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An ISO 9001:2008 Certified Company
AEROTROPOLISA CASE STUDY OF BENGALURU
January 2015
A Report By Strategic Advisory Group
CONTACT US
USAChicago: 300 N. LaSalle Street, Suite 1850, Chicago, IL 60654|T: +1 312 920 0290
INDIABengaluru: First Floor, West Wing, DuParc Trinity, #17, M G Road, Bengaluru - 560 001|T: +91 80 4062 0100Mumbai: Acme Plaza, Unit No.501, 5th floor, Andheri Kurla Road, Andheri (East), Mumbai - 400 059|T: +91 022 4215 3060Chennai: Penthouse Suite-1, Apeejay Business Centre, Apeejay House, 3rd Floor, 39/12, Haddows Road, Nungambakkam, Chennai - 600 006|T: +91 44 3915 9351/ 6665 9351Hyderabad: 2nd Floor, N.N.R Arcade, Plot 13, Road No.10, Banjara Hills, Hyderabad - 500 034|T: +91 40 3378 2100 Pune: Level 6, Pentagon P-2, Magarpatta City, Hadapsar, Pune - 411 013|T: +91 20 4014 7855
CHINAShanghai: Unit 1207, No. 546, Changing Road, Changing District, Shanghai - 200 042|T: +86 21 3255 6366Beijing: No. 91 Jian Guo Road,16F Gemdale Plaza Tower A, Chaoyang District, Beijing 100022, PRC|T: (8610) 5920 8108
SRI LANKAColombo: Colombo World Trade Centre - Fort, Level 26, East Tower, Echelon Square, Colombo, 00100
E: info@vestianglobal.comwww.vestianglobal.com
Executive Summary
•
•
•
•
•
•
•
AEROTROPOLIS2 3
• For centuries, civilizations have flourished around transportation hubs
like rivers, sea ports, railroads and highways. In the 21st century,
airports are becoming the main drivers of city growth.
• ‘Airport City’ and ‘Aerotropolis’ are the two models for an airport centric
development. An airport city has the terminal building with its retail and
business facilities representing the urban square and its office,
hospitality, convention facilities and other uses within the airport fence
analogous to the CBD of a city. An aerotropolis is a form of urban
development with an airport city at the centre and aviation-linked
businesses agglomerating around it.
• In India, post the economic liberalization in 1991, in keeping with the
global benchmarks, private sector partners got involved in airport
infrastructure development. They adopted either the airport city concept
or the aerotropolis concept while developing new airports.
• So far, aerotropolis concept has been incorporated in greenfield airports
of Bengaluru, Hyderabad and Kochi and airport city concept has been
incorporated in the expansion/upgradation of Delhi and Mumbai
airports.
• Factors influencing the development of an aerotropolis are location,
regional connectivity, infrastructure, regional economy, operational
capacity, governance and real estate demand.
• Post a detailed analysis of the Kempegowda International Airport (KIA)
and the area under the jurisdiction of Bengaluru Airport Area Planning
Authority (BIAAPA), on the above mentioned parameters and
benchmarking it against aerotropolis regions around the world, the
following observations were made:
Bengaluru has the potential to develop into an aerotropolis
due to its strong economic growth, location advantage,
favourable demographics, airport’s growing operational
capacity, improving infrastructure and availability of large
land area for future growth.
Kempegowda International Airport (KIA) is advantageously located
within the region with shortest distance to all other airports in
South India.
The announcement of the Chennai - Bengaluru, Bengaluru -
Mumbai Industrial corridor is likely to improve its connectivity to
major ports and will increase its catchment area due to the growth
of new industrial area along this belt.
Intra-city connectivity is limited only to road. Travel time to the
airport from key economic hubs is still 60-90 minutes. However,
planned projects like Peripheral Ring Road and Metro Rail
connectivity are likely to reduce travel time over the next 5 years.
Like other established Aerotropoli, Bengaluru has a strong
economic base. Currently the Government of Karnataka is
promoting various business parks in the vicinity of the KIA and
close to 500,000 new jobs are anticipated to be created by 2025.
Currently, KIA is far behind in its operational capacity compared to
benchmark aerotropolis regions. However, at the current rate of
growth, the airport will reach annual passenger capacity of 50
million per annum, the average passenger capacity of benchmark
airports, by 2030. The airport also has sufficient land to handle
this increase in capacity.
In terms of governance, Bengaluru has adopted the hybrid form
that combines the best of market driven, hierarchical and network
driven approach.
Although real estate development in the study region is in a
nascent stage, but with activity in government promoted
economic hubs gaining traction, this region is likely to emerge as
the future real estate hotspot of Bengaluru.
• Based on the above observations, we conclude that BIAAPA region
may be India’s first aerotropolis in the making.
CONTENTS PAGE
Executive Summary 3Introduction 4 Factors Influencing Aerotropolis Development 10Real Estate Developments at KIA, Bengaluru 21Conclusion 27
Glossary 28Authors 29About Vestian 30
JIT Manufacturing Flex Tech
Industrial Park
Industrial Park
Medical &Wellness Clusters
Research/Technology
Park
Distribution Centre
BondedWarehouse District
AirportCity
Hote
l
Hote
lBu
sines
s Offi
ce
Busin
ess O
ffice
AirCargo
Retail/wholesaleMerchandise
Marts
Hotel &Entertainment District
Business Park
ExibitionComplex
Residential
Airport Expressway (Aerolane)
Airport Expressway (Aerolane)
Airport Expressway (Aerolane)
Airpo
rt Ex
pres
sway
Train
(Aer
otra
in)Air
port
Expr
essw
ay Tr
ain (A
erot
rain)
Logistics Park& Free Trade Zone
Airport Expressway (Aerolane)Flow-Thru & E-Fullfillment
Facilities
Adap
tatio
n of
con
cept
map
cre
ated
by
John
D. K
asar
da
Figure 2: Schematic Diagram Of The Airport City And The Aerotropolis Region
Transportation hubs – Seaports, railroads & highways have been focal points around
which cities developed. In the 21st century Airports are taking on this role.
• For centuries, civilizations flourished around transportation hubs with
cities developing around seaports, railroads and highways. In the 19th
century, introduction of railways, led to transformation in city scape
with core trading and business activities centered in and around
railway stations. By the 20th century, highways came into prominence,
connecting cities and shifting commercial activities along the region;
thus leading to sub-urbanisation.
• In the speed-driven and globally connected economy of the 21st
century, airports are fast becoming the main drivers of city’s growth.
The role of an airport today is not just limited to a
transportation hub that facilitates movement of people and cargo, but
has evolved into that of an anchor that is crucial to the development of
a city. ‘Aerotropolis’, a term coined by Dr. John D Kasarda, is used to
describe such developments. Aerotropoli are likely to become import-
ant features in the globalized world providing companies with fast
access to suppliers, customers and enterprise partners1.
