DLF plans to build 10 malls by 2006

The DLF Group is looking at malls, multiplexes and family entertainment centres (FEC) in a big way. The group expects to set up multiplexes as the "anchors" in most malls to attract more footfalls.

It is estimated that India will have nearly 230 malls by 2006 and around 40 per cent of this will be located in Delhi. The DLF Group aims to bag about 10 such projects in the next few years.

"DLF will primarily focus on making multiplexes an integral part of the retail business. It will be the growth driver for most malls," senior DLF executives told Business Standard.

DLF's ventures like DT Cinemas, City Centre, Mega Mall are doing good business despite huge operational cost.

"But we will not shy away from such projects," the executives said adding: "Delhi is currently seeing a 25 per cent occupancy of the family entertainment centres and it is expected to increase manifold with better accessibility and connectivity with other regions."

DLF, which is primarily based in Delhi is also scouting for real estate investments in several other cities besides Chandigarh, Amritsar, Mumbai and Hyderabad. The group is also eyeing the eastern market and will buy land in Kolkata to extend its retail and mall management activities.

"Nothing, however, has been finalised yet," the sources pointed out. According to infrastructure consultancy outfit Feedback Ventures, the number of malls with multiplexes will be increasing steadily as developers are now going for lease of family entertainment centres paces.

"Developers usually lease out 'bare shell' spaces to clients for a certain number of years who will then bring in the required technology and resources for the multiplexes. So multiplexes have become more viable," Feedback Ventures officials said.