After making a mark in the real estate and the hospitality sector, Mumbai-based K Raheja Corp is now diversifying into retail business by constructing India's biggest mall at Mumbai.
Covering an area of about 1.2 million square feet, the mall -- Inorbit -- is being constructed with an investment of over Rs 150 crore (Rs 1.50 billion).
While the first phase comprising 550,000 square feet space is going to be operational by August this year, the second phase will take another 18-20 months for construction to be complete, K Raheja Corp director (marketing & sales) Vinod Rohira said.
The company would be investing Rs 75-80 crore (Rs 750-800 million) in the first phase and will put in a similar investment in the second phase.
The company does not plan to sell any space in the mall and is offering space at an average rental of about Rs 90 per square foot per month.
The company has roped in Chapman Taylor Partners to design and construct the mall.
Rohira said that the company wants to build more such malls in future across the country but the decision will be taken after the first phase is complete.
"We definitely want to expand in the retail segment with malls across the country," he said.
He added that since 30 per cent of the space in a mall would be taken by the company's own retail brands including Shopper's Stop or a hotel, it will justify the company's rationale for getting into a mall.
He added that the company was already in negotiations with a couple of players at other locations for mall development.
Inorbit is located within the company's Mindspace project in Mumbai.
Mindspace is a city-within-a-city kind of a commercial project spread over about 8 million square feet with 30 per cent area allocated for residential sector and another 10-12 per cent for retail, entertainment and other services.
K Raheja Corp is building similar projects at Bangalore and Hyderabad. Company officials say that there is a possibility of similar retail projects at those locations too. The final decision, however, has not been taken.The company has already finalised RPG's hypermarket chain Giant, Shringar multiplex, Shopper's Stop and Lifestyle as the four anchor brands for Inorbit.