DEFENCE AIRPORTS
1909 Onwards(in USA & Europe)
1935 Onwards(in N. America & Europe)
2003 Onwards(in India2)
Post 2000 (around the world)
Located in defencebases and
catering to militaryand defence
affairs
CIVILIAN AIRPORTS
Located in suburbanareas involved in
passenger & cargomovement
PRIVATE AIRPORTS
Developed under publicprivate partnership
as greenfield3
or brownfield4
airports
AIRPORT CITY & AEROTROPOLIS
Located in peripheral region of a city &
operating as business enterprise incorporating
various non - aeronautical services
Figure 1: Evolution Of Airports
• Historically airports were funded and developed by governments of
nations across Europe and North America, to use aircrafts for military
combat purposes, especially during the period between World War I
(WWI) & World War II (WWII). Both aircraft technology & production
witnessed great advancements during this period.
• After WWII, commercial aviation became popular, using ex-military
aircraft and cargo airbuses. Defense airstrips then gave way to
airports and private funding started flowing in, to develop terminal
buildings and other passenger/cargo facilities within airports.
• Today airports are much more than just a medium/machinery to
facilitate commutation domestically or across international borders.
With aviation-enabled firms agglomerating around airports, creating
‘economies of speed’, airports are shaping up as business hubs,
integrating various non-aeronautical services with aeronautical
business, leading to the development of new business models such
as ‘airport city’ and ‘aerotropolis’.
AEROTROPOLIS6 7
An aerotropolis is an urban development with an airport at the center with aviation-linked
businesses agglomerating around it.• The airport city is a model where the terminal building with its retail
use is equated to that of an urban square and the office, hospitality,
convention facilities, etc., are spread around the terminal building as
part of the airport’s public - access property; synonymous to the Ce
ntral Business District (CBD) concept thereby creating a city-like
environment within the airport property.
• The development of an airport city may lead to the agglomeration of
various businesses like:
Valuable or perishable cargo that is hugely dependent on short
transit time and protection from pilferage, which will otherwise
obliterate the value of the product.
Aviation related research & technology development centres
requiring location proximity to airports.
Logistics companies and warehouses to facilitate transportation
and distribution of air cargo.
Various service-related businesses that reinforce the system
like retail, hotels & entertainments centres, commercial offices
as well a residential developments.
This urban development centered, around an airport city, with
an agglomeration of airport dependent businesses and
associated mixed use residential developments is defined as an
aerotropolis.
• Most of the greenfield airport projects across the world are adopting
the ‘aerotropolis’ model while existing brownfield developments are
innovating and refurbishing their existing infrastructure to incorporate
the airport city model to increase the non-aeronautical revenues and
derive lucrative returns of an otherwise capital intensive airport
venture.
• Key examples of aerotropoli around the world include:
Memphis International Airport - Memphis, Tennessee and Dallas-Fort
Worth International Airport (DFW), Texas, USA are prime examples of
market driven aerotropoli that have developed due to the need for
fastest possible networking to transport cargo. Incheon, South Korea
and Dubai World Central, United Arab Emirates (UAE) are greenfield
airports that are hierarchy-driven with top down governance approach
with the government being the key decision-maker. Fraport in
Frankfurt, Germany has developed due to its regional economy as a
financial capital while Schipol, Amsterdam is a key example of an
airport city operating on private sector principles.
1 John D. Kasarda, 2010, ‘Global Airport Cities’, Insight Media, www.GlobalAirportCities.com2Private sector participation in airport development was allowed post the amendment of Airport Authority of India Act, 1994 in 2003. However, private sector participation has been prevalent in airport development
in other countries around the world even prior to 2003.3 Greenfield Airports are airports built from scratch on an undeveloped site.4 Brownfield Airports refer to existing airports that are upgraded. These projects impose restrictions due to existing developments.
AEROTROPOLIS8 9
132Total number of
operationalairports under AAI
3 Greenfield airports
developed with privatepartners till 2014
2 Brownfield airports
expanded/upgraded withprivate partners
15New greenfield airports
approved
200Low cost airports
announced in Tier ll, lllcities by over next 20 years
25International
airports
Overview Of Airport Development In India • Since economic liberalization in 1991, Indian aviation industry has
transformed from being a state owned industry to one that is
dominated by privately owned full services airlines and low-cost
carriers.The adoption of open skies policy post 1991 has added to the
overall growth in air-traffic. Between 2006 and 2013, total air
passenger traffic grew by about 65% from 96 million to 159 million
passengers in the country.
• Mumbai, Delhi, Bengaluru, Hyderabad, Chennai, Kolkata and Cochin
airports account for 70% of the total passenger traffic in India. Delhi
and Mumbai collectively amount to 40% of the total passenger traffic
and are the two busiest airports in India.
• With increasing air traffic the infrastructure of the existing airports
encountered capacity constraint and necessitated modernisation and
upgradation. To bring a quick turnaround, the GoI and AAI have taken
the following steps:
The AAI Act has been amended to allow airport privatization.
Adopted the Public Private Partnership (PPP) model for
development of greenfield airports and modernization of
existing airports.
Allowed 100% FDI in greenfield airports under the automatic
route and 100% FDI for expansion/upgradation of existing
airports subject to FIPB approval for funding beyond 74%.
• In line with global advances in airport development, airports across
India are being modernized and upgraded incorporating the
characteristics of the airport city and aerotropolis models. A
comparative matrix of the operational capacity and future
development possibilities is prepared to understand the airports’
potential to develop into an aerotropolis.
• Delhi, Mumbai and Chennai lose out on the opportunity to develop
into aerotropoli due to the location of their airport in suburban areas
with no scope for future expansion. However, airport city model may
be incorporated in these airports. Hyderabad and Cochin have
sufficient land due to their peripheral location, but are lower in
capacity compared to Bengaluru. Bengaluru has sufficient operational
capacity as well as location advantage both in terms of regional
connectivity and land availability.
• Therefore, we have taken the case of KIA, Bengaluru for the study.
Economic liberalization has given a prominent role to private airlines that has resulted in an
increase in air traffic. Today, modernization of airports is done largely under PPP model. ParticularsIndira Gandhi
International Airport, Delhi
Delhi International Airport Pvt. Ltd.
Suburban
National Capital
6,300
36.9
10
21.80
60
100
2.2
No
High
Chattrapati Shivaji International Airport,
Mumabi
Mumbai International Airport Ltd.
Suburban
Financial Capital
2,900
32.2
7
19.10
30
50
0.15
No
Very High
Chennai International Airport,
Chennai
AAI
Suburban
Port City
1,283
12.89
6
7.60
23
25
0.29
No
Moderate
Owner/Operator
Location
USP
Area (in acres)
Total Passengers (in millions) 2013-14
Growth Rate (in %)
Market Share (in %)1
Handling Capacity (pax p. a. in millions)
Scope For Expansion (pax p. a. in millions)
Availability Of Land For Aerotropolis Development(outside airport fence)
Real Estate Cost
Cargo Handling Capacity(in million tons)
Kempegowda International Airport,
Bengaluru
BIAL/GVK
Peripheral
IT Capital
4,000
12.9
8
8.00
20
50
0.36
Yes
Moderate
Rajiv Gandhi International Airport,
Hyderabad
GMR HyderabadInter. Airport Ltd.
