KOLKATA RETAIL SEPTEMBER 2019 MARKETBEAT

5.97% 4-8% 0.58 msf MALL VACANCY Q - O - Q RENT GROWTH -S E L E C T UPCOMING MALL ( Q 3 2 0 1 9 ) MAIN STREETS & SUBMARKETS SUPPLY (Q4 2019 - 2020)

HIGHLIGHTS ECONOMIC INDICATORS 2019 Low vacancy impacting traction in malls 2017 2018 Forecast Mall vacancy recorded a marginal decline q-o-q to 5.97%, with prime malls already running at high GDP Growth 7.2% 6.8% 6.1% occupancies. This resulted in an increased retailer traction on main streets during the quarter. So, CPI Growth 3.6% 3.5% 3.4% while prominent main streets like Park Street, Chowringhee Road and Hatibagan contributed Consumer spending 7.4% 8.1% 5.5% extensively to the leasing activity in Q3, few retailers were also keen to explore spaces vacated by Govt. Final other brands in prominent malls like South City and Quest. Negligible mall supply getting added Expenditure Growth 14.2% 9.2% 6.0% over the last few quarters and very low upcoming supply by 2020, is also likely to affect traction in Source: Oxford Economics, RBI, Central Statistics Office malls in the coming quarters, except a retailer churn, while prominent main streets are expected to perform well. MALL SUPPLY / VACANCY

700 7% Fashion and F&B segments driving demand 600 6% 500 5% Fashion, apparel and accessories followed by F&B continue to remain the most active retail 4% 400 segments in terms of space take-up with brands like Zudio, L’Occitane, Nykaa, VIP, Burger King, 3% 300 2% and Taco Bell among others taking up space this quarter. KIA Motors – looking to expand their 200 1% 100 0% presence across major Indian cities have also taken up space in Central Kolkata during the quarter. 2012 2013 2014 2015 2016 2017 2018 Q1 Q2 Q3 2019 2019 2019 Supply ('000 sf) Vacancy % Rents appreciate in select submarkets Source: Cushman & Wakefield Research Park Street, one of the most prominent main streets, recorded rental growth of 8% q-o-q , retaining its popularity among retailers. Among the mall submarkets, South, East and Rajarhat have A Cushman & Wakefield recorded rental appreciation of 4-6% q-o-q backed by a rapid churn in key, quality malls. Rents are Research Publication likely to see further growth, with continued retailer demand for space in those malls amid limited www.cushmanwakefield.com future supply. KOLKATA RETAIL MARKETBEAT SEPTEMBER 2019

Rohan Sharma PRIME RETAIL RENTS INR EURO US$ Q-O-Q Y-O-Y SF/MTH SF/YR SF/YR CHANGE CHANGE Director, Research MAIN STREETS Tel: +91 124 4695555 [email protected] Park Street 540 83 92 8% 8% Camac Street 450 69 76 0% 0% Lindsay Street 450 69 76 0% 0% Elgin Road 325 50 55 0% 0% Theatre Road 230 35 39 0% 15% Gariahat 250 39 42 0% 0% Shyambazar 160 25 27 0% 0% Hatibagan 160 25 27 0% 0% Kankurgachi 200 31 34 0% 0% VIP Road 150 23 25 0% 0% INR EURO US$ Q-O-Q Y-O-Y PRIME RETAIL RENTS - MALLS SF/MTH SF/YR SF/YR CHANGE CHANGE South Kolkata 425 66 72 6% 6% East Kolkata 415 64 70 4% 4% Rajarhat 130 20 22 4% 4% Elgin Road 525 81 89 -5% -5% Howrah 210 32 36 -7% -7% Park Circus 600 93 102 0% 0%

Note: Asking rent (INR/sf/month) on carpet area of ground floor Vanilla stores is quoted US$ 1 = INR 70.79, € 1 = INR 77.81

SIGNIFICANT LEASING TRANSACTIONS

PROPERTY LOCATION TENANT SF A Cushman & Wakefield Chowringhee Road Zudio 8,000 Research Publication Main Street Acropolis Mall Rajdanga Main Road Inc.5 2,000 New Town Croma Cushman & Wakefield (NYSE: CWK) is a leading global real estate Main Street 10,000 services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate Quest Mall Park Circus Nykaa 1,000 services firms with approximately 51,000 employees in 400 offices and 70 countries. In 2018, the firm had revenue of $8.2 billion across Main Street AJC Bose Road KIA Motors 2,000 core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter. SIGNIFICANT PROJECTS UNDER CONSTRUCTION

PROPERTY LOCATION SF COMPLETION www.cushmanwakefield.com Genexx Square Joka 275,000 Q1 2020

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