Prozone, a subsidiary of Apparel fashion major Provogue has decided to invest Rs 1,000 crore for development of six large scale shopping centres in Tier II cities including Aurangabad, Surat and Indore and Mysore. These centres are expected to be operational within 18-36 months reports the Economic Times.
Earlier on Monday, the company had announced its joint venture with UK-based property company, Liberty International plc. Liberty will have a 25 per cent stake in Prozone, while its equity contribution in the six shopping centres will be over Rs 200 crore.
“There is a need for 190 million square feet of new retail space to match the 17 per cent organised retail growth being achieved by China. Thus, the business opportunity in India is to the tune of USD 21 billion,” said Nikhil Chaturvedi, Managing Director Provogue (India) Ltd. Although, “Organised retail is concentrated in six to eight top cities now. The opportunity is in the smaller cities where the bulk of the population lives, ” he added.
The JV will give Prozone access to the knowledge base of Liberty, including the systems, staff training and management skills. Liberty International has property investments of over £7.5 billion, of which regional shopping centres amount to some 85 per cent. They own nine of the top 25 shopping centres in the UK.
“India has the scale, potential and above all a youthful energy; we are staggered by the development of retail in India. With Prozone, we hope to take it to the next stage.” said David Fischel, Chief Executive, Liberty International.