Peripheral
Emerging Metropolis
5,500
8.7
7
5.00
12
40
0.15
Yes
Low
Cochin International Airport,
Cochin
Cochin International Airport Ltd.
Peripheral
Port City
2,460
5.4
10
3.00
9
20
0.15
Yes
Low
Table 1: Snapshot Of Key Modern Airports In India
Source: Vestian Research 2014
1 Percentage of passenger traffic in respective airport over total air passenger traffic
Indira Gandhi International Airport, Delhi
Kempegowda International Airport (KIA), Bengaluru
Kempegowda International Airport- An Aerotropolis In Making
AEROTROPOLIS12 13
Figure 4: Factors Influencing Aerotropolis Development
Factors Influencing Aerotropolis Development
Location, Connectivity& Infrastructure
• Regional location• Regional connectivity• Location of the airport in the city• Distance from CBD• Connectivity to CBD & other economic hubs within the city• Infrastructure projects that will improve connectivity to the airport• Airport infrastructure
Economic Drivers
• Target Industries in the region• Number of jobs created in the region• Number of direct employees at the airport• Incentives for setting up business in the region
Operational Capacity
• Passenger traffic• Cargo landed weight• Number of passenger airlines• Total aircraft operations• Capacity (arrivals/departures per hour)• Airlines that have made airport their hub
Governance
• Ownership structure• Key decision-makers• Key stakeholders
Real Estate
• Commercial• Residential• Retail• Hospitality• Healthcare• Education
Location, connectivity & infrastructure, regional economy, operational capacity, governance
and real estate demand are the factors crucial for the development of an aerotropolis.
Location, Connectivity & Infrastructure• Airport cities world over have developed on urban fringes as the
development requires large tracts of land both for immediate use and
future expansion.
• Location on urban fringes necessitates high-speed connectivity to the
city for the movement of both passengers and cargo. This has led to
the development of infrastructure such as airport expressway links,
high speed rail links and dedicated freight corridors.
Regional Economy• Regional economy and airports share a close link. High tech industries
(firms specializing in Information and Communication Technologies)
generally locate their facilities within the airport fence as high-tech
professionals are likely to travel by air at least 60% more frequently
than other professionals. Proximity to the airport also gives these
businesses high visibility for their brands.
• Airports and its immediate environs attract non service components of
the economy. New economy products such as micro-electronics,
pharmaceuticals, aerospace components, medical devices and other
high value-to-weight, time sensitive products account for 80% of
international air cargo.
• Therefore, cities with high-tech and new economy products as their
primary economic drivers will witness the agglomeration of these
industries in the aerotropolis regions.
Operational Capacity• Growing dependence on the airport for passenger and cargo movement
has necessitated the need to increase operational capacities of
airports. Higher passenger and cargo traffic in turn results in better
airport infrastructure, increased demand for hotels, retail and other
real estate development.
Governance• An aerotropolis region is spread across multiple jurisdictions, and a
successful aerotropolis region requires coordinated investments in
land use and infrastructure development in order to benefit the
businesses located in the region.
• Four types of governance structures defined and are -
Market driven, where individual firms locate close to the airports
to maximize economic benefits, thereby creating RE demand.
This involves multiple agencies for governing various
jurisdiction. Key example is Memphis International Airport
Tennesee, USA.
Hierarchy - driven, where governance is driven through top -
down directives. Key examples are Incheon International
Airport,Seoul; Dubai World Central, United Arab Emirates (UAE).
Network - driven, where decisions are arrived at based on
consultation with stakeholders. Key example is Schiphol,
Amsterdam.
Hybrid - This incorporates the most suitable aspects of the
above three structures.
Real Estate• With more airports going the privatization route, revenue from
non-aeronautical services is becoming important in order to keep the
airports profitable.
• Recent studies sampling airports all over the world suggest a
correlation between an airport development and proliferation of
supportive real estate in the adjoining region.
Figure 5: Airport City & Aerotropolis Locations Worldwide
Study Area: BIAAPA Region• The Kempegowda International Airport (KIA) was conceptualized in
the year 1994 and Karnataka State Industrial Infrastructure
Development Corporation (KSIIDC) was appointed as the nodal
agency. The greenfield airport is developed in Devanahalli, 35 km
from Bengaluru city.
• The greenfield airport is developed on a Public Private Partnership
(PPP) Model and opened for public in May 2008.
• KIA property is spread across approximately 3,880 acres of land.
About 2,000 acres are developed as part of Phase I. Approximately
450 acres are available for real estate development.
• The area under the jurisdiction of the Bengaluru International Airport
Area Planning Authority (BIAAPA) is considered as the study area. It
covers an area of 985 sqkm.
• In this section, we undertake an in-depth study of KIA and BIAAPA
region and then compare it with established aerotropolis regions
around the world to understand if the region has the potential to
develop as an aerotropolis.
Benchmark aerotropolis regions include
• Memphis International Airport (MEM) - Memphis, Tennessee, USA
• Dallas-Fort Worth International Airport (DFW) - Texas, USA
• Hong Kong International Airport (HKIA) - Hong Kong, China
• Incheon International Airport (ICN) - Seoul, South Korea
• Fraport (FRA) - Frankfurt, Germany
• Schiphol Amsterdam Airport (AMS) - Amsterdam, The Netherlands
Dallas Fortworth International Airport (DFW)
Memphis International Airport (MEM)
Frankfurt Am Main Airport (FRA)
Amsterdam Schiphol Airport (AMS)
Hong Kong International Airport (HKIA)
Kempegowda International Airport (KIA)
Incheon International Airport (ICN)
Operational Aerotropolis
Developing Aerotropolis
Operational Airport City
Developing Airport City
Benchmark Aerotropolis
Case Study KIA
DODDABALLAPUR
HOSKOTE
KANAKAPURA
RAMANAGARAM
MAGADI
BENGALURUCITY
STUDY AREA
ANEKAL
NELAMANGALAKIA
Figure 3: Map Of Study Area, Bengaluru• Regional economic conditions play a major role in creating real estate
demand within the airport cities.
• Round the clock activities in an airport are gradually transforming these
transportation hubs into viable retail, hospitality, business & industrial
destinations.
N
AEROTROPOLIS14 15
• Further with the announcement of Mumbai-Bengaluru economic corridor
and Chennai-Bengaluru industrial corridor, connectivity to ports is
likely to improve. Newer industrial hubs will develop along these
corridors for which KIA will be the nearest international airport.
• The new state of Andhra Pradesh, is likely to promote Anantpur and
Chittoor districts as specialized hubs for hardware, electronics and
agro/food processing industries respectively. The proximity of these
districts to KIA is also likely to improve demand for cargo capacity.
