The Indian retail sector has attracted Rs 1,000 crore private equity investment in the March 2018 quarter, taking the cumulative investment since 2015 to Rs 5,500 crore.

“Private equity investors have shown confidence in the future trends of Indian retail real estate and have started to make large value as well as long-term commitments towards the sector,” real estate consultant JLL has said in a release.

The steady increase in interest from private equity investment companies has propelled the developers of retail malls to re-evaluate their portfolio to include three determining factors – product, catchment and customer experience as they would be at the core of creating a successful retail space.

The key criteria for choosing a property for investment have been the rental values, vacancy levels, tenant mix, design and quality of mall management, location and ownership. It is estimated that in the next five years there will be 90 malls spread over 34 million square feet.

Of the expected new malls, 62 per cent will be in the category of superior malls, while only 10 percent will remain in the poor category. About 28 per cent malls in the next five years will be considered average.

Most existing malls will also align to these categories by going into redevelopment, redesigning or changing their tenant mix. Certain properties may also choose to opt out of business, putting the real estate to alternate use.

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