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Kampu Kothi, Gwalior Project Information Memorandum (PIM)

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PROJECT INFORMATION MEMORANDUM

FOR

GRANT OF LEASE FOR COMMERCIAL DEVELOPMENT OF VACANT LAND LOCATED AT KAMPU KOTHI, GWALIOR

MINISTRY OF RAILWAYS

RAIL LAND DEVELOPMENT AUTHORITY

May 2015


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1. INTRODUCTION

The Indian Railways is desirous of commercial development of their plot at Kampu Kothi, Gwalior. The said objective is being carried out by RLDA, a statutory body of Indian Railways formed through an amendment to the Railway Act, 1989. By this amendment, the Railways are authorized to carry out commercial development of railway land. Jones Lang LaSalle Property Consultants (India) Pvt. Ltd. (JLL) has been appointed by RLDA as project advisors for assisting them in carrying out an assessment of the real estate potential of the vacant land located plot at Kampu Kothi in Gwalior and to select a developer through an open, competitive bidding process. JLL was involved in the site survey, assessment of on site infrastructure, stakeholder interaction, discussions with development authorities and site analysis with respect to the macro and micro real estate market trends which led to identification of development options and product mix. Conceptual development plans were drawn up for suitable options based on the applicable development controls and guidelines of the local development authority. This PIM provides the site information, development controls, building guidelines and illustrative site plan based on the above assessment. Applicants are advised to make an independent assessment of the project at their end, make site visits and carry out necessary investigations and due diligence. Jones Lang LaSalle or Rail Land Development Authority is not liable in relation to the accuracy or completeness of the information contained in the Information Memorandum and any liability therefore is hereby expressly disclaimed.


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2. SITE FEATURES

2.1 Location and Area

Subject site falls in Kampu area and is located in southern quadrant of Gwalior city. The subject land parcel measures approx. 1.12 acres or 4,513 sq.m (as per the revised area as indicated by Client), strategically located on Kamla Raja Girls College Road (KRG Road) leading to BADA area, which is traditional commercial and retail center of Gwalior. A total of approx. 110,681 sq ft built-up area can be positioned at subject property. Apart from KRG road subject property is also assessed through 30 ft wide Kampu-Shivpuri link road. These two roads connects site to other nearby residential, commercial, retail and suburban areas of Gwalior. Existing 100 feet wide KRG road abutting the subject property connects it with all the major landmarks within the city. As indicated by the client, commercial development is permitted at the subject site. Subject site enjoys good connectivity with the rest of Gwalior and with a medium level of visibility at the city level.

The site surroundings are as follows:

North PWD Bungalows

East Gwalior Potteries

West Railway Reservation Centre, Amkho Bus Stand

South KRG Main Road and J.A. Hospital

Table No. 1 Distance from Landmark

2.2 Neighborhood Profile

Subject property is primarily part of old Gwalior city developed around the historic BADA area housing major government buildings including Victoria market, Town Hall, MC office, banks, general post office, among others. Besides this all the traditional markets/ bazaars like sarafa bazaar, Lohiya Bazaar, Daulat Ganj, Dal Bazaar, among others are in primary catchment of subject property. Major institutional developments like J.A. Hospital, Nursing Hostel, KRG College, Kamlaraja Hospital, MLB College, Ministry of Family Welfare and Healthcare, Mahavir Bhavan also fall in primary and secondary catchment of subject property. In the immediate neighborhood of subject property lies private bus stand, unauthorized shops, Nagar Nigam Ward office, PWD bungalows, industrial unit of Gwalior potteries, J.A. Hospital, KRG College, among others.

Landmark Distance from site (km)

Railway Station 7 kms

Central Bus Stand 7 kms

Jiwaji University 5.5 kms

BADA area 2 kms

J.A. Hospital

Southern boundary wall of the hospital faces the subject property

KRG College 0.3 kms

Fort 7 kms


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Map 1: Location of Subject Site

Site

RTO Offic

e

Katora

Tal

MLB

College

KRG

College

J.A.

Hospital

Kampu

Resi. Area

Institutional

Area

Private

Bus Stand

Gwalior Potteries


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Map 2: Site Boundary Railway Land


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2.3 Infrastructure Availability

CRITERIA CHARACTERISTICS

Site Area Approx. 4,513 sq mt or 1.12 acres

Present Use The site at present is vacant with presence banyan tree, dilapidated structures and vegetation.

