Final Report 11.3 Acres Land Parcel Located in Thrissur, Kerala, India - 1
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Development Advisory Services for Proposed Mixed-Use Development Project on Final Report 11.3 Acres Land Parcel Located in Thrissur, Kerala, India - 1 - DEVELOPMENT ADVISORY SERVICES FOR PROPOSED MIXED-USE DEVELOPMENT PROJECT ON 11.3 ACRES LAND PARCEL LOCATED IN THRISSUR, KERALA, INDIA FINAL REPORT SUBMITTED TO KENZ INN COMMERCIAL COMPLEX LIMITED THRISSUR, KERALA, INDIA SUBMITTED BY Jones Lang LaSalle Property Consultants India Private Limited Level 3, Concorde UB City, No. 24, Vittal Mallya Road, Bangalore - 560 001 Ph : +91 80 4118 2900, Fax: +91 80 4118 2901 Internet: www.joneslanglassale.co.in MARCH 2014 Development Advisory Services for Proposed Mixed-Use Development Project on Final Report 11.3 Acres Land Parcel Located in Thrissur, Kerala, India - 2 - CONTROLLED COPY Report for Development Advisory Services for Proposed Mixed-Use Development Project on 11.3 Acres Land Parcel Located in Thrissur, Kerala, India Submitted to Kenz Inn Commercial Complex Limited Thrissur, Kerala, India Document Number: 2013/04/DEVELOPMENT ADVISORY/YU/BLR/428 Document Status: Final Report Date: March 18, 2014 Document prepared by: Abhilasha Bhagat & Y. Umakanth Document approved by: Girish K. S. No. of copies circulated: 02 Circulation Copy 01: Kenz Inn Commercial Complex Limited, Thrissur, Kerala, India Copy 02: Office Copy - Bangalore Contact Information For further information please contact: Mr. Girish K. S. MRICS Local Director - Strategic Consulting Jones Lang LaSalle Property Consultants India Private Limited Level 3, Concorde, UB City, #24, Vittal Mallya Road Bangalore - 560 001 Ph: +91 80 4118 2900, Fax: +91 80 4118 2901 Mobile: +91 9900154567 E-mail: [email protected] Development Advisory Services for Proposed Mixed-Use Development Project on Final Report 11.3 Acres Land Parcel Located in Thrissur, Kerala, India - 3 - TABLE OF CONTENTS 1 THE ASSIGNMENT ................................................................................................... 10 1.1 INTRODUCTION .......................................................................................................... 10 1.2 SCOPE OF WORK ....................................................................................................... 10 1.3 LIMITATIONS TO THIS ASSIGNMENT .............................................................................. 11 1.4 DISCLAIMER AND PROFESSIONAL INDEMNITY ............................................................... 12 2 PROFILE OF THRISSUR CITY .................................................................................... 13 2.1 THRISSUR SNAPSHOT ................................................................................................. 13 2.2 REGIONAL CONNECTIVITY ........................................................................................... 14 2.3 DEMOGRAPHIC CHARACTERISTICS .............................................................................. 15 2.4 SOCIO-ECONOMIC CHARACTERISTICS ......................................................................... 16 2.5 ECONOMIC CHARACTERISTICS .................................................................................... 17 2.5.1 FUNCTIONAL BASE OF THE CITY........................................................................................... 17 2.5.2 KEY ECONOMIC DRIVERS OF THE CITY ................................................................................. 17 2.6 KEY INFRASTRUCTURE INITIATIVES .............................................................................. 20 2.7 FUTURE GROWTH DIRECTIONS ................................................................................... 22 3 REAL ESTATE MACRO-MARKET TRENDS ................................................................. 23 3.1 GENERAL SECTOR TRENDS ........................................................................................ 23 3.2 RESIDENTIAL SUB-SECTOR ......................................................................................... 24 3.3 CORPORATE / OFFICE (COMMERCIAL) SUB-SECTOR .................................................... 33 3.4 ORGANIZED RETAIL SUB-SECTOR ............................................................................... 35 3.5 HOSPITALITY SUB-SECTOR ......................................................................................... 40 3.6 MICE SUB-SECTOR ................................................................................................... 41 3.6.1 GENERAL SECTOR TRENDS ................................................................................................. 41 3.6.2 MICE MARKET - INDIA’S GLOBAL POSITION .......................................................................... 