BENGALURU: With tenders recently awarded to revamp the existing commercial complexes of the Bangalore Development Authority (BDA) into swanky multi-storeyed malls, there is much reluctance on the part of present shop owners to move out of the premises so that civil works can begin. High-end offices, including cinema halls, are in the offing at its complexes at Austin Town, Indiranagar, Koramangala, RT Nagar, Vijayanagar, HSR Layout and Sadashivanagar.
With the shops being located in prime land in key areas in the City, BDA is now looking at cashing in on its assets. “The rents we get are abysmal and come to just `5 crore per year from all our shops put together,” said a top official. “We are looking at increasing our revenue through rentals to `45 crore by hiking the charges on par with other commercial structures,” he added.
To facilitate that, smart structures, enhanced security, lighting and parking facilities are being planned through a Public-Private Partnership model. BDA will also increase the Floor Area Ratio (FAR) in these complexes, which gives each complex at least 2.5 times more space than what it has now.
However, it is now facing stiff opposition from the existing owners to move out temporarily. “It will take a minimum of two years for the new complexes to come up,” another official said. “The shop owners will be rehabilitated and business will be affected to some extent. Many shops are between 30 years and 40 years old and in bad shape,” he added. The official also pointed out that due to the shabby appearance and lack of facilities, many shops lie unoccupied in Sadashivnagar, Indiranagar, Vijayanagar and Austin Town complexes.
Explaining the reluctance on the part of shop owners, he said, “BDA is being paid a pittance as rent presently by them. Shop occupants will have to pay the new rents when the complexes are refurbished. It will also include maintenance charges.”
Statistics provided by BDA reveal that 112 shops in Koramangala fetch it a rent of just `86 lakh annually; 85 shops in Austin Town, `12 lakh annually; 107 shops in HSR Layout `2. 3 crore each year; 60 shops in RT Nagar `20 lakh annually; 14 shops in Vijayanagar `20 lakh per annum and 21 shops in Vijayanagar fetch a rent of `8 lakh annually. Details on the Indiranagar complex were not readily available.
“Many have sold their shops to others and some sublet it to others without BDA’s permission. Some have used political influence and managed to occupy shops,” said an official familiar with all its commercial activities.