Revenue Sharing Brings Developer and Retailers Together In Ahmedabad

AHMEDABAD, India - July 21, 2014 - PRLog -- Ahmadabad. Alpha G: Corp, known for doing a first in Indian realty by ushering in a new revenue-sharing model, is now making waves again. The trendsetter group scripted a new high by picking up three most coveted realty awards in a single year.

At the Estate Avenues' North India Real Estate Show 2014, the group walked away with the 'Top Real Estate Professional of the Year' (won by COO& Facility Head, Arvind Kumar), the ‘Best Mall Management’ (won by AlphaOne Ahmedabad) and the ‘Best Mall Management’ (won by GurgaonOne Sector 22) The Show has been a known platform for recognizing realty excellence across North India.

It was Alpha G: Corp which had at first introduced retailers to revenue sharing, opening up for them greater payout latitude. The model asks of retailers to set aside a share of monthly revenues made under existing market variables and sentiment, and in lieu of a pre-fixed rental, this share serves as the developer (rental) payout.

This has eased out a lot of retailers, especially in Ahmedabad, for whom meeting monthly rentals during the slowdown had been particularly concerning, more so because retail markets have been slightly sluggish lately.

Ever since the innovation has been ushered in, retailers in Ahmadabad have been feeling a lot more leveraged towards business growth. It has been inspiring that a mutually beneficial framework has been established and is benefitting the retail industry.

The shared revenue can go from eight percent up to thirty-five percent and a lot of that depends on the nature and type of retail business. Mall developers and owners sometimes enter into an agreement deed wherein the retailer has to guarantee a minimum payout each month, which could either be a minimum, pre-fixed price per sq. ft. or a fixed percentage of the revenues earned, the higher of the two.