42 3.6.3 THE INDIAN CONVENTION INDUSTRY .................................................................................... 44 3.6.4 SUMMARY FINDINGS AND OBSERVATIONS ............................................................................ 47 3.6.5 CONVENTION INDUSTRY IN KERALA ...................................................................................... 47 3.6.6 LULU INTERNATIONAL CONVENTION CENTER ........................................................................ 49 4 PROJECT SITE ANALYSIS AND DEVELOPMENT CONTROL & REGULATIONS .................. 54 4.1 DETAILS OF THE PROJECT SITE ................................................................................... 54 4.2 LOCATION OF THE PROJECT SITE ................................................................................ 54 4.3 DESCRIPTION OF THE PROJECT SITE ........................................................................... 55 4.4 INFRASTRUCTURE DEVELOPMENT INITIATIVES NEAR THE PROJECT SITE ........................ 59 4.5 SWOT ANALYSIS FOR THE PROJECT SITE ................................................................... 59 4.6 APPLICABLE DEVELOPMENT CONTROLS AND REGULATIONS .......................................... 59 5 EVALUATION OF DEVELOPMENT MIX OF THE PROJECT .............................................. 62 5.1 PROPOSED DEVELOPMENT MIX ON THE PROJECT SITE ................................................ 62 5.2 MARKET FEASIBILITY MATRIX FOR OVERALL DEVELOPMENT ......................................... 63 6 CATCHMENT DELINEATION AND MICRO-MARKET ASSESSMENT .................................. 67 6.1 BACKGROUND ............................................................................................................ 67 6.2 CATCHMENT DELINEATION AND ANALYSIS ................................................................... 68 6.2.1 CATCHMENT DELINEATION .................................................................................................. 68 6.2.2 CATCHMENT ASSESSMENT AND ANALYSIS ............................................................................ 70 6.3 REAL ESTATE MICRO-MARKET SUB-SECTOR TRENDS .................................................. 74 6.3.1 MICRO-MARKET OVERVIEW ................................................................................................. 74 6.3.2 RETAIL SUB-SECTOR .......................................................................................................... 75 6.3.3 COMMERCIAL / OFFICE SUB-SECTOR ................................................................................... 81 6.3.4 RESIDENTIAL SUB-SECTOR ................................................................................................. 84 Development Advisory Services for Proposed Mixed-Use Development Project on Final Report 11.3 Acres Land Parcel Located in Thrissur, Kerala, India - 4 - 6.3.5 HOSPITALITY SUB-SECTOR ................................................................................................. 84 7 RETAIL SHOPPING BEHAVIOR ANALYSIS .................................................................. 85 7.1 GENERAL................................................................................................................... 85 7.2 RETAIL SHOPPING BEHAVIOR OF TARGET POPULATION ................................................ 85 8 DEMAND SUPPLY ANALYSIS FOR RETAIL MALL AND BROAD TENANT MIX .................. 91 8.1 GENERAL................................................................................................................... 91 8.2 METHODOLOGY ADOPTED FOR DEMAND SUPPLY ANALYSIS .......................................... 91 8.3 DEMAND ASSESSMENT FOR RETAIL SPACE .................................................................. 92 8.4 DEMAND-SUPPLY-GAP ASSESSMENT .......................................................................... 99 8.5 BROAD TENANT MIX AND POSITIONING ...................................................................... 100 9 DEVELOPMENT MIX, BUSINESS PLAN AND FINANCIAL FEASIBILITY ASSESSMENT ...... 105 9.1 PROPOSED DEVELOPMENT MIX ON THE PROJECT SITE .............................................. 105 9.2 OVERALL PROJECT CONFIGURATION ......................................................................... 106 9.2.1 BUILT-UP AREA AND SALEABLE AREA STATEMENT ............................................................. 106 9.2.2 CAR PARKING PROVISION ................................................................................................. 106 9.2.3 DEVELOPMENT PHASING ................................................................................................... 107 9.3 KEY COST AND REVENUE ASSUMPTIONS ................................................................... 107 9.4 ESTIMATED PROJECT COST ...................................................................................... 112 9.5 CAPITAL STRUCTURING