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Case study: Analysis of ‘’Proxima Centauri’’ Retail Mall.

Asset is ~990,000 SF retail mall which is currently ~69%
leased housing various retail category tenants. Existing tenants pay monthly rentals. The study requires you to
evaluate and recommend retail category for vacant stores so that the mall is fully lease (100%) in 24 months. Also
analyze its impact on the top-line

Location: Land location c/70/A, Y junction, Kukatpally, Hyderabad - Gmap link as follows:

https://www.google.co.in/maps/dir/17.4759217,78.4240253/17.4756845,78.4248215/@17.4765263,78.4208765,11
10m/data=!3m1!1e3

Asset size and tenant information: Provided in attached excel file

Methodology of research: Publicly available sources and guesstimation (assumptions should be ballpark)

Deliverable: PPT slides and back up workings in excel– (Structure of presentation should cover following headers)

City overview:

1. Peer Group City comparison (compare with 4 Indian metros) in terms of
 Population
 Income Distribution
 Per Capita Income & Retail Expenditure
2. City Overview in terms of
 Infrastructure Initiatives
 Commercial & Residential Market

Retail Market Evaluation:

1. Retail environment appraisal
 Stock supply situation highlighting the profile of existing competition
 City Growth dynamics vis-a-vis project location
 Retail space demand assessment –in the catchment
 Quantitative and qualitative opportunity assessment in terms of positioning

Retail Asset (’Proxima Centauri’’) Evaluation:

1. Asset Location Evaluation - Location strength (evaluating location strength of assets – how attractive
would the location be to attract the consumers in terms of travel time / accessibility)
2. Qualitative catchment (1 hr. drive time from location) analysis
 Population
 Purchasing Power
3. Design Evaluation - Prime objective is to identify and highlight reasons for structural vacancies. Retail
design evaluation will primarily involve study of following existing aspects:-
 Store sizing – anchor, mid-size and in-line stores
 Tenant Mix Profile by retail category (Clothing, Footwear, Jewelry & Watches, Electronics,
Accessories, Entertainment, F&B, etc.)
 Identify gaps in the retail offering based on current tenants mix

Recommendation:

 You need to recommend the category of tenants for vacant spaces based on the gap analysis (brand wise
analysis not required) to ramp-up the leasing activity (assume linear leasing i.e. 4-5 stores per month)
such that the mall is fully-leased (100%) in 24 months. Also, prepare a tenant mix profile when the mall is
fully leased
 Appropriate rent assigned to the new tenants based on store-size (you can assume existing stores as a
point of reference for rental benchmarking in case rental has not been assigned)
 Summarize month wise lease status (in %), impact on top-line to reflect month wise rentals (from April-17
to March-19) achieved by mall based on lease ramp-up schedule. (Assume that there is no growth in
existing rentals for the duration)

Note: The analysis envisages a hypothetical scenario as no such mall exists at the location mentioned above
(gmap indicates it’s a barren land)