Table 2: Comparative Analysis - Location Aspect
• Spread over 3,880 acres of land, this greenfield international airport is
located at a distance of 35 km from the city with sufficient
undeveloped land around to develop airport related activities.
• The city is advantageously located in the geographical center of South
India and has the shortest distance to most airports in this region. Blue
Dart Aviation and Air Asia have made Bengaluru their hub and
Maintenance, Repair and Operations (MRO) base.
Regional Location & Connectivity
Intra-City ConnectivityLocation, Connectivity & Infrastructure: Kempegowda International Airport is advantageously
located within the region, however, intra-city connectivity is a concern.
ParticularsMemphis
International Airport (MEM)
Dallas Fortworth International
Airport (DFW)
Hong Kong International Airport (HKIA)
LocationMemphis,
USA, N. America
15
_
5,100
Yes
Dallas-Fortworth,USA, N. America
38 km to Dallas, 45 km to Fortworth
Commuter Rail Service to Dallas
& Fortworth Dallas Area.
Rapid Transit Bus service
18,046
Yes
Hong Kong, China, Asia
35
Multi-landExressway
Airport Express Train
3,138
Yes
Distance To Downtown (in km)
Connectivity From Downtown
Area Of The AirportProperty (in acres)
Scope FoExpansion
Frankfurt Am Main (FRA)*
Incheon International Airport (ICN)
SchipholAmsterdam
Airport (AMS)
Kempegowda International Airport (KIA)
Frankfurt, Germany, Europe
12
S-Bahn to city centre.
Regional Express train
to other regions around
4,000
Yes
Seoul, South Korea, Asia
70
High Speed Rail Link
15,000
Yes
Amsterdam, The Netherlands, Europe
14
Train to Amsterdam & other cities in The
Netherlands. Thalys-International
high speed train connecting to cities in Europe
7,000
Yes
Bengaluru, India, Asia
35.4
Bus Service
3,880
Upto 50 million passengers
Compared to other aerotropoli, KIA scores in terms of strategic location and regional connectivity. Intra-city connectivity is not at par with
benchmarked airports that have used various alternatives like high speed rail links, multi-modal transport systems and dedicated freight
corridors to reduce travel time to the airport.
• Connectivity to the city center is currently only via road. The
completion of the elevated expressway between the city center and
KIA along Bellary Road, signal-free Outer Ring Road has reduced
travel time. Despite this, connectivity from other key economic hubs
like Electronics City and Whitefield takes between 60 to 90 minutes.
• In order to account for future growth in traffic in this region, other
modes of connectivity must be explored.The proposed high-speed
rail corridor planned along Bellary Road from M.G. Road to the
international airport has been shelved due to the project not being
economically viable. Currently, there are talks of extending the Metro
Rail Corridor to the airport from Nagawara via Thanisandra Road in
Phase III. However, this is a long term option, with no other
alternatives available at present.
Figure 6: Distance And Air-travel Time To Key Airports In South India From KIA
THIRUVANANTHAPURAM
CHENNAI
MADURAI
TRICHY
KOZHIKODE
KOCHI
MARMAGOA
VISAKHAPATNAM
BAY OF BENGAL
INDIAN OCEAN
ARABIAN SEA
BENGALURU
MUMBAI
PUNE
869 km
1h 20 m
531
km55
m
608 km
393 k
m
396
km
369 km
462 km
338 km
45m
754
km11
h 45
m
533
km
1,031
km
1h 30
m
1,011 km
1h 30 m
HYDERABAD
Development Model: PPPLocation: SuburbanUSP: Financial Capital of India
Development Model: PPPLocation: PeripheralUSP: Emerging Metropolis
Development Model: PPPLocation: PeripheralUSP: Port City
Development Model: PPPLocation: PeripheralUSP: IT capital of India
Ownership: AAI AirportLocation: SuburbanUSP: Port City
COIMBATORE
Figure 7: Industrial Cities Along Chennai – Bengaluru – Mumbai Infrastructure Corridor
CHENNAI
BAY OF BENGALARABIAN SEA
MUMBAI
PUNE
SATARA
KOLHAPUR
BELGAUM
DHARWAD
DAVANAGARE
CHITRADURGA
TUMKUR
BENGALURU SRIPERUMBUDUR
HOSKOTEKOLAR
PALAMNER
INDIAN OCEAN
TELANGANA
ORISA
ANDHRAPRADESH
KARNATAKA
TAMIL NADU
KERALA
MAHARASHTRA
Table 3: Infrastructure Projects Impacting Connectivity To The Airport
DetailsProject Timeline Status Impact
Metro Rail extension from Nagawara
Junction to Kempegowda International
Airport has been proposed
The Peripheral Ring Road is a PPP project to
be executed by the BDA. Phase I will connect
Tumkur Road to Hosur Road via Bellary Road,
Old Madras Road and Sarjapur Road
284 km road connecting the satellite towns
around Bengaluru namely Dabbaspet,
Doddaballapur, Devanahalli, Hoskote, Anekal,
Kanakapura, Magadi and Ramanagara
Metro Rail Phase II Proposed ProposedTo reduce travel time from
the city to KIA
Peripheral Ring Road
Phase I:
Expected to be
operational by 2018–19
Phase I: Land
notification under
progress
Will connect industrial &
economic hubs in the peripheral
areas of Bengaluru
Will connect industrial areas
& satellite towns around
Bengaluru
Under-
ConstructionSatellite Town Ring Road
NA
Source: Vestian Research 2014
Source: Vestian Research 2014
N
N
Table 5: Government Promoted Economic Hubs In Bengaluru
Particulars
Location
Devanahalli Business Park
Devanahalli -
Adjacent to KIA
414
KSIIDC
Fresh EOI invited
in August 2011 to
develop the project
on a PPP basis.
Design for the
convention center
within has
been finalized
_
250,000
Aerospace Park
South of KIA
1,000
KIADB
Wipro,
Starrag Heckert,
Amada and
TE operational
BEML, AIMIL,
Dynamatic
Technologies,
Sunshine Aerospace,
Centum Electronics
20,000
Logistic Parks
Balepura
near
Devanahalli
150
KSIIDC
Land
aqusition
is underway
_
10,000
HardwarePark
Bagalur
Village
941
KIADB
Shell
Technologies’
facility (1.5million
sqft) is under
construction.
Foundation stone
laid for the financial
city on 50 acres to
be developed by IFIC
Bangalore Bio-Tech
labs, Shell
Technology,
Moser Baer
40,000
IT/BT Park
Bagalur
Village
1,028
KIADB
Land alloted to
companies like
TCS & Cognizant
Sunlux Technology
150,000
IT Investment Region (ITIR)
Muddenahalli,
Kaniverayanapura,
Chikkaballapur
12,000
KEONICS
Land acquisition
underway for 2,200
acres of Phase I.
