Real estate firm Akruti City has identified some alternative growth spots. It has formalised JVs with the Gujarat government and the National Commodity and Derivatives Exchange of India (NCDEX) to redevelop public bus terminals and warehousing facilities, respectively.
While bus terminals will be converted into bus stations-cum-commercial and retail hubs, the company plans to set up 17 warehousing facilities for NCDEX across the country.
“Bus terminals are one of the ideal commercial and retail destinations,” said Akruti City MD Vimal Shah. “Compared to malls and other shopping centres, human mobility at bus terminals is comparatively high. Passengers would be offered more comfort.”
Many state governments and the Indian Railways have zeroed in on bus terminals and railway stations as ideal locations for development as the passenger traffic has been on the upswing.
Some state governments, including Maharashtra, have already started the redevelopment work for BEST terminals while the Railways has identified 22 stations to be converted into station-cum-malls and hotels through public-private participation.
In the first phase, Akruti City will redevelop 5-7 bus terminals in towns such as Baroda, Surat and Mehsana in Gujarat. Akruti, in turn, will get around 2-3 million square feet of area for commercial and retail development.
Currently, Akruti City has 107 million sq ft of developable land bank spread across Mumbai, Panvel, Pune and Baroda. Akruti, in association with TCG Realty, is developing a biotech park on 700 acres at Savli near Vadodara. Shares of Akruti City rose 3.64% to close at Rs 966.15 on the Bombay Stock Exchange.
On Akruti’s JV with NCDEX, Mr Shah said, “Warehousing is one of the new growth areas we have identified. The JV with NCDEX envisages development of 17 warehousing facilities for the commodity exchange at various locations in the country. We will develop and manage these facilities for NCDEX.”