Commercial Development of Vacant Land Plot Near Ambedkar Circle, Vizag

RAIL LAND DEVELOPMENT AUTHORITY

A Statutory Authority under Ministry of Railway Government of

Project Information Memorandum (PIM)

for

Grant of lease for Commercial Development on approx. 1257 sq. m. of Vacant Railway land at Ambedkar Circle, Vishakhapatnam,

Rail Land Development Authority Near Safdarjung Railway Station Moti Bagh-1, New Delhi-110021

Project Information Memorandum Commercial Development of Vacant Land Plot Near Ambedkar Circle, Vizag

Disclaimer

The information provided in this Project Information Memorandum (PIM) is solely for information and RLDA shall not be responsible for any inaccuracy in it. Each Bidder should conduct their own investigations and analysis, and should check the accuracy, reliability and completeness of the information in this PIM and wherever necessary obtain independent information from appropriate sources. RLDA, their employees or any of its agencies/consultants/advisors make no representation or warranty and shall incur no liability under any law, statute, rule or regulation as to the accuracy, reliability or completeness of the PIM.

Project Information Memorandum Commercial Development of Vacant Land Plot Near Ambedkar Circle, Vizag

CONTENTS OF PIM

The “Project Information Memorandum (PIM)” is being issued in reference to “RFP Notice No. RLDA/RFP/CD-1of 2012” for the Ambedkar Circle, site.

This PIM document provides the applicants the information about the proposed commercial development of plot near Ambedkar circle in Vizag and enables them to make an assessment of the project.

Project Information Memorandum 1 Commercial Development of Vacant Land Plot Near Ambedkar Circle, Vizag

TABLE OF CONTENTS

Chapter Particulars Page No. 1 Introduction 3

2 Site Features 4 2.1 Location and Area 4 2.2 Accessibility to the site 6 2.3 Existing Development at the Site 7 2.4 Infrastructure Availability 7 2.5 Site Potential 8

3 Demand Assessment 9 3.1 Visakhapatnam Real Estate Market 9 3.2 Primary Demand Survey 12 3.3 Conclusion 13

4 Development Control regulations 13 4.1 Existing Land Use 13 4.2 Major Building Control and Byelaws 14

5 Structure, Roles and Responsibility 15 5.1 Indicative Project Structure 15 5.2 Developer’s Responsibility 15 5.3 Responsibility of Railways 16

6 Land Title & Sub-Division 21 6.1 Land Title 21 6.2 Sub-Division 21

Project Information Memorandum 2 Commercial Development of Vacant Land Plot Near Ambedkar Circle, Vizag

1 INTRODUCTION The Indian Railways is desirous for commercial development of plot near Ambedkar circle in Vizag, which is presently lying unused and railway operations are not envisaged on this plot in the foreseeable future. The said objective is being carried out by RLDA, a statutory body of Indian Railways formed through an amendment to the Railway Act, 1989. By this amendment, the Railways are authorised to carry out commercial development of railway land.

IL&FS Infrastructure Development Corporation Limited (IIDC) has been appointed by RLDA as project advisors for assisting them in carrying out an assessment of the real estate potential of plot near Ambedkar circle in Vizag and select a developer through an open, competitive bidding process.

IIDC was involved in the site survey, assessment of on-site infrastructure, stakeholder interaction, discussions with development authorities and site analysis with respect to the macro and micro real estate market trends which led to identification of development options and product mix. Conceptual development plans were drawn up for suitable option based on the applicable development controls and guidelines of the local development authority. This PIM provides the site information, development controls and building guidelines.

Applicants are advised to make an independent assessment of the project at their end, make site visits and carry out necessary investigations and due diligence and check the adequacy of the information given in the PIM.

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3 Commercial Development of Vacant Land Plot Near Ambedkar Circle, Vizag

2 SITE FEATURES 2.1 Location and Area The proposed site is located near Ambedkar Circle abutting the Old Jail Road. The site is located at the junction of major roads connecting the commercial hubs of Visakhapatnam – , RTC Complex , , and Jagadamba Junction.

