8/6/2019 Bangalore Retail Market Beat 4Q10

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BANGALORE RETAIL REPORT

4Q10

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CONOMYhe Indian economy maintained its high growth momentum, with a realD of 8.9% during the second quarter (July to September) of financial year10-11. The robust growth rate is expected to persist through the balance of fiscal year ending March 2011, with the Ministry of Finance expecting an

nual real GDP growth rate of 8.75%, the highest in three years. On thepply side, growth in agriculture (4.4% YoY), manufacturing (9.8% YoY)d construction (8.8% YoY) remained firm. Demand was led by fixedestment (11.1% YoY) but growth in all sectors (except imports) remained

ove 9.0% YoY.

VERVIEWngalore witnessed fresh mall supply of approximately 180,000 square feetring the fourth quarter of 2010 taking the years total to approximately 1.1llion square feet (across two malls). The citys mall vacancy level continuedbe on the lower side at around 1.0% as most of the operational/new mallserated in almost full occupancy or was launched at lower vacancy levels.tailers continued with their pre-commitments for spaces in under-nstruction malls.ain street rentals showed a northward trend in the range of 3-13% whichs accentuated by meager supply of mall space and lack of space availabilityoss the operational malls as well as the main streets. Leasing activity across main streets continued to show a buoyant trend as KFC, Taco Bell,

ossword, etc., opened newer outlets. Mall rentals remained stable, however;ysore Road was the only exception registering a decline of about 3.7% over previous quarter on account of receding retailer interest in the micro

rket.

UTLOOKhe city is likely to see fresh mall supply in moderately untapped microrkets with high occupancy level which will help in maintaining the vacancyels on the lower side. Rentals across the prominent main streets arepected to continue with the upward trend on account of limited infusion ofw spaces. Newer locations in untapped markets with good catchments andordable rentals are likely to emerge as favorable destinations for organizedail.

SIGNIFICANT PROJECTS UNDER CONSTRUCTION

PROPERTY LOCATION SQUARE FEETCOMPLETIO

DAT

RoyalMeenakshiMall

BannerghattaRoad

450,000 1Q1

BrigadeOrion

Rajajinagar 750,000 4Q1

PRIME RETAIL RENTS MALLS

INR PER SF/MO 12-

LOCATION 4Q09 3Q10 4Q10EUROSF/YR

US$S F/YR

MONTHOUTLOOK

Koramangala 400 400 400 80.1 107.4 Magrath Road 315 315 315 63.1 84.6 Cunningham Road 200 200 200 40.1 53.7 Mysore Road 150 140 135 27.0 36.2 Vittal Mallya Road 350 350 350 70.1 94.0 Whitefield 150 150 150 30.0 40.3 Rajarajeshwarinagar 115 115 115 23.0 30.9 Malleshwaram NA 220 220 44.1 59.1

PRIME RETAIL RENTS MAIN STREET

INR PER SF/MO 12

LOCATION 4Q09 3Q10 4Q10EUROSF/YR

US$S F/YR

MONOUTL

MG Road 180 180 185 37.1 49.7 Brigade Road 375 420 440 88.1 118.1 CommercialStreet

250 300 315 63.1 84.6 100 Feet Road,Indiranagar

125 135 145 29.0 38.9 Jayanagar, 4thBlock, 11th Main

200 230 245 49.1 65.8 Sampige Road,Malleshwaram

85 90 90 18.0 24.2 80 Feet Road,Koramangala

100 90 100 20.0 26.8 Vit ta l Mallya Road 180 180 185 37.1 49.7 New BEL Road 100 120 135 27.0 36.2 MarathalliJunction

85 105 110 22.0 29.5 Kamanahalli MainRoad

90 115 130 26.0 34.9 Note: Values are quoted on carpet area for ground floor properties of vanilla retailers

SIGNIFICANT LEASING TRANSACTIONS

PROPERTY LOCATION TENANT SQUARE FEE

Standalone Hosur Road ManchesterUnited

7,00

StandaloneCommercialStreet

WOW 6,00

Standalone Lavelle Road Harley Davidson 3,00

ECONOMIC INDICATORS

NATIONAL 2009 2010F 201

GDP Growth 5.7% 8.8% 8.4

CPI Growth 10.9% 13.2% 6.7

Private Final Expenditure Growth 4.3% 6.6% 8.0

Govt. Final Expenditure Growth 10.5% 3.0% 4.0

Population (In Millions) 1199.1 1215.9 1232Source: IMF & Government of India