DLF, mall retailers still poles apart on rental issue
Neeraj Thakur / New Delhi Apr 21, 2009, 00:28 IST
DLF, the country’s largest property developer, might offer another three rent-free months to retailers at its malls in South Delhi, who have begun an agitation against the company.
The retailers had already shut their shops or threatened to, to protest at a situation of high costs coupled with low customer footfalls. They hold DLF responsible for both problems, saying it has been unresponsive and insensitive, forcing them on to an agitational path.
The malls in question are at Vasant Kunj and Saket in South Delhi. Retailers at the former want a rent-free period for a full year and a 50 per cent discount on rentals for a second year. Those at Saket want at least a 50 per cent discount on first-year rentals and a lesser quantum in the next year. The DLF rent waiver will end next month.
The average monthly rentals for DLF’s Vasant Kunj and Saket malls for ground floor, first floor and second floor are Rs 225, Rs 180 and Rs 150 per sq. ft., respectively. “We understand the problems faced by our tenants due to ongoing slowdown and may think of extending the rent free period by three months. However, we will not give in to any such demand which will hurt our business prospect in future,” said a DLF official, who declined to be identified. “The retailers and the company will have to agree to terms which are beneficial for both the parties.’’
There was a meeting between retailers and the developer on Friday, but there was no agreement and there will be another meeting in a few days.
“Since the Vasant Kunj mall is only 20 per cent operational and it will take a full year for the new retailers to come in, the footfalls will remain very low. In this scenario we would be able to pay full rentals only from the third year,” said Tarun Manglani, president, Malls Welfare Association, DLF Place Vasant Kunj.
“The Saket mall is doing better than the Vasant Kunj mall and that is why we have asked for only 50 per cent discount on rentals in the first year, as compared with full-year rent-free period for the Vasant Kunj malls,” added Manglani. DLF Place, Saket, has 60 per cent occupancy.
Problem with DLF is complete lack of business ethics and transparency. They cheat customers from the word "go". Take their latest launch - Capital Greens Delhi as a case. They launched on the promise that delivery later than 3 years from DATE OF BOOKING would entitle the buyer to compensation for such delay. Even as the cheques for booking amount were being presented in banks, the customers realized that the clause in the application form was different from the one in the emails - it said delay would be calculated from DATE OF AGREEMENT, for which its does not set any time. By past experience, it ma take 6-18 months to sign the Agreement depending on status of approvals. So, DLF has already frauded buyers of Rs. 90,000-270,000 by this rather simple change to the language. This is highway robbery by the big daddy of real estate.
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