Surrounding Areas The site is surrounded by many institutional and residential areas.

Access Road The site is abutted by Kamla Raja Girls College Road, existing 100 feet wide road.

Frontage on Major Roads

The site has approx. 60.473 mt (198.35 ft) frontage on the KRG Road

Topography The site is generally flat.

Water Availability Yes

Major Infrastructure Project

Main access road (KRG Road) has been widened to 100 feet from 60 feet earlier, thus according superior accessibility


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3. REAL ESTATE MARKET SUMMARY

3.1 Commercial Property Markets

Major commercial pockets of city are City Centre area, BADA area, Gole ka Mandir area and Phulbag Chowk among others. Phulbag Chowk and BADA area are dominated by commercial complexes owned by Govt whereas City Centre area and Gole ka mandir area are dominated by private ownership of commercial complexes. However, growth of commercial activities in near future is moving towards New City Centre near to Sirol Road. Table below explains about commercial developments of city. Rentals in these developments vary according to floor, location, specifications of building, services and amenities, among others. Lease rent in commercial complexes (upper floors) in the study region

Name of Complex

Location Total Super Built Up Area

(sq ft)

Indicative Lease

Occupancy/ Absorption

(%)

Project Status

Orion Tower City Centre 40,000 60 80 Operational

Narayan Krishna

City Centre 40,000 75 85 Operational

Amandeep Complex


Alaknanda Complex

City Centre 81,600 55-75 95 Operational

Fortune Plaza


Adhena City Centre 90,000 100-110 10 Under construction

Damodar Complex

Gole ka Mandir

9,800 35-40 40 Operational

Kansana Tower

Phulbag 9,000 120 30 Under construction

Gyan Ganga Jayendraganj 16,000 125 75 Operational

Majority of the commercial activity has been in and around City Centre area which is being developed as mixed use commercial complexes housing retail on lower floors and offering upper floors for office use. The rentals for ground floor are relatively higher as compared to upper floors since majority of ground/ lower floors are occupied by retailers. The rentals in these areas vary from INR 150 per sq ft to INR 90 per sq ft. The rentals in commercial complexes located off the road are nearly half the rentals observed in developments located along main road enjoying good visibility and access. 3.2 Retail Property Markets

The retail markets of Gwalior can be broadly categorised into traditional high street areas and modern organised market area. The traditional retail areas can be broadly mentioned as BADA area and old portion of city near Fort known as Hazira market. Traditional retail area is located in BADA comprising of specialized markets such as

Subhash market & Nazar Bagh market

Sarafa Bazaar

Daulatganj

Topi market

Lohia market

Shinde ki Chwani

Jayendraganj


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These markets have remained same over the years and cater to old parts of city. There have not been major changes and these continue to be dominated by local retailers and non-branded outlets. However, few of the branded stores could be seen in Sarafa Market as it is believed to be the most up-market and frequently visited market of city. Apart from retail market, BADA also comprises of few public buildings housing offices such as General Post Office, State of India, Govt. printing press etc. The modern retail locations in Gwalior have gained prominence over the last four to five years with established locations like:

City Centre

Near Padav Chowk

Near Phulbag Chowk Currently, city has a single large format retail development known as Din Dayal Mall (DD Mall) located on Maharani Laxmi Road near Phulbag Chowk. Though number of organized retail projects were announced by developers 4-5 years ago, none of these have been completed and are still in planning stages or are stuck in approval process. Major brands in apparels and footwear have been observed in DD Mall. Retailers such as Big Bazaar, Reliance Trends, Reliance Digital, Dominos and McDonald’s are prime occupiers of the mall. The rentals are in the range of INR 140 per sq ft per month to INR 70 per sq ft per month depending upon floor, location and area of shop. Traditional retail area of city mainly deals in apparels, footwear, electronic and kitchen appliances, jewellers, general stores etc catering to daily needs and occasional requirement of local populace. Table below explains lease rent on high street retail market of city

Location of retail market

Typical area of shops (sq ft)

Indicative Range of rent

(INR)

Tenants

Subhash & Nazar Bagh market (BADA Area)

91-169 80-100 Non branded apparels, footwear and general stores

Sarafa Market 700-900 100-150 Local Jewellers, Tara Jewellers, Mrignaynee, Tanishq, Raymond, John Players

Daulat ganj 500-600 90-100 Electronic Appliances, Furniture, Hardware and Sanitary Ware

Hazira market 84-100 60-75 Local market

Shinde ki Chawni 100-120 80-100 Automobile spare parts


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3.3 Circle Rate

The Circle Rate for subject property for year 2014 is fixed at INR 27,000 per sq mt and INR 40,500 per sq mt for residential and commercial segment on land area basis. Kindly find below a relevant extract on this aspect.


