LSE listed... Plaza Centers...

Monday, September 3, 2007 (Mumbai):

International retail biggies Tesco and Carrefour may be holding back their India foray for now but international real estate developers like Plaza Centers are in no mood to slow down their India plans.

Europe's largest shopping mall developer Plaza Centers knows very well that the European retailers will make their entry here sooner rather than later. And that's why it is now getting ready for the action with brand new malls.

The LSE listed Plaze Centers will pump in Rs 5,000 crore in India to set up 50 shopping malls in next 5-7 years.

"We are in talks with all the International retailers. It’s a matter of time before they come to India. We are already working with many in Europe and we will seek to extend that relationship in India," said Eli Mazor, MD, Plaza Centers.

Plaza knows if it has to succeed in a market like India, it has to rope in local partners to overcome hurdles on the ground. The Dutch mall builder has already tied up with real estate developer Panchshil and is talking to many more for partnerships.

"We understand that we need to have partners and are mainly tying up with all the top real estate players. We will also engage with retailers who may be interested in developing retail real estate," said Abraham (Rami) Goren, Executive Vice Chairman, Elbit Imaging.

International real estate developers like Plaza Centers are now betting big on the Indian retail space, preferring it even over China. However, much will depend on how well they can execute their plans given real estate is the single biggest challenge that the Indian retail faces at present.