- **Prozone Realty Ltd** - Prozone Realty Ltd is a retail-led developer that builds and runs large shopping centres and residential projects, mostly in India’s faster-urbanising Tier-2 and Tier-3 cities. It was incorporated in 2007 and later secured investment from the UK’s Intu Properties, and rebranded from Prozone Intu Properties to Prozone Realty in May 2023 to sharpen its focus on high-quality mixed-use developments. The recurring approach is a two-speed model: a “Build & Lease” portfolio of malls that throws off steady rental income, and a “Build & Sell” residential-and-commercial engine that turns land into one-time sales proceeds, with each side feeding the other. # Business segments Three engines at different stages - two dominant regional malls that are being sold to unlock capital, a residential-for-sale pipeline that funded the malls in the first place, and a land bank that supplies both - all built on a fully paid-up land reserve. ## 1. Operating retail malls: the cash-generating anchors **Two regionally dominant shopping centres in Aurangabad and Coimbatore that earn recurring rent from national and international brands, and are now being sold to recycle capital into a premium Mumbai market entry.** - **Fixed rent plus a cut of shop sales** - the malls earn income through fixed licence fees with built-in escalations, plus variable rent based on a percentage of each retailer’s turnover, so the company benefits directly when its tenants sell more. - **Designed to dominate their catchment** - both malls use a Ground+1 horizontal layout with racetrack circulation and large parking areas, which makes them the default shopping and leisure destination for their entire region rather than just another high-street option. - **Tenant mix pulls crowds** - the malls house brands such as H&M, Marks & Spencer, INOX multiplexes, Shoppers Stop, Zudio and Croma, creating a combination of fashion, entertainment and daily needs that drew more than 20.8 million footfalls and generated retailer sales of ₹7.66 billion in FY25. ## 2. Residential and commercial development: the capital-unlocking engine **A “Build & Sell” pipeline of apartments, plots and office space across four cities that turns land into upfront cash, which historically funded the construction of the retail malls.** - **Infrastructure built before the first sale** - the company completes the entire clubhouse, site infrastructure and all regulatory approvals before launching a project, which it uses as a unique selling point to build buyer confidence and accelerate sales velocity in markets where credibility is scarce. - **Coimbatore towers delivering units now** - Phase 1 of the Coimbatore residential project comprises 540 apartments across three 18-floor towers; 402 units have been sold for ₹2,167 million, and handovers have begun with 88 units delivered across the Manhattan and Splendour towers. - **Nagpur: homes and future retail on one site** - 254 of 336 launched apartments have been sold for ₹1,780 million, with 209 units already handed over, while the same 15.7-acre parcel also holds 0.5 million sq. ft. of retail space under advanced approvals and a catchment population of 4.5 million. - **Indore plots and a Mumbai joint venture** - the Indore township on 43.5 acres is selling plotted developments in phases, with Phase 1A complete and Phase 1B sales underway. In Mumbai, the company entered the MMR market through a joint-venture SRA redevelopment project where Phase 1 and Phase 2 together have booked 806 of 1,015 launched units. ## 3. Land bank: the fully paid-up foundation **A 15.32 million sq. ft. land reserve, entirely debt-free and already owned, that supplies both the mall and residential pipelines without carrying-cost pressure.** - **No land debt, no hurry** - the entire land bank is fully paid-up and carries no debt, which means the company can phase development according to market demand rather than being forced to launch projects to service land loans. - **Prime locations in growing cities** - the land sits in high-growth urban corridors, with 2.10 million sq. ft. already developed and 13.23 million sq. ft. under various stages of development as of FY25, giving the company a long runway of projects it can activate when conditions are right. - **Land retained even when malls are sold** - in the mall disinvestment to Inorbit, vacant land parcels totalling roughly 6.44 acres from the Aurangabad SPV and 9.82 acres from the Coimbatore SPV are being hived off into separate wholly-owned subsidiaries that Prozone will keep, so the company exits the operating assets but holds onto the development land. # Group structure and partners **A network of project-specific SPVs, recently consolidated to 100% ownership in the core mall entities, with a restructured promoter group that ended years of ownership uncertainty.** - **Each city sits in its own company** - the business operates through separate Special Purpose Vehicles for each major project, with the parent company charging a management consultancy fee to these SPVs and providing loans at interest rates between 7% and 8.5% per annum to subsidiaries/SPVs and at 10% to others. - **Promoter stability after a decade of flux** - in December 2024, Apax Trust (whose beneficiaries are the family of Managing Director Nikhil Chaturvedi) acquired a 28.83% stake from the Mauritius-based seller Nailsfield Limited, taking combined promoter holding to 38.04% and ending a period of fragmented control. - **Original DNA from UK retail real estate** - the company was jointly developed with Intu Properties Plc, one of the UK’s largest retail real estate companies, which provided the design and mall-management expertise that shaped its early projects, while at the SPV level it secured investment from Old Mutual of South Africa and the Lewis Trust Group of the UK.