55 companies
including Infosys,
Wipro, TCS,
Cognizant have
signed up MOUs
1.2 million
Integrated Textile Park
Doddaballapur
Road
469
KIADB
Operational
Gokuldas Images,
Madura Garments,
Raymonds, Bombay
Rayon Fashion
15,000
Area (in acres)
Agency
Status
Companies That Have Been Alloted Land
Employment Generation By 2025
AEROTROPOLIS16 17
• Although Bengaluru is globally renowned as the IT/ ITeS capital of
India, the city is now developing into a knowledge economy with a
diverse economic base.
• Other than IT/ ITeS sector, the city is home to manufacturing,
automobile, aerospace, biotechnology and textile industries.
• The city is one of the largest employment generators in the country
with close to 100,000 service sector jobs created every year2.
• In terms of spatial development, industrial activity has adopted the
cluster development format due to agglomeration benefits of locating
close to similar companies. For the study region, Government of
Karnataka (GoK) is promoting IT/ITeS, Hardware, Aerospace and
Biotech sectors as target industries. Refer Table 5 for details on the
various industrial parks announced by GoK. Agglomeration of these
industries around the airport is anticipated to provide visibility &
allows time-sensitive products3 to reach their customer base faster.
• Close to 4,000 acres of land has been acquired & is under
development by GoK. More than 50% of this land has been allotted to
companies.
• Currently, a few companies have started operations or are under
construction namely Wipro, Starrag Heckert, Amada TE and Shell
Technologies creating close to 2,500 jobs. Activity in these clusters
is likely to gain traction in the next 3-5 years. Once fully operational
(by 2025), these industrial and technology clusters are likely to
employ close to 500,000 people4.
• Additionally, jobs will be created in commercial office spaces likely
1Vestian Research2Number of jobs has been arrived at using occupant load of 100 sqft per person for commercial buildings as per National Building Code (NBC), 20053Products manufactured by Hardware, Biotech and Aerospace industries are highly time sensitive, thereby depending on airports.
4This number excludes employment generated in the ITIR as the project has run into land acquisition issues and the actual status of the project is not known.5Based on the benchmark that 1,300 passengers create one direct job at the airport6National Strategy for Manufacturing; NASSCOM, 2007
0
20
Delhi
NCR
Thou
sand
s
Mumb
ai
Beng
aluru
Chen
nai
Pune
Kolka
ta
Hyde
raba
d
40
60
80
100
20122010 2011 2013
53
80
4956
81
95
83
37
15 13
41 42
2620
27
3
2116
2534
4236
31
84
37
6049 53
Figure 8: Employment Generation Based OnOffice Space Absorption Across Major Cities Of India2
to be developed by private developers within and outside the
airporte fence. These office spaces are likely to capture at least 10%
of the office market in Bengaluru by 2020, thereby creating close to
10,000 jobs y-o-y. The market share of this micro-market is likely to
increase in future as this is the natural direction for Bengaluru city’s
growth owing to availability of land.
• In addition to this, the airport is likely to employ close to
12,000-15,000 direct jobs by 2020 when the passenger capacity
reaches 20 million per annum5.
• Each of the direct jobs created in manufacturing and IT/ITeS sectors
is likely to create 2 and 4 indirect jobs respectively6.
Table 4: Comparative Analysis – Economic Aspect
Regional Economy: Government of Karnataka is promoting IT/ITeS, Aerospace, Biotech and
manufacturing sectors in the aerotropolis region
ParticularsMemphis
International Airport (MEM)
Dallas Fortworth International
Airport (DFW)
Hong Kong International Airport (HKIA)
Tourism & logistics
NA
166,000
Air cargo
distribution
businesses,
freeway
retail business
60,000
400,000
Cargo, logistics
and retail
65,000
124,000
Target Industries In The AerotropolisRegion
Number Of Direct Employees At The Airport
Number Of JobsIn The Aerotropolis Region (upto 20 mile radius)1
Frankfurt Am Main (FRA)*
Incheon International Airport (ICN)
SchipholAmsterdam
Airport (AMS)
Kempegowda International Airport (KIA)
Logistics hub
30,000
350,000
Banks & Financial
institutions,
Consultancy firms
78,000
116,000
Aerospace,
logistics, fashion,
perishables, life
science sectors
60,000
200,000
Aerospace,
IT/ITeS, Cargo
6,500
500,000by 2025
In comparison to other aerotropolis regions around the world, the economic base for Kempegowda International airport is sound. With
high-tech firms and new economy industries clustering around the airport, the jobs created are likely to be linked to the airport.
Regional Economy
Source: Vestian Research 2014
Source: Vestian Research 2014
In comparison to the benchmark aerotropolis regions, KIA is far behind in its operational capacity. Six years into operations, KIA has
graduated to become the third busiest airport in India in terms of operational capacity. With a robust economy, good regional connectivity
and high growth in the Indian aviation sector, KIA is likely to reach 50 million passenger capacity over the next 10-15 years. Currently, the
non-aeronautical revenue is low compared to other airports and this is likely to improve only with real estate development within the
airport fence. Adoption of hybrid concession model will also have a direct and indirect impact on passenger growth as well as airport
centric economic development in the region.
AEROTROPOLIS18 19
Operational Capacity Of The Airport: Kempegowda International Airport is likely to reach its
peak capacity of 50 million passengers annually by 2025.
Particulars
Memphis International Airport (MEM)
Dallas Fortworth International Airport (DFW)
Hong Kong International Airport (HKIA)
Incheon International Airport (ICN)
Frankfurt Am Main (FRA)*
SchipholAmsterdam
Airport (AMS)
Kempegowda International Airport (KIA)
Passenger Traffic(in millions)
Cargo Landed Weight (Million Metric Tonnes)
Number Of Passenger Airlines
Total Aircraft (Operations/year)
Capacity (arrivals-departures/hour)
Percentage Of Non-Aeronautical Revenue3
Airlines ThatHave Made The Airport A Hub
4.5
4.14
9
2,33,404
144 - 160
Delta Air,
Fedex, Seaport
Airlines
(Private Terminal)
60.47
0.59
18
6,78,059
270-279
American
Airlines, Spirit
Airlines, UPS
Airlines
59.9
4.16
95
3,72,000
66
Cathay Pacific,Dragon Air,Hong Kong
Express Airways, Hong Kong Airlines, Air
Hong Kong (Cargo)
41.48
2.46
70
2,71,224
-
Asiana Airlines,
Korean Air,
Polar Air Cargo
58.04
2.12
106
4,72,692
126
Condor
Flugdienst,
Lufthansa
52.6
1.5
85
4,25,565
106 - 110
Arkefly, Corendon Dutch Airlines, Delta Airlines, KLM, Martinair,
Transavia, Tristar Air, Vueling
12.9
0.24
27
1,18,600
35
37%
Blue Dart
Aviation,
Air Asia
India
43.4% 41%50%
Table 6: Comparaitive Analysis - Operational Capacity Aspect
Governance: Bengaluru has a hybrid form of governance with market forces co-existing with
government hierarchies and consultation process.
