DS Group likely to acquire Noida's Great India Place mall for Rs 2,000 cr: Report

Noida-based DS Group, the maker of Rajnigandha pan masala, is planning to bid for the Great India Place Mall (also known as GIP) for Rs 2,000 crore, Mint reported on Tuesday, citing sources. It said the company was expanding its presence in the retail and hospitality sector. 

Developed on 147 acres, the complex comprises various malls and vacant space, which the report said can be used to build commercial or residential buildings. There are currently about 1.7 million square feet available for development.

Also Read: Bajaj Finance Q2 FY24 results: Consolidated net profit rises to Rs 3,551 cr, asset quality improves

The GIP, which was once among the biggest malls in Delhi-NCR, was jointly developed by the Appu Ghar Group and the Unitech Group. The Unitech holds 42 per cent in the mall, while the rest is owned by other investors. 

A source told the business daily that the complex was up for sale since it had a debt of about Rs 1,000 crore, and its current promoters were not in a comfortable financial position. According to the person, this deal would provide a huge boost to any company expanding in the retail sector.

The mall had been struggling to generate revenue due to newer malls coming up in the region like DLF Mall of India. The pandemic and lockdown restrictions exacerbated the problem for the mall that, by some estimates, faced a loss of Rs 3,000 crore during the Covid period.

Now, the report suggests that the Noida-headquartered pan masala maker is in talks to acquire Great India Place. However, DS Group's spokesperson said, "We are always evaluating potential business opportunities, but no bid has been submitted for Great India Place Mall."

The potential acquisition by the DS Group is part of its strategy to diversify into premium retail and hospitality. In July this year, the group acquired Viceroy Bangalore Hotels Pvt Ltd. Viceroy Hotels-owned, and the Marriott-managed Renaissance Bengaluru is situated on 1.8 acres of prime land and has 275 rooms.
 
Last month, a top executive of the group said that the company was planning to add three new properties with a capex of Rs 500 crore in the next 3 years. "Currently, we have six hotels with around 930 keys operating under global hospitality brands including Radisson, IHG, and Marriott. We are planning to add another three hotels to our portfolio with a capex of Rs 500 crore in the next three years," DS Group vice chairman Rajiv Kumar told news agency PTI.