Independence Day 2024: How heritage properties in Bengaluru found a new lease of life
Once doomed for slow decay, few colonial properties in Bengaluru have been transformed into thriving retail outlets today but the exercise did not come cheap
On a busy street in Bengaluru's Sivanchetti Gardens, stands a rather modest looking retail outlet by the name ‘Cinnamon’. Little can passers-by gauge at first glance about the rich world that thrives beyond its century-old doors.
An orphanage, a school, hostel and even an office set up - what stands as Cinnamon today has seen several avatars over a span of 120 years. Restored to serve as a multi-store complex around 2013, it presently houses collections from multiple clothing labels, Museum of Art & Photography, and a cafe with a modest open courtyard at the centre.
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“We moved in here over 10 years ago and then the property was in a very poor condition. The walls were falling apart and vegetation with deep roots was growing on the ceiling,” recalled Radhika Poddar, who has leased the quaint bungalow in discussion, from the RBANM's Trust (founded by Dharmarathnakara Rai Bahadur Arcot Narrainsawmy Mudaliar) in the city. Poddar roped in professional architects to mend the fractured foundation of the property while keeping much of flooring, pillars and electrical wiring design intact.
“The approach was basically to try and restore it to the way we imagined it may have been,” Poddar said.
Cinnamon is one amongst several retail outlets in Bengaluru and India, which are reclaiming pre-Independence real estate and reviving them as cafes, boutiques, screening theatres, marriage halls, and more.
Do retail outlets housed in heritage buildings command higher rentals?
Needless to say, heritage properties, often more than a century old, demand additional care and frequent mends, compared to their contemporary counterparts. Hard Rock Cafe, housed in the Bangalore Tract and Book Society building of the Bible Society, has strict monthly, quarterly and half-yearly checklists.
“Every three months, we do a stability check of the building, including soil tests 5-8 metres down every 10 feet, removing vegetation growing on the building, cleaning the main facade wall because colour change happens very quick,” said Manikandan, Director - Operations (South), JSM Corporation Pvt Ltd.
In preparation for the monsoon season every year, the company starts flooring, roofing and drainage system checks 2-3 months in advance. “It is very difficult to maintain this kind of roofing,” Manikandan added.
At a height of over 30 feet, the structure has a sloping tiled roof, typical of most colonial buildings in Bengaluru.
The upkeep of this 8,900- square feet colonial structure, established in 1912 as a recreational club, involves a quarterly expenditure of ₹3-4 lakh, per Hard Rock officials. The leasing mandate is to maintain originality and avoid introducing new changes to the structure, with the responsibility of repairs largely on the lessee.
In contrast, most contemporary/modern commercial buildings include common area maintenance charges as part of lease agreements, with the repair and maintenance tasks outsourced to a third party.
“Typically rents would be slightly higher for heritage buildings in the right locations, given the esteem and other factors associated with such properties,” Rohan Sharma, who is a senior director - research at property consultancy JLL, said.
It further depends on the state of the property. If a heritage building is well maintained, it becomes a flagship location and may command higher rents. On the other hand, if the building is poorly maintained, rents may be lower but the retailer must invest in its upkeep and improvement.
However, retailers say that the higher rents and maintenance expenditure are justified in light of the value addition the properties bring to the vision of a brand's offering. “The high ceilings attached history and overall vibe adds to the experience of customers,” a company executive said.
“We have trained host and hostesses to give a walk-through of the property and explain the history and legacy of the building along with the memo tour to our customers,” said Prem Kumar, VP - Operations, JSM Corporation Pvt Ltd.
What are the rules to convert a heritage property into a commercial one?
With land being a state subject in India, laws governing property transactions in the country differ from one state geography to another. In Karnataka, the Town and Country Planning Act, 1961, lays out such rules.
Buildings are listed and notified as heritage buildings based upon fulfilment of certain criteria listed in the Act, explained Sunitha Rajesh, Partner, IndusLaw.
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In addition, these listed heritage properties are graded and categorized based on conditions laid out in the Act, to determine restrictions or permissions for the purpose of development, redevelopment or demolition of these properties, said Rajesh.
Lastly, unless a colonial property falls under the historical monument/archeological site bracket, there's no clause for a specific exemption from applicability of municipal taxes on these properties, legal professionals who spoke to HT.com said.
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