Mumbai: Inorbit Mall, a subsidiary of K Raheja Corporation, plans to invest around Rs 250 crore every year for expanding its presence in the country through brownfield route, a top company official said.
“We currently have six malls and want to increase the number in the coming years. We are exploring brownfield expansion options by acquiring existing malls where construction has not been able to be completed due to various reasons,” Managing Director and Chief Executive Officer Kishore Bhatija told PTI here.
He said the company plans to invest around Rs 250 crore every year for this route of expansion.
Currently, the company is operating six malls, one each in Mumbai, Navi Mumbai, Hyderabad, Pune, Bangalore and Baroda.
“We have set a target of launching nearly 5-8 lakh sq ft every year and brownfield expansion can help us achieve the target to some extent,” he said. Bhatija said the company was looking at opportunities in various cities, but is yet to finalise any deal.
“We have identified few projects and are negotiating with them. We want to sign at least one deal every year,” he added.
Though it is an easier route for expansion, Bhatija said the challenge is getting the right kind of design and location to suit the company's standards.
He further said though the investments initially would be high for acquiring the projects, realisation will be quick.
Also, the investment required is much less in this model as in greenfield expansion the cost for land and interest is much higher making the project financially unviable if there is delay in getting the clearances, he added.