The site is strategically located at distance of:  15 Km from Visakhapatnam Airport.  1 Km from Visakhapatnam Railway Station.  2 Km from the present Central Business District (CBD). i.e. RTC Complex, Asilmetta, Daba Gardens and Jagadamba Junction

Location of Project Site

RLDA Site

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4 Commercial Development of Vacant Land Plot Near Ambedkar Circle, Vizag

Sketch Showing Site Surroundings

The plot is located at junction of five major roads and facing Ambedkar Circle. The plot is rhombus shaped and the total area is nearly 1257 sq m. The soil type at the site is classified as coastal sandy soil. The existing development surrounding the site includes:  LIC Building on north: LIC building is one of the first high-rise structures in Visakhapatnam. This 10 storied building is one of the landmarks in Visakhapatnam. Many ATM counters and small signature showrooms are present in ground floor of this building.  Dabagarden Road connects Women’s College Vizag at south of the site.  Old jail road runs along the east of the site. The Old Central Jail is located on it. This land has been unlocked by Govt. for commercial utilization. Govt. is reviewing the development options for this land.

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5 Commercial Development of Vacant Land Plot Near Ambedkar Circle, Vizag

 Diamond Park road runs along the west of the study site. Across the road lies East coast Railway Quarters.

A view of the site’s surrounding are is shown in the sketch below:

Sketch Showing Site Surroundings

2.2 Accessibility to the site Being located at the Ambedkar junction which is the intersection of five major roads of the city, the site has good accessibility and can be accessed from five major roads. These are as follows:

 60’ wide North Jail Road connecting Dasapalla Hills,

 60’ wide Old Jail Road connecting RTC Complex,

 60’ wide LIC Road connecting ,

 60’ wide South Jail Road connecting Railway Station, and

 60’ wide road towards Daba Gardens.

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2.3 Existing Development at the Site The site is lying largely vacant apart from a small shed. However, these can be easily demolished for development at the site. There is a large banyan tree and a few small trees within the site as well as an old iron structure that appears to have been intended to support an overhead water tank that has not been constructed. There is also a structure supporting a hoarding towards the Ambedkar Circle. The site has a wall running around it with openings to provide access to the site. There is a level difference between the two sides of the site abutting the roads meeting at the Ambedkar Circle. There are a number of fruit stalls situated along the wall of the site towards the Ambedkar Circle. These are outside the site boundary and are essentially temporary structures placed on a common concrete platform running along the site’s boundary wall.

2.4 Infrastructure Availability

Details of available infrastructure in the area wherein the site is given below: Water Supply: The site falls within GVMC area and has access to municipal water supply. GVMC’s underground water tank or town supply reservoir is located at just 350 m away from the site. Power Supply: East Power Distribution Company of A.P Ltd. (APEPDCL) manages electric supply in the area. Low-tension electricity poles are present along the roads by the site. The site as good access to power supply with 440 KVA transformer installed within LIC campus adjacent to the site. Sewerage: This area has underground sewerage and drainage network installed by GVMC. Solid Waste management: The municipal corporation disposes the solid waste in the area. Municipal solid waste bins are present in the area and collection is done at fortnightly basis. Educational Facilities: Many schools and colleges are present in nearby residential colonies within 3 Km radius of study site. The nearest institutional facility is Womens’ College Vizag right across the road. Other famous institutions are Vikas Boys College, Sri Krishna Vidya Mandir, MGM High School etc.

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Health care facilities: There are many small health care centers located in this area. Other than these, people for this area either go CARE Hospital and Apollo Hospital on Waltair Main Road which is hardly 3 Km from the study site. Recreational facilities: There are many entertainment facilities such as movie theatres and Restaurants present in vicinity of this area. Jagadamba theatre is one of the oldest and most popular movie destinations. Infrastructure mapping in catchment area

2.5 Site Potential Strength  Site is located in proximity to the CBD area of Visakhapatnam  Site is located at junction of major roads and has good frontage to increase the visibility  Good connectivity from all parts of city through public transport  Basic infrastructure viz. Power, Water, Sewage are well developed  Site is located close to railways station and bus station Project Information Memorandum

8 Commercial Development of Vacant Land Plot Near Ambedkar Circle, Vizag

 Most of the commercial and retails developments are happening in the vicinity of the site  Real estate perception in the area is very encouraging