Particulars
Memphis International Airport (MEM)
Dallas Fortworth International Airport (DFW)
Hong Kong International Airport (HKIA)
Incheon International Airport (ICN)
Frankfurt Am Main (FRA)*
SchipholAmsterdam
Airport (AMS)
Kempegowda International Airport (KIA)
Type Of Governance
Ownership And Operator Details
Incentives To Businesses Setting Up In The Aerotropolis Region
Market driven
Owned and
operated by
Memphis Shelby
County Airport
Authority
Tax credits &
freeze on property
tax based on scale
of investment
and employment
generation
Hybrid
Jointly owned
by
Dallas and
Fort Worth
Wide range
of incentive
packages in
different
communities &
for investment in
free Trade
Zone
Hybrid
Airport Authority
of Hong Kong
(owned by Govt.,
long lease
to authority)
New Destination
Incentive
Arrangement
Hierarchy driven
Owner: Govt of
South Korea
Operator: Incheon
International
Airport
Corporation
Customs & special taxes - exempt
(100%) for 5 years. Corporate Taxes,
IT - Exempt for 10 years.
Acquisition Tax, Property Tax,
Land tax, registration cost - 100% exempt
for 3 years
Network driven
Fraport AG
(Partially Private
For-Profit with
Government
controlling
interests)
-
Network driven
Schiphol Group
(Multi-level Govt.
form an authority
to own & operate
airport regions)
-
Hybrid
Jointly owned by
AAI (13%),
GVK (43%),
KSIIDC (13%),
Siemens (26%),
Unique Zurich
Airport (5%)
All incentives
available for
companies as per
state's Industrial
policy, IT, BT
and Aeropsace
policies available
Table 7: Comparative Analysis - Governance Aspect
In comparison with the benchmark aerotropolis region, KIA is adopting the hybrid form of governance that combines the best of market
driven and hierarchical approach. However, with multiple agencies being involved disputes arise and concensus building is priority to
achieve the desired results.
Governance within Airport City• KIA is a greenfield airport developed on a PPP model with the private
sector having 74% stake.
• Business decisions for the airport city are made by Bengaluru
International Airport limited (BIAL), whereas decisions regarding
increase in user charges have to be approved by AERA.
Governance Outside Airport City• Outside the airport fence, in order to avoid multiple jurisdictions,
Bengaluru International Airport Area Planning Authority has been
constituted and is responsible for land use planning in the region.
This region is spread across an area of 985 sqkm and covers 214
villages in Devanahalli Taluk, 67 villages in Doddaballapur Taluk in
Bengaluru Rural District and 66 villages in Bengaluru North Taluk in
Bengaluru Urban District.
• Improvement of ground transportation for good connectivity to the
airport and economic development involves the role of multiple
government agencies and private consortia.
• Land acquisition for economic and infrastructure development is taken
care of by the state government. Economic development projects
such as ITIR are facing issues with land acquisition due to archaic
land acquisition laws. With the enactment of the land acquisition,
Rehabilitation and Resettlement Act 2013, there is some hope for
these projects to be released in the medium to long term.
• In the area outside the airport fence, market forces play a major role
that involves private developers, investors and aviation linked
businesses.
Source: Vestian Research 2014
Source: Vestian Research 2014
1Vestian Research, 2Based on the benchmark that 1,300 passengers create one direct job at the airport32013 ACI Economics Report, preview edition, data is not for individual airports but average values considered for airports across continents4The regulators have suggested a share of 40% of the gross revenue generated from non-aeronautical services for BIAL whereas Mumbai & Delhi airports follow 30% of non-aeronautical revenue share.
• Kempegowda International Airport currently handles close to
12.9 million passengers every year. This is likley to increase to 20
million by 2020.
• The airport has an expansion capacity of upto 50 million passengers
per annum. Considering the current rate of growth, it is expected to
reach its threshold by 2030.
• Cargo capacity of the airport is second only to Indira Gandhi
International Airport in Delhi. Cargo movement is anticipated to
escalate owing to the development of the Mumbai-Bengaluru-Chen-
nai industrial corridor and the city’s proximity to upcoming econom-
ic hubs in Andhra Pradesh.
• KIA is currently hub to Air Asia India, Blue Dart Aviation, Jet Airways
and Spice Jet.
• Currently, the airport provides direct employment to 6,500 people1.
This is likely to grow to 12,000-15,000 direct jobs by 20202.
• The non-aeronautical revenue of Kempegowda International Airport
is lower than other private airports in India and stands at 37%. This
will result in higher user charges for both airlines and passengers.
This may deter several airline majors from choosing KIA as a hub
airport.
• Private airports in India have adopted the hybrid concession model4
for development of both airport infrastructure and boost commercial
development within airport premises.
Schiphol Amsterdam Airport (AMS), The Netherlands
Real Estate Developments at KempegowdaInternational Airport, Bengaluru
AEROTROPOLIS22 23
The area outside the airport property under BIAAPA is transforming from being a
predominantly rural to an emerging market for Real Estate development.
Airport City• Real estate development within the airport property is still in a very
nascent stage and currently is restricted to terminal retail and basic
business facilities within the terminal building and a 320 room hotel.
• Approximately 450 acres are available for real estate development in
KIA. BIAL had previously developed master plan for real estate
development prior to 2007. Post the global economic downturn, and
with policy changes by the Indian government for special economic
zones, the demand patterns have changed. Kempegowda Internation-
al Airport is currently revising its master plan for real estate develop-
ment within its property.
RE Activity BIAAPA Jurisdiction• In this region(study region) RE activity has been witnessed mostly
along the following belts:
Bellary Road (NH 7)- Emerging as the key link between airport
and CBD with office spaces, hospitality, retail and high-end
residential.
Unlike benchmark aerotropolis regions where RE activities are driven by aviation-linked businesses, real estate activity in BIAAPA region
has started with investor interest in plotted developments and residential apartment projects. Aviation-linked economic activities have
been initiated, but these are mostly government promoted. Commercial and residential RE activity will gain momentum only after critical
mass is achieved in these economic hubs. But by 2030, it is likely that Real estate activity will be at par with activities of an established
aerotropoli.