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4. PROPOSED DEVELOPMENT MIX AND CONCEPTUAL LAYOUT PLAN

4.1 Site Strengths & Opportunities

Achieved built up area has been calculated considering the maximum FAR and ground coverage for 1.12 acres of land (i.e. 48,578 sq. ft.) on the Subject Site. Also it has been derived from the permissible/achievable FAR, maximum coverage and the setback norms mentioned for Commercial use (Business) in the development control regulations. The resultant area available for real estate development is approx. 4,513 sq mt. The applicable FAR shall be 2.0 and 2.40 on an area of 4,513 sq mt and 524 sq mt respectively (as per Madhya Pradesh Transferable Development Rights Rules, 2010, clause 6 (2) page no 5 and as per Madhya Pradesh Land Development Rules 2012, clause 42 (1) page no 516 (57). As per our discussions with officials of Gwalior Development Authority (GDA) and Municipal Corporation Gwalior (MCG), current and proposed land-use of subject site is residential (as per Gwalior Master Plan 2021). However subject property abuts on 30 mt wide road hence entire subject site area can be converted into commercial use (as per Madhya Pradesh Land Development Rules 2012, clause 42 (1) page no 516 (57).

Strengths:

Subject site enjoys good connectivity at the city level given its strategic location and accessibility from main KRG Road leading to CBD area (BADA). Given excellent road networks and quality of roads, all major landmarks are within a driving time of 15 to 20 minutes from the subject property,

Subject site has good visibility, both in terms of physical attributes and presence of city level population that are attracted to various locations in proximity of the subject property. Subject site enjoys an excellent frontage of around 200 ft on the main KRG road,

Subject property has a strong student population base and presence of medium income group in the immediate vicinity that will provide ready clientele for the mid-level commercial activity,

Plain topography and regular shape of subject property resulting in minimum wastage of saleable area,

Site is located within the Municipal limit of Gwalior therefore likely to enjoy the infrastructure provisions made by the government authority.

Opportunities:

Lack of any competition in immediate and primary catchment of subject property is likely to accord first mover advantage

Presence of city-level landmarks in proximity of the subject property is likely to position high volume of floating population in vicinity of the subject property, that may be attracted to the proposed developments at the subject property.


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4.2 Project Concept (Illustrative only)

Results of demand analysis and permissible land use for the subject site, a comprehensive development scheme have been planned by the consultants for the entire site of about 4,513 sq mt at Kampu Kothi, Gwalior.

4.3 Indicative Product Mix Commercial Development

Product Mix Percentage Area (acres) Net Plot Area (sq.ft.)

Achieved Built – Up Area (sq. ft.)

Retail Development 57.00% 0.64 27,689 63,077

Commercial (Office) 43.00% 0.48 20,889 47,584

Total 100.00% 1.12 48,578 1,10,661


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5. SITE VISUALS

Internal view of subject site View of KRG Road

Current main entrance to subject property Existing reservation centre adjacent to

subject site

View of dilapidated structures within subject

site View of temple within subject site

Northern view of subject site View of Amkho Bu stand and abutting road

on western aspect


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6. DISCLAIMER

The “Project Information Memorandum (PIM)” provides the information about the proposed commercial development on vacant land located at Kampu Kothi, Gwalior to enable the prospective bidders to make an assessment of the project and help them in submitting their Applications. However the applicants may visiting the Project site and ascertaining themselves about the site conditions, location, surroundings, access to site, applicable laws and regulations as may be considered relevant by them. Jones Lang LaSalle or Rail Land Development Authority is not liable in relation to the accuracy or completeness of the information contained in the Information Memorandum and any liability therefore is hereby expressly disclaimed.

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