Europe's Plaza is hardselling a Rs 5,000 crore pan-India plan

The firm will develop 50 entertainment, commercial centres

MUMBAI: Europe's Plaza Centres NV has finalised plans to invest at least Rs 5,000 crore in India. A global major in the business of developing and managing shopping, entertainment and commercial centres, the company will develop 50 such centres across the country in the next 5-7 years.

According to Abraham (Rami) Goren, executive vice-chairman, Elbit Imaging Ltd, owners of Plaza Centers, work has already begun on five entertainment and commercial centres. "There are two projects coming up in Pune. The one at Koregaon is spread across 5 lakh sq ft while the Kharadi project is a much larger one covering an area of 1 million sq ft," said Goren. Financing the developments in India will be done by the parent company that is based out of Israel.

The company is targeting potential markets in tier I, II and III cities, besides the metros. In fact, there are projects already under planning stage in cities like Bangalore, Kochi, Chennai and Thiruvananthapuram.

"The way we work is by partnering with various developers in target markets. As for the developments already under execution, we have got into multiple partnerships in these locations and work is expected to start soon," said Yoram Barak, executive director, India real estate for Elbit India Real Estate Pvt Ltd.

Both Goren and Barak refrained from divulging any names of existing partners. However, market rumours indicate that one of the Pune projects is in association with Atul Chordia of Panchshil Realty.

Elaborating on their concept of Plaza Centers, Goren said that these would be world-class entertainment and commercial centres and will replicate the brand's global experience, expertise and success in India. The developments will not be restricted to shopping, entertainment and commercial space and will also include hotels, serviced apartments wherever possible.

In fact, Elbit Medical Imaging (EMI) has acquired and developed six hotels and an apartment hotel in five countries over the last 12 years.

The countries where the company has hospitality projects include The Netherlands, Belgium, the United Kingdom and Romania. Additionally, EMI is currently developing another hotel in Bucharest, Romania.

"Plaza Centers has been instrumental in creating organised retailing in Eastern Europe after the collapse of communism. We have a consistent track record of success in some of the most difficult markets in the world," said Goren.

Listed on the London Stock Exchange (LSE), Plaza Centers NV currently operates from Bangalore under the name Plaza Centres India. The company is in the process of setting up offices across several key Indian cities.

Since its inception a decade ago, the company has created 42 entertainment and commercial centres across nine countries in Europe.