Kishore Biyani led Future Group’s Shopping Center Management & Realty Infrastructure company, Future Market Networks Ltd., (FMNL) has filed a merger scheme with Delhi based Star Shopping Centres Pvt.Ltd. (SSCPL).
Star Shopping Centres is a subsidiary of FMNL and is engaged in development and management of shopping centres and malls. FMNL currently owns 60 percent of SSCPL while the balance 40 percent is held by mall development professionals and experts, Pranay Sinha and Shilpa Malik.
SSCPL currently operates successful malls in Eastern India, with high sales per sq.ft. and occupancy. The malls have registered over 18 percent y-o-y growth in sales per sq.ft. over the past few years.
The Kolkata mall held by the company enjoys a 99.4 percent occupancy with prominent tenants such as Reliance Retail, Max, KFC, Big Bazaar, PVR Cinemas etc on long term leases. Another shopping centre, located in downtown Siliguri currently at 86 percent occupancy, is undergoing expansion and renovation and adding a new anchor, a 40,000 sq.ft. of department store. This shall give a further boost to the company performance.
With a well defined objective to expand its business, adding more shopping centers across prominent cities in India, the synergistic merger is expected to boost listed entity’s top line and bottom line A firm belief in India’s consumption story, Future Group has been aggressively, yet cautiously, adding businesses organically and inorganically to strengthen backward and forward integration across all facets of retail.