'There is enormous potential for growth of organised retail'

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Atul Ruia is the managing director of Mumbai-based real estate developer The Phoenix Mills Ltd. The latter operates the 1.5-million sq ft High Street Phoenix — one of the most prominent retail destinations in the city. Phoenix has been undergoing redevelopment, which will now be unveiled in phases to the public. Ruia’s company is also expanding into other cities by acquiring key parcels of land besides tying up with regional developers. Ruia intends to go in for mixed-use development centres on the lines of Phoenix while undertaking projects alongside to set up malls and hotels with partners such as Entertainment World Developers Pvt Ltd (EWDPL) and Big Apple Real Estate. He has acquired significant stakes in these companies. In a conversation with FE’s Viveat Susan Pinto, he highlights how he intends going about his expansion plans. Excerpts:

What is your vision for Phoenix Mills in near future?

We are focussed on retail and hospitality. We have a number of projects and our task right now will be to execute them. If we manage to successfully complete all of them, there will be significant cash flow into the company. Our gameplan is to build large centres in metros and also have a pan-India rollout of shopping malls.

Most real estate developers are facing constrains on availability of land. How big a challenge is it for you?

I think our interest in our ventures and passion helps us through. For instance, I was after the GKW Engineering land in Bangalore, which we recently acquired along with real estate fund Yatra, for close to three years. Once the land was cleared for sale I could acquire it despite the fact that it was much sought after. Once we identify a property, we acquire it, quite often by getting investors who are keen on it. This way we are able to derisk ourselves. We also try and achieve financial closure as soon as possible.

Land prices have been coming down in some cities. That’s not the case in Mumbai.

I agree. Prices here have been steadily rising. I am not saying that the demand-supply situation hasn’t played its part. It has. But prices here need to come down. It would help.

What is the progress on the redevelopment of High Street Phoenix and when will it be completed?