Real estate firm Akruti City has identified new growth opportunities by formalizing joint ventures (JVs) with the Gujarat government and the National Commodity and Derivatives Exchange of India (NCDEX). The aim is to redevelop public bus terminals and establish warehousing facilities across the country.
Bus Terminal Redevelopment
Akruti City plans to transform bus terminals into integrated bus stations that will also serve as commercial and retail hubs. According to Akruti City MD Vimal Shah, bus terminals are excellent locations for commercial and retail purposes due to their high passenger mobility compared to traditional malls and shopping centers. This initiative not only offers improved passenger comfort but also capitalizes on prime locations.
Many state governments and Indian Railways have identified bus terminals and railway stations as ideal sites for development due to rising passenger traffic. In Maharashtra, the redevelopment of BEST terminals has already commenced, while the Railways has earmarked 22 stations for transformation into station-cum-malls and hotels through public-private partnerships.
Initial Phase
In the first phase, Akruti City will redevelop 5-7 bus terminals in Gujarat towns such as Baroda, Surat, and Mehsana. This initial phase will provide Akruti around 2-3 million square feet of area for commercial and retail development.
Warehousing Facilities
As part of its JV with NCDEX, Akruti City will develop 17 warehousing facilities across various locations in the country. These facilities will be developed and managed by Akruti for NCDEX, tapping into a new growth area for the company.
Current Portfolio
Currently, Akruti City possesses a land bank of 107 million square feet across Mumbai, Panvel, Pune, and Baroda. Additionally, Akruti, in partnership with TCG Realty, is developing a biotech park on 700 acres at Savli near Vadodara.
Shares of Akruti City rose by 3.64%, closing at Rs 966.15 on the Bombay Stock Exchange.