With space in the core area of Kathmandu becoming increasingly scarce, multi-storeyed commercial complexes are becoming a necessity for private companies, business firms, INGOs and NGOs to house their offices. This has attracted realty developers towards construction of commercial complexes in the main business areas of Kathmandu.

On New Year’s Day, one more commercial complex, Trade Tower Nepal (TTN), threw open its doors. Developed by Kanchanjungha Housing Limited (KHL), TTN at Thapathali is different from the existing commercial complexes.

Unlike other complexes that contain shopping centres and offices, TTN has been specially designed to provide office space. KHL chairman Guru Prasad Neupane said that TTN would address the need for spacious offices in the main business district of Kathmandu. “With most organisations still housed in residential buildings, TTN hopes to address the need for spacious office,” added Neupane.

With land prices in the capital’s core being very high, locating offices in commercial complexes makes huge business sense for many. Developers have been constructing these complexes on leased land and renting out space. KHL has leased the land belonging to Nepal Food Corporation for 30 years to build TTN.

Shiva Hari Dangal, managing director of KHL, said that the complex cost around Rs 500 million to build. Out of the total outlay, 40 percent is equity and the rest is debt financing. Laxmi Bank has financed the construction of TTN.

With Thapathali already boasting offices of many private companies and automobile showrooms, the eight-storied TTN with 175,000 sq ft of space hopes to attract private companies, corporate houses, banks and business bodies.

According to Dangal, 60 percent of the building has already been booked by various organizations including the Bank of Asia Nepal, United Distribution Network and the Confederation of Nepalese Industries (CNI). The Bank of Asia Nepal has leased 32,000 sq ft on the ground and first floors for its corporate office and main branch, while CNI will establish its secretariat on the fifth floor. Currently, the Bank of Asia Nepal maintains its corporate office in Tripureshwor while the CNI is operating from Teku.

The tower is designed to accommodate banks and financial institutions on the first floor, hydropower companies on the second floor, and trade and tourism-related institutions on the third floor. “The floors above the fifth floor are suitable for other domestic and international institutions,” said Dangal.

Highlighting the arrangement of the basic infrastructure, Dangal said that KHL had arranged 2,000 telephone lines and optical fibre for telecommunication and internet connectivity. “Nepal Telecom has ensured us that it would provide telephone lines and internet connection on demand,” said Dangal.

Two more commercial complexes are in the offing in the capital. Civil Group is constructing Civil Trade Centre at Sundhara with an investment of over Rs 800 million. The 10-storied trade centre is planning to lease its seventh, eight and ninth floors to offices. Likewise, Star Mall at Putali Sadak is all set to start operations. The seven-storied mall will house offices on its fifth, sixth and seventh floors. Star Holdings, the developer of the mall, has invested around Rs 750 million in its construction.

source: The Kathmandu Post(2011),"Cramped Kathmandu goes for highrises", The Kathmandu Post,15 April 2011