Opportunities  Rapid urbanization creating need for commercial/retail inventory in the city  Lack of land availability in the vicinity

3 DEMAND ASSESSMENT

3.1 Visakhapatnam Real Estate Market The city of Visakhapatnam is gaining significance on the real estate front and has emerged as one of the key Tier II cities in India. The city is being recognized as an attractive destination for IT/ITES development. There have been noticeable developments observed in the last 2-3 years with respect to the real estate developments in the city. The property prices have shown signs of revival after the global economic slump and have show a stable increase. Good quality of life, low cost of living and several planned infrastructure development projects are among important reasons attracting national and international corporate entities for focusing their investments in the city. The industrial growth, promotion of the service sector by the government, investor interest seen in the past years still continue and trigger a strong demand for real estate across all sectors. Some of the major projects which have seen light in the past 3 years in retail segment are Pantaloons Show room in Daba gardens, Vizag Central at Super Bazar road, Vaibhav V- square Mall at Dwaraka nagar and CMR central Mall with Multiplex at Maddelapalem. With the hike in land values in the central and sub urban areas or Visakhapatnam, many of the residential projects have come up in the peripheral areas specially in Rishikonda and areas where the land values are affordable.

3.1.1 Commercial Market With the promotion of IT companies by APIIC at IT&ITeS SEZ in & Madhurawada areas, prominent companies have taken up built to suit spaces. Some of the major companies which have started operations in this area are: Kenexa Technologies, IICT, Infotech enterprises, Symbiosis Technologies, 2K Technologies,

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9 Commercial Development of Vacant Land Plot Near Ambedkar Circle, Vizag

Miracle Soft ware etc. The other major commercial areas for office space in the City are Satyam Junction, , Dwaraka Nagar, Daba Gardens, Siripuram, Dutt Islands, VIP road. Typically the ground and first floor are used for retail stores while the upper floors are used for office spaces in the central and sub urban areas. Some of the major IT & BPO’s in these areas are: Satyam and ISB at Satyam Junction, HSBC at Siripuram etc.

3.1.2 Retail Market The retail market of Visakhapatnam is witnessing a surge in the retail activity. This can be attributed to the industrial growth and IT/ITeS development, which has resulted in potential catchment for retail. The retail demand in Visakhapatnam is not only meeting the requirement of the residents but also the high net worth individuals in the surroundings districts. The current retail market is characterized by unorganized retailing located in the CBD and off CBD locations of the city. The main areas where retail activity is concentrated are Jagadamba Circle, Siripuram Junction, Dwaraka Nagar and Dabagardens. The retail market that started in the form of traditional high street retail in the old city has grown into an organized form over a period of time, reflecting the changing needs and preferences of the people in the city. Some of the major shopping malls which are operational in the past 3 years are Pantaloons Show room in Daba gardens, Vizag Central at Super Bazar road, Vaibhav V-square Mall at Dwaraka nagar and CMR central Mall with Multiplex at Maddelapalem. Three to four shopping malls are coming up in areas like Dondaparthy, Dwaraka nagar and Asilmetta areas which are under various stages of construction. These malls are expected to be operational in the next 3-4 years.

Due to significant gap between supply and demand and also with space crunch in the CBD areas the lease rentals have seen a north ward movement.

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Retail High Streets

N

The table below gives an overview of the existing retailers/ Shopping malls in the vicinity of the study area.

Retail/Shopping malls in Visakhapatnam

Locations Retailers/ Shopping Malls Present

Chandana Brothers, CMR Shopping Mall, Bommana brothers, Jagadamba Tammudi Brothers, SKML, Daspalla Restaurant, Alpha Restaurant, SR Junction Shopping Mall, Jagadamba Sarada Theatre, Peter England, Jives

ANR and Kalaniketan Shopping Mall, Sai Ram Restaurant, men-o-com Dwarakanagar mall, Vaibhav V-square Mall, Pizza Hut,

Amaravathi Hotel, Centre Point Hotel, R.K.Family Store, Digjam Dabagarden Showroom, JK Silk Sarees, Bata Showroom, Panorama Electronics, Pantaloons, Vizag Furniture, Cell point, Mobile King, Bata, Van

