Century Real Estate Holdings, among the top land bank holders in Bangalore, is understood to be closing in on a pact with Bharti Walmart to build its first cash & carry store in Bangalore. It is understood that store will be coming up on one of the land parcel held by Century on the new airport road, after the Hebbal flyover.
According to real estate industry sources, the pact is in the term sheet stage and the pact may soon be arrived at. Both Bharti Walmart and Century Grouo declined comment on the development. However, senior management officials of Century Real Estate confirmed that the pact is in the works. “We have signed a term sheet with Bharti Walmart recently and we are engaged with them for finalising the contract,” a senior official of Century Real Estate told Business Standard. Bharti Walmart has been scouting the real estate market in Bangalore for a while now. Bharti Walmart current has over 20 stores in India under the brand – Best Price.
The cash & carry segment has been witnessing some heightened activity in Bangalore with Reliance Market recently opening its first store, while Germany-based Metro Cash & Carry has been operating its two stores for more than a few years.
Real estate industry analysts further added that while Bharti Walmart’s store will be the front-end of the project, Century is planning a expansive residential complex as part of this development. It is understood that Century Real Estate has reached out to HNIs to raise resources for this project, promising good returns.
If Century manages to clinch this project, it will help them improve its cash flows, which offlate has taken a hit due to slackening sales. According to recent credit rating reports, Century has delayed payment of instalments and has been rescheduling payment terms with NCD investors. During August 2010, Century Real Estate had raised resources which are due to mature during August 2013.
ICRA in a recent report had raised the red flag on the stable real estate market in Bangalore stating that there has been a significant increase in residential projects under development in the last two years that could increase supply in the market.
Century Real Estate has a development portfolio of 21 million square feet comprising residential, commercial, hotels, educational institutions and integrated townships. In FY12 it reported a net profit of close to Rs 6 crore on revenues of around Rs 115 crore.