Figure 9: Concept Map For Bengaluru Aerotropolis Region
KR Puram
ITPB
Whitefield Road
NH 4
NH 7
Devanahalli
Doddaballapur
NICE
Roa
d
Hebbal
Yelahanka
Manyata Tech Park
BagmaneWorld Tech. Centre
N
SH 9SH 74
NH 207
NH 207
Nelamangala
Dabaspet
NH 7To Hosur
SH 17 NH 209SH 87
SH 35To Attibele
NH 4To Chennai
Sarjapur Road
IVC Road
Silk Board
Yeshwantpur
ElectronicsCity
SH 85
KIA
NH 207
CBD
Nagawara
SH 35
NH 7
SH 87Bannerghatta
NH 209To Coimbatore
SH 17To Mysore
SH 85To Magadi
NH 4To Mumbai
SH 09To Chikkaballapur
NH 7To Hyderabad
Proposed Peripheral
Ring Road
Proposed PeripheralRing Road
Proposed STRRProposed STRR
Proposed STRR
Proposed STRR
Oute
r Rin
g Ro
ad
Oute
r Rin
g Ro
ad
Old Madras Road
Tumkur Road
Dodd
abal
lapu
r Roa
d
Tumkur Road
Bella
ry R
oad
Than
isan
dra
Road
NH 4
IT/Technology Cluster
Commercial Corridor
Residential & Social Infrastructure
Logistics & Warehousing Corridor
Hardware Park
Aerospace Park
Industrial Areas
Source: Vestian Research 2014
Phase I: 2010 - 2015
Phase II: 2015 - 2020
Phase III: Beyond 2020
Major Junctions
Major Roads
Outer Ring Road
Proposed PeripheralRing Road
Doddaballapur Road- Mid-segment and premium residential
activity.
IVC Road- Luxury villas and plotted developments.
Nandi Hills Road - Weekend homes and hospitality projects.
NH 207- Cargo corridor (logistics and warehousing) connecting
all the industrial hubs across the city. This corridor is also likely
to witness organized wholesale malls.
All leading real estate players have acquired land banks in this
region as it is the future growth corridor of Bengaluru.
Key concerns to RE development include poor social
infrastruture and low water table.
Image Source: http://www.bangaloreaviation.com/
AEROTROPOLIS24 25
ParticularsMemphis International
Airport (MEM)Dallas Fortworth
International Airport (DFW)Hong Kong
International Airport (HKIA)Incheon International
Airport (ICN)Frankfurt Am Main
(FRA)*Schiphol Amsterdam
Airport (AMS)
Proposed Development: IBC I Phase II: 336,000 sqm
IBC II: 1,501,000 sqmSouth Water Basin: Water park
62,895 sqm of retail space
Museum of Korean Cultures
Hyatt Regency - 534 rooms
Best Western Hotel - 301 rooms
Third Hotel planned
Free Trade Zone:
Air Cargo Terminal - 234,644 sqm
Airport Logispark - 467,786 sqm
Sky 72 Golf Club, Golf Practice Range
Global Medical Center (14755 sqm)
under construction
Offices: Samsung, Kumho Industries,
Daewoo Engg & Constructions,
Yeolseong Officetel
New Songdo Business District:
7 miles from Incheon Airport
Cargo Companies: Incheon International
Logistics Centre, AMB, KWE Korea, Schenker,
Samsung Logitech, Pantos Logistics,
Haewoo, Hanaro, IACC, BML, Hyundai
LogiM, Ibex Logitech, World Dream Fish
Over 256,000 sqm of office space in various developments
20,000 sqm retail space operational. 10,000 sqm under construction
36 conference rooms with capacities
ranging between 2 and 180 people
Inventory: 2127 rooms
Under Construction: 582 rooms
67 acres of Cargo City (south and north)
with over 100,000 sqm of warehouse
space by 2020
Monchhof Site - 110 hectares development
with logistics, offices and retail outlets
Gateway Gardens- business park(35
hectares), 700,000 sqm developable area
Nearly 500 companies like KPMG
operate out of Frankfurt airport city
Several leading banking & financial
institutions and consulting
firms are located around the airport
in the city center
200,000 sqm
-
World Trade Center with
conference facilities
Hilton, Sheraton, Sofitel
Cargo World
ACT Business park in 221 ha,
141 ha in A4 Zone West,
45 ha in Schiphol Logistics Park,
30 ha in Schiphol SE
KLM, Schiphol Group, Transavia, IBM, AT&T
Microsoft, Cisco Systems, BMC Software,
HP, Juniper Networks, Thomson CFS,
Unilever, E&Y, RR Donnelly
Do
1,000 firms have located in
aerotropolis region like
ABN Amro, Flora Holland, ING,
Alasmeer Flower Auction
_
70,000 sqm (Planned)
Currently business center facilities are available in the terminal area;
Conference facilities are yet to be developed
320 rooms Hotel
11 acres currently used for cargo
462.81 acres available for real estate
development. Master Plan is
under development
Menzies Aviation Bobba
Aerospace Park, Hardware Park, IT/BT
Park are coming up. WIPRO & Starrag
Heckert already operational.
Close to 4,000 acres are
being developed.
Bear Creek Office Park
Passport park: 600 acres of mixed use development,
400,000 sqft development for retail, office and industrial spaces
_
Southgate Plaza: 30 acres of land;
69,000 sqft of restaurants,
office and 90-120 room hotel
21 acres of Free Trade Zone
International Commerce Park:
FTZ, 295 acres out of
376 acres are leased.
Main clients include Aviall Inc,
Dallas Cowboys Merchandising, DHL, DB
Schenker, Pratt & Whitney, Trans Trade,
Simmons and Stock Building Supply, etc.
AMR Corp, AT&T, Exxon Mobil,
Fluor Corporation, Kimberly Clark
_
50 shops
Not Applicable
None
Cargo Central - 1.5 million sqft
Not Applicable
FedEx, UPS
100 million sqft of logistics space
Patterson Warehouses, Medtronics Inc.,
3 PL Alexander International Logistics,
Blue Streak Logistics, Centrix,
Katt Worldwide, Vantage Logistics
HP, Nike, Williams - Sonoma
_
_
Asia World Expo: 70,000 sqm with
Entertainment Arena: 14,000 capacity
Hong Kong Skycity Marriott Hotel
4-D Extreme Screen Theatre
Aviation Discovery Centre
Asia Hollywood
i-sports
-
Carrier Liaison Group, Asia Air freight
terminal, DHL Aviation, HK Association
of Freight Forwarding and Logistics
(HAFFA), Chu Kong Air-Sea Union
Transportation Co. Ltd. (CKSA),
Hong Kong air cargo terminals
-
Kempegowda International Airport (KIA)
Office Space
Retail
Hotels
Cargo Hub
Other Developments
Companies Within The Airport City
Other Companies In The Vicinity
Of The Airport Within The
Aerotropolis Region
Conference Facilities/exhibition
Table 8: Comparative Analysis – Real Estate Development
Real estate development
Outside Airport City
Within Airport City Within Airport City
Outside Airport City
Source: Vestian Research 2014
ConclusionSWOT analysis for aerotropolis around Kempegowda International Airport
STRENGTHS• Greenfield airport with hundreds of acres available for expansion and
development.
• The city has a diverse economic base.
• Growing air-passenger traffic.
• Private sector participation in the development of the airport has
provided funding for developing state of the art airport infrastructure.
• Government is promoting economic activities in the study area.
• Bengaluru city has the highest absorption of commercial office space
on account of consistent demand from corporates to set up
operations in the city.