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11 Commercial Development of Vacant Land Plot Near Ambedkar Circle, Vizag

Huesen, Bank of Baroda, Andhra Sports, Sharma Sports, J.K silks, Allensolly, Arvind Store, Planet Fashion,

Sampath Mohammed Khan & SonsGRT Grand, Kalaniketan, Malabar Gold, Vinayak road, Kirtilals, Vini’s Furnishing, GRT, The Land Mark Shopping mall Asilimetta

Jagapathi Plaza, Me& mon, Peejay Plaza,More, State Bank of India, VIP road, Dutt VUDA Complex, HSBC, Kamat, Fusion foods, Subway, Jack Frost, US Islands, Pizza, Karachiwala departmental stores, Max New York Life, M&M Siripuram shopping Mall,

Maddelapalem CMR Central Mall, Mega Mart, Adidas, Naturals, Bank of India, etc.

3.2 Primary Demand Survey To assess the demand and supply, a survey comprising of Developers & Builders, Property Consultants, Citizens and the local development authorities was conducted. The findings of the survey are as follows:  About 80% of feel that the study site has a very good catchment for commercial and retail development.  85% respondents feel that a High end Retail formats such as Shopping Mall, food court and Multiplex would be most suitable for the site  70% feel that single development should be promoted on the site either retail or commercial office space. Multiplex can also be a good proposition on this site.  80% feel that the site has good potential for retail development with multiplex; as it has excellent approach and visibility.  50% feel that Grade ‘A’ office space can also be very good option for development along with Retail development on first two floors.

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12 Commercial Development of Vacant Land Plot Near Ambedkar Circle, Vizag

None of the developers suggest residential development on the site as the plot size is too small for the same.

3.3 Conclusion In order to make a realistic justification of the actual demand, market survey of various possible real estate products and key players (investors/ operators) in vizag was undertaken by IIDC. It appears that the demand for this site is primarily for retail and commercial real estate development. This is in line with the usage in the surrounding areas and the excellent location of the site in the CBD of Visakhapatnam.

4 DEVELOPMENT CONTROL REGULATIONS

4.1 Existing Land Use Based on the discussion with VUDA officials and as indicated in the revised master plan, it is known that the permitted land use designated for the site is “Public and Semi-public”. Surrounding area is mostly commercial in nature. There are many administrative buildings Proposed site and schools in vicinity of the site such as LIC building, TSR Complex, Women’s College Vizag, Sangam Theatre, RTC Complex, Railway Hospitals, etc. Railway Colony is one of the big residential colonies near the site.

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13 Commercial Development of Vacant Land Plot Near Ambedkar Circle, Vizag

Landuse Map – GVMC Source: GIS city map, www.gvmc.gov.in

4.2 Major Building Control and Byelaws The Visakhapatnam Urban Development Authority (VUDA) is responsible for preparing the master plan for the VMR, with implementation and monitoring responsibilities being devolved to the Greater Visakhapatnam Municipal Corporation (GVMC). The Revised Master Plan 2021 for the VMR and Zonal Development Plans for the five urban agglomerations in VMR have been approved by the State Government in June 2006.

Overall, the Revised Master Plan 2021 envisages an increase in the land use for residential purpose to 12.17% in 2021 from 8.33% in 2002 and for industrial use from 4.56% to 6.59% over the same period. Commercial use is projected to increase from 352 ha (0.20%) to 958.9 ha (0.56%). The diversion of land for this use is projected mainly from agricultural use and vacant land, which is projected to decline from 99681 ha (57.9%) to 85075 ha (49.4%).

The Government of Andhra Pradesh have issued Comprehensive Building Rules and other related rules which are applicable to Municipal Corporations, Municipalities, Nagar Panchayats and areas covered by Urban Development Authorities in the State. These have been issued by Municipal Administration and Urban Development Department – Andhra Pradesh Building Rules, 2012 – Orders – Issued through G.O.Ms. No. 168 dated 07.04.2012. These Building Rules are regulating the building activities in above areas.

