Yatra invests Rs 38 crore in Modi Build-Well

Euronext-listed Yatra Capital will invest ¤6.75 million (nearly Rs 37.86 crore) in a joint venture (JV) with Ahmedabad-based Modi Build-Well. The JV will develop a 5.90 lakh sq feet shopping mall in Bhavnagar. Modi Build-Well (MBL) is a subsidiary of the Himalaya Group based in Ahmedabad.

Approximately 30 per cent of the shopping mall has already been pre-leased to leading retail brands including Pantaloons, Globus, Big Bazaar and Adlabs, a release from the company said.

The current investment is fifth among the company's Indian investments with other being investment in properties in Pune, Nasik and others. Following this, Yatra has invested euro79.32 million of the euro100 million that it raised in December 2006.

"We believe in the long term retail story in India and invest in the sector going forward," said Ajoy Veer Kapoor, managing director, Saffron Asset Advisors, which advises Yatra on its investments in India.

At present, organised retail sector accounts for approximately 4 per cent of the overall retail industry. However, the organised segment is expected to grow from about $8-10 billion currently, to more than $100 billion in the next few years, with an annual growth rate of more than 34 per cent.

There is a need for an estimated 500 million sq ft of planned retail space, as per the estimates of ICICI Property Services and KSA Technopak.