• Land & leasing costs are also low compared to the other metropolitan
cities of India, thereby increasing its attractiveness.
• Planned development of the study area under a separate planning
authority with plenty of land available to develop business parks,
industrial & cargo clusters.
• Reduced travel time to the airport due to the commissioning of the
Bellary Road Elevated Expressway.
WEAKNESSES• Slow pace of real estate development within the airport city.
• Non-aeronautical revenue is currently low as compared to other
aerotropoli.
Aerotropolis Development
Possibility
An aerotropolis can develop around Kempegowda International Airport, Bengaluru. The region and KIA score
in terms of location, regional economy, airport infrastructure, availability of land for future growth, operational
capacity and governance.
Scale Of Development
Compared to aerotropolis regions around the world, Bengaluru aerotropolis may be smaller in
extent and regional impact owing to the presence of other greenfield airports like GMR Rajiv
Gandhi International Airport, Hyderabad & Kochi International Airport, Kochi in the vicinity.
The size of the economy is also smaller as compared to benchmarked aerotropoli.
Timeline ForDevelopment
The development may take longer than in benchmarked aerotropolis regions due to the slow pace of
infrastructure development. Relevant parameters such as funding for capital intensive projects, land
acquisition issues and shortage of water may pose a challenge.
Thrust Areas Key aspects that call for immediate action include - improving connectivity and reducing
travel time between the airport and the city, as well as to the key economic hubs. This region
also requires contionuous support of the GoK.
• High landing charges.
• Land acquisition issues associated with ITIR region.
• Low ground water levels which can dampen prospects in the long run.
• Rail link is still in talks - no other means of transportation to reduce
travel time.
• Land acquisition issues in the proposed government initiatives around
the airport.
OPPORTUNITIES• Shortest connecting distance to all airports in south India - therefore
opportunity to develop into a MRO hub.
• Region falls on the proposed Mumbai - Bengaluru - Chennai
infrastructure corridor.
THREATS• Competition from other airports in the vicinity like Hyderabad’s GMR
International Airport and Chennai International Airport.
AEROTROPOLIS26 27
Glossary
AEROTROPOLIS28 29
AcknowledgmentThe Vestian Strategic Advisory team would like to take this opportunity to
extend our gratitude towards all those who have helped us in our
endeavour to produce this report. We would like to especially thank Dhara
Shah, Shailendra H C, Abilash Sudarshan, Krishna Chaitanya, Abhijit Aich
and Romita Banerjee for extending their valuable support & cooperation.
Our sincere thanks to Kantharaju C, Corporate Communications Team for
designing the report.
DisclaimerThis report contains information available to the public at various public
domains and has been extracted by Vestian Global Workplace Services
from such public domains. Vestian accepts no responsibility if this should
prove not to be accurate. No warranty or representation, expressed or
implied is made to the accuracy or completeness of the information
contained herein, and the same is submitted subject to errors, omissions,
change of price, rental or other conditions and withdrawal without notice.
Amrita Datta
Sr. Manager, Strategic Advisory Groupamrita@vestianglobal.com | +91 80 4062 0100
As a part of Strategic Advisory Group, Amrita is responsible for
consultancy assignments, topical research papers and property market
updates. She has over 8 years of experience in the real estate sector and
has worked on a wide spectrum of research papers and customized reports
for various clients across all key real estate segments. She is a
management honours graduate from Assam University, Silchar.
Gorakh Jhunjhunwala, MRICS
VP, Strategic Advisory Groupgorakh@vestianglobal.com | +91 80 4062 0100
Gorakh serves as Vice President and heads the Strategic Advisory Group.
He guides the team and is responsible for research output as well as client
assignments. With over 11 years of work experience in investments,
consulting and advisory domain, he has executed and delivered
assignments across asset classes. Gorakh pursued his master’s degree
from Indian Institute of Technology, Delhi and holds a bachelor’s degree in
Architecture.
Authors
IT Information Technology
ITeS Information Technology enabled Services
INR Indian Rupee
BDA Bengaluru Development Authority
FDI Foreign Direct Investment
BIAL Bengaluru International Airport Limited
ORR Outer Ring Road
GDP Gross Domestic Product
AAI Airport Authority Of India
FIPB Foreign Investment Promotion Board
FTZ Free Trade Zone
GoK Government Of Karnataka
USP Unique Selling Proposition
y-o-y Year-on-Year
SEZ Special Economic Zone
CBD Central Business District
GoI Government of India
AERA Airport Economic & Regulatory Authority
PPP Public Private Partnership
EOI Expression Of Interest
NH National Highway
SH State Highway
KIADB Karnataka Industrial Areas Development Board
KSIIDC Karnataka State Industrial & Infrastructure
Development Corporation
KIA Kempegowda International Airport
ITIR Information Technology Investment Region
IVC Inter Village Connective
CBD Central Business District
IFCI Industrial Finance Corporation Of India
MOU Memorandum Of Understanding
BIAAPA Bengaluru International Airport Area Planning Autority
Pax. Pa Passenger Per Annum
PPP Public Private Partnership
MRO Maintenance Repair Operations
Shwetha H Pai
Director, Strategic Advisory Groupshwetha@vestianglobal.com | +91 80 4062 0100
Shwetha has over 9 years of experience in real estate research and
consultancy. As an account manager for key residential focus clients at
Vestian, she is responsible for developing and implementing customized
research, corporate strategy & project conceptualization. A qualified urban
planner from the School of Planning & Architecture (SPA), New Delhi, she
has worked in both Indian and US markets.
AEROTROPOLIS30 31
Bangalore:Whitefield &Electronic City
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estate portfolio. We handle varied workplace related transactions such as
purchase, lease, disposal, lease management, lease renegotiations and
restructuring. We provide solutions that are aligned to the business
objectives of our clients.
Retail Business SolutionsVestian Retail Business Solutions is the full-service retail arm of Vestian.
We work with each client to understand their objectives and associated
risks, establish achievable goals, develop and implement effective
solutions. Vestian Retail Business Solutions provides end-to-end services,
which include Retailer Expansion Strategy, Real Estate Services, Occupier
Representation, Retail Concept Development & Consulting, and Retail
Project Management.
Project ServicesThe Vestian Project Services team is a one-stop solution for clients opting
for Project Management solutions.
We operate on 3 different models-Project Consulting, Integrated Service
Delivery & Workplace Strategy to deliver functional facilities that meet the
clients’ space requirements. We deliver consistent, reliable and viable
solutions for local and international markets. Our delivery process involves
preparation of design documents, co-ordination with architects &
consultants for design, finalization of vendor, supervision of the project
and project closure.
Facilities Management ServicesVestian’s F acilties Management Services team helps clients focus on
their core business activities. We act on behalf of the client to preserve and
prolong the life cycle of the asset, while generating income. We, effective-
ly oversee property performance and maintenance following international
best practices, using high end technology and precision processes. We
manage the administration of residential, commercial, retail and/or
industrial real estate.
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