The designated land use of the site is presently “Public and Semi-Public” as verified by VUDA on the basis of the soft copy of the AutoCAD file showing land use as per the Master Plan. RLDA is in the process of change of land use of the site from “Public and Semi-Public” to “Commercial” from the concerned Authorities.

The proposed project would not require any environmental clearance as the total built up area calculated, considering the development control by-laws of VUDA is less than the threshold limit of 2,15,000 sq. ft as defined under Schedule 8(a) of Environmental Impact Assessment Notification – 2006 issued by Ministry of Environment and Forest, Government of India. However any local clearance if require for cutting down of the trees standing in the plot shall be taken by the developer before starting the construction on the plot. Project Information Memorandum

14 Commercial Development of Vacant Land Plot Near Ambedkar Circle, Vizag

5 PROJECT STRUCTURE, ROLES AND RESPONSIBILITIES 5.1 Indicative Project Structure RLDA intends to implement the project on commercial format. The land would be offered by railways to a developer on lease for a period of 30 years. The selected developer will be given the entire rights and responsibility of conceptualising, funding, constructing, providing the infrastructure utilities, marketing and sub-leasing of the built-up and other spaces. The responsibility of obtaining all approvals including prior environmental clearance shall lie with the developer, though as owner of the land, railways can facilitate the same wherever required, whether internally or with civic agencies like the VUDA, GVMC etc. In return the developer will pay an upfront lease premium and nominal annual rentals to RLDA.

5.2 Developer’s Responsibilities

The responsibilities of Developer shall include but not limited to the following:  To design, obtain requisite approvals, finance, construct and develop the plot of land for the above mentioned development as may be permissible under the applicable planning and municipal laws within a maximum period of two years from the date of execution of the Development Agreement.  To prepare a Site Plan and Phasing Plan and get them approved from RLDA prior to approaching VUDA for Plan sanction and start of construction at the site.  Developer shall submit all drawings including plans, sections, elevation, construction drawings etc and specifications to the Engineer-in-charge/ Nodal Officer identified by RLDA within 90 days from the award of the work, for their approval.  After receiving approval from Engineer-in-charge/ Nodal Officer, Developer shall seek approvals from concerned local bodies like Visakhapatnam Urban Development Authority, etc wherever required. Responsibility of getting approvals lies with Developer however, Railways shall facilitate the same wherever required. Developer shall submit a copy of approvals received from local bodies to RLDA.  To market the space constructed and developed in the area leased to him, by way of sub-leasing, letting & licensing.  Consideration: In return for the rights given to him, the developer shall pay the following: Project Information Memorandum

15 Commercial Development of Vacant Land Plot Near Ambedkar Circle, Vizag

o Lease Premium to RLDA for the land and development rights given to him. This Lease Premium shall be the bid variable for RFP stage, for selecting the bidder. o A nominal annual lease rental to RLDA @ Re. 1 per sq.mt. of land area leased to it, in advance every year, for the term of the lease. Service tax as applicable shall be payable by the bidder in addition to the above lease payments.  To operate & maintain the private development for the lease period of 30 years.

5.3 Responsibility of Railways  To lease out the land to the successful bidder for a period of 30 years  Removal of encroachment and encumbrances and handing over of free land to the successful developer

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Annexure 1 – Site Images

View from Jupiter Honda Showroom Building

View from 60’ wide road connecting RTC Complex

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17 Commercial Development of Vacant Land Plot Near Ambedkar Circle, Vizag

View from LIC Building, South Face of the Site

View from 60’ wide LIC road connecting Dwaraka nagar

View from 60’ wide LIC road connecting Dwaraka nagar

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Annexure 2 – Site Details

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Annexure 3 – Site Map

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6. Land Title & Sub-Division

6.1 Land Title: A Copy of Land Title is enclosed as Annexure-4.

6.2 Sub-Division of Land: The site is in Allipuram Ward, Block no.28, Survey filed 698 of Ambedkar Circle, Vishakhapatnam, Andhra Pradesh. The proposed area is to be given on lease is 1257 sqm only which is as per site measurement. The RLDA will arrange sub- division as per requirement before signing of Agreement, which is in process.

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21 Commercial Development of Vacant Land Plot Near Ambedkar Circle, Vizag

Land Title Annexure – 4

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