
Shoppers: Shoppers are basically from Thrissur. However, during the festive seasons and holidays, shoppers are coming from adjoining urban
centers like Chavakkad, Shoranur, and Chalakuddy.
Age of Shoppers: The active shoppers in Thrissur are basically from 16-25 years of age and these are primarily students.
Expansion Plan: Looking for expansion or shifting to new premises with better facilities in the city with space of about 1,200-2,000 sq. ft.
Willingness to Relocate to Mall: Indicated willingness to relocate to a mall with rental ranging from INR 75-100 per sq. ft. per month
Preference for Facilities and Amenities: Require ample parking facilities. Prefer locating in the ground floor, close to atrium with good frontage.
Rating of Location of the Project Site for Mall: Excellent location, as the catchment has good residing population.
Footfalls & Conversions: The average footfalls vary from 500-600 during weekdays with conversion of about 75% and 500-750 during the weekends
with conversion rate of 85%. Both footfalls and conversions are significantly high during festival season.
Shoppers: Shoppers are basically from Thrissur (major percentage) followed by adjoining urban centers like Chavakkad, Shoranur, Chalakuddy and
Kunnamkulam etc. with high disposable income.
Age of Shoppers: The active shoppers in Thrissur are basically those between 25 to 50 years of age and these are primarily the working class
population and also NRIs (NRKs).
Expansion Plan: Looking for expansion or shifting to new premises with better facilities in the city with space of about 15,000 sq. ft.
Willingness to Relocate to Mall: Indicated willingness to relocate to a mall with competitive rentals (not specifically indicated rental range). However,
indicated larger preference for standalone complex.

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Retail Brand/ Category

Shoppers

Oberon Mall Officials,

Gold Souk Grande
Officials & Retailers

Final Report
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Key Perceptions and Preferences

Preference for Facilities and Amenities: Require ample parking facilities and facility should have good ambience. Other preferences include lifts,
road frontage, and location close to food court.
Rating of Location of the Project Site for Mall: Excellent location, as located away from city traffic congestion and also good residential catchment
with disposable income.
Retail Format: Due to non-availability of malls in the city, shopping centers and high streets are the most preferred destination.
Preference for Shopping: Prefer to shop for Food & Groceries at the supermarkets and the frequency is almost 4-5 times a month. Jewellery,
watches, Body & Healthcare products, Furniture & Electronics Goods are usually purchased from the high streets. Gifts, Music, Footwear, F&B and
Fine Dining are usually from the shopping centers.
Expectations: Expect variety of product within one roof.
Rating of Existing Shopping Centers: Rated City Center and Big Bazaar as preferred retail outlets for shopping as both encompasses variety of
products and witness huge crowd across all times. However, majority brands are local and non-reliable - requires branded national and international
brands.
Rating of Location: Good location as located away from city traffic congestion. Excellent road network and regional connectivity.
Feature within Mall: Food Court & Fine Dining Restaurants, adequate parking facility, Multiplex, Childrens Play Area, Game Centre, Fitness Centre,
ambience and good circulation.
Retail Format in Thrissur: Very limited retail options available for a mall format in Thrissur CBD. However, corridors like High Road connecting Kochi
and Thrissur, and Kuttippuram Road can be a good location for mall format. Existing retail development like, Big Bazaar, City Center and Center
Point are catering to middle income segment and student population. Majority of the retail format in Thrissur are in the form of Standalone complex
and they prefer the same. A mall development in Thrissur will change the entire scenario in terms of Format, Size & Scale and also Brands. Existing
larger format apparel brands like Kalyan Silks can be a part of Mall instead of being in a standalone format.
Shoppers from Thrissur visiting Kochi: Larger percentage of shoppers from Thrissur with high disposable income visit Kochi during the weekends
and the same is very high during festival and marriage seasons.
Mall / Retail Positioning: There are few options available with respect to diamond jewellery. Very few urban centers like Trivandrum, Kochi,
Kozhikode has outlets of the same. However since Thrissur is prominent for Diamond Cutting and Polishing, the same can be considered while
positioning the brands. It also been witnessed the adjoining district, namely the Coimbatore from Tamil Nadu state, the upper middle income
segment prefer diamond rather than gold.
Critical Success Factors for Mall Development: Features like signing of large format in the initial stage is a critical factor for all organized malls. With
respect to the same, the under construction Sobha City Mall will be fronting a challenging task. Also witnessed, that few of the formats were been
sold out to the investors, make it further more critical in terms of mall management. Its advisable to place the large format shops in the upper floors
and the F&B close to Multiplex. Familiar brands from middle-east can be incorporated while positioning the branding.

Development Advisory Services for Proposed Mixed-Use Development Project on

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10.3 PERCEPTION ANALYSIS

BANGALORE
Category of
Occupiers
Survey
conducted
from IT/ITES occupiers
in Bangalore

OCCUPIERS SURVEY

IN

KOCHI

AND

Key Perceptions and Preferences

Survey
conducted
from IT/ITES and other
occupiers in Kochi

FROM

Final Report
- 141 -

Very satisfied by being located in Bangalore- the IT hub of India

Less willingness to expand in Tier II cities which is restricted to Kochi in
Kerala
Thrissur not considered as a preferable location for IT/ITES development and
considered as a Tier III city in terms of Real estate and IT penetration
Very low visibility of Thrissur among the IT/ITES occupiers
Reasons provided for not expanding to Tier II or Tier III cities are High cost of establishments
Similar real estate costs as in periphery of a Tier I city like Bangalore
Less availability of graded office buildings
Due to lack of opportunities, there is high rate of migration to Tier I cites
among the potential workforce
Most of the occupiers are satisfied with the presence in Kochi and have very
less preference for further expansion in Tier III cities in Kerala
Most preferred locations in Kerala for IT/ITES are Kochi followed by
Trivandrum
Availability of excellent air connectivity to Kochi and Trivandrum and
provision of good infrastructure facilities mainly promoted by the government
are the major drivers for establishment of the units in these cities.
There is high availability of graded office space in Kochi and therefore no
preference to move to a Tier III city.
As there would not be any cheaper rates offered in Thrissur as compared
with Kochi, there is almost negligible preference to start fresh operations in a
new market

10.4 BROAD TENANT MIX FOR THE PROPOSED MALL

Based on the surveys of the retailers and their preferences, a broad tenant mix has been
prepared for the proposed retail mall development on the project site. The tenant mix has
been worked out on the following parameters

Retailers preference as illustrated in the Table 8.6 above

Positioning categories complementary to each other in close proximity like apparel and
accessories to create impulsive buying
Placing high value and high in demand categories easily accessible and on lower
floors of the mall
Placing categories with lower footfalls and focused sales like electronics and health
and beauty on higher floors while categories with higher footfalls and which can induce
impulse buying on the lower floors like apparel, accessories, F&B etc.