Prozone Intu Properties: Potential Multibagger TARGET 110/150+ IN 9-12 MONTHS (BIGGEST BENIFICARY OF REAL ESTATE & RETAIL BOOM AHEAD)

 

PROZONE INTU PROPERTIES formerly known as Prozone Capital Shopping Centres Limited (PCSC)  was demerged from Provogue on 10th Feb, 2012, and was listed on stock exchange on 12th Sept, 2012, is a joint venture between Provogue (India) and Intu Properties (UK), formerly known as Capital Shopping Centres (UK) in which Intu Properties holds 32.38% stake. Intu Properties invested Rs 202 crore for 25% stake (via FDI Account) in FY07.

 

Prozone INTU is a specialist retail and residential-led mixed-use real estate development company, harnessing Intu Properties plc experience as UK's largest retail real estate developer combined with Provogue (India) Ltd's in-depth knowledge of the Indian market.

Intu Properties plc is a FTSE-100 Company listed in UK and has an asset valuation of more than 9.9 billion pounds. Intu Properties plc owns 20 properties, including 9 of the top 25 shopping centers in UK with a dominant market share. Two senior officials of Intu Properties Plc sit on the board of Prozone Intu.

 They are set up to create, develop and manage regional shopping centres and associated mixed-use developments Pan-India. The company currently has shopping centres in operation and under construction, residential projects and commercial units for sale.

 

 

Business Strategy –
 To develop large scale Land Parcels for Mixed Use development.
 75% of the Land to be developed as Residential & Commercial – Build & Sell model
 25% of the Land to be developed as Retail – Build & Lease Model
 The Company follows this model so as the Cash Flows from Build & Sell portfolio facilitate the Build & lease model, Thus resulting into Debt Free Annuity Assets.
Residential Projects ‐ Strategy
 The Company invests and develops the entire Clubhouse and Site Infrastructure for the project upfront before the Launch of the Project.The Clubhouse features all the Modern amenities and is spread across 4‐5 acres of Land. It provides credibility to the business as all the Amenities are developed Upfront and also all the project permissions are in place, thus accelerates the sale of the project, resulting into better cash flows.
The company spends around Rs. 14 ‐15 cr on this upfront Infrastructure as it is cash rich and not levered. Also since it has economies of scale the cost is apportioned across large no of units resulting into cost effective way.  Due to this, the Company emerges as the strongest and the most credible player in the region. Eg, In Nagpur, Company has received an over whelming response is compared to the best players in the region such as Tata Realty, Mahindra & Godrej Properties.
STRONG LAND BANK
As per the company, it owns six land banks located in Aurangabad, Nagpur, Indore, Coimbatore, Jaipur and Mysore  comprising of a total of atleast 169.55 acres . As can be seen from the list of cities, these are mostly Tier-II and Tier-3 cities and the plans of the company is to develop regional shopping centres along with residential and commercial properties surrounding the retail properties.

  

  

 KEY INVESTMENT RATIONALS

Retail– Aurangabad Mall update - Build & Lease Model

New Stores opened in Q1 FY18 – Skechers, Kompanero, Y Casuals and Organic India

Upcoming stores: Good Traction seen in leasing activity as another three Brands are under fitouts stage with over 17,124 sq. ft including anchor brand Max. Also, another 40,163 sq ft of leasable area already signed up including anchor brand Big Bazaar

Retail – Nagpur: Retail design finalized and approvals have been applied for

Grand opening for Coimbatore mall with glitz and glamour, largest mall in the city of international standards with globally renowned brands and 85% leased out space • Coimbatore mall is received well by strong national and international brands, eight anchor brands occupying significant mall space • 9 screens multiplex from Inox, highlighting strengthening relationship with strong brands • Debt repayment at Coimbatore will accelerate further once mall stabilizes • Key brands occupying space at the mall:

Update - Build & Sell Model • Residential – Nagpur

• Project complied with RERA requirement, 336 units will be delivered under the project, revenue recognition continuing in a phased manner

• Registered with RERA; reforms expected to bring long term benefits for the sector • Focus on completion of project, tower wise handover to commence from Q4 FY 2017 – 18

BUY PLAYERS OF MARKET OWN BIG CHUNK IN THIS COMPANY  

OUR RECENT INVESTMENT PICKS GIVEN ON THIS BLOG GIVEN SOLID RETURN TO FOLLOWERS 

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