Kathmandu: A wholesale trade hub is being built in Balkhu, Kathmandu, targeting merchants from Mahabouddha, with a total investment of Rs 9.3 billion.
The project, called Adar Trade Mall, is being developed by Adar Multi-Investment Company.
Initially, the company had planned to build the mall with an investment of Rs 8 billion, covering 429,480 square feet. However, the investment has now increased due to a 50 percent rise in per-square-foot costs for saleable space.
The company now estimates that 332,949 square feet of saleable area will require an investment of Rs 9.3 billion.
So far, the company reports 63 percent financial progress. It plans to sell commercial spaces specifically targeting wholesale traders, especially those currently operating in the Mahabouddha area. Altogether, 2,059 shop units will be available, though the original plan was to construct 2,100 units.
The company is owned by 519 individuals, most of whom are wholesale traders and importers, including many active in Mahabouddha. To support financing, the company has secured a credit rating for short-term loans amounting to Rs 2.81 billion, in addition to an earlier rating for Rs 1.5 billion.
According to the company, project progress depends heavily on bookings and advance payments. Construction of the building is now in its final stage. So far, 32 percent of the total area has already been booked, from which the company has collected 56 percent of the required payment as advance.
Adar Multi-Investment Company, established in 2017, stated that construction delays occurred in the past because advance payments from bookings did not arrive on time.
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