IKEA may Buy 3.5 lakh sqft Retail Space in Borivali
Mumbai: Swedish furniture retailing giant IKEA is in talks with Oberoi Realty to buy a built-to-suit retail space for over .₹ 900 crore in the Mumbai-based developer’s upcoming project in the Borivali suburb of Mumbai, two persons familiar with the development said.
The company is buying retail space of over 3.5 lakh sqft, the largest to be occupied by any single furniture brand in the country.
The proposed space will be part of Oberoi Realty’s 25-acre project. The developer had bought the land parcel auctioned by Tata Steel in 2014 for .₹ 1,155 crore. Last year, the builder had launched a residential project on the plot with 10 towers of 60 storeys and 300 apartments each.
“IKEA India has expressed interest in buying the first land parcel in Mumbai. As of now, we are awaiting approvals from relevant authorities before the final sign-off and will comment once the process is complete,” Ikea India said in response to an email query from ET.
“We are, in parallel, looking for land sites in the prioritised states of Delhi & NCR, Maharashtra and Karnataka, as part of the first phase of retail expansion in India,” the company said. “It is a priority to find the right store locations at the right price, with metro connection and easy access to public transport. In July 2015, we purchased our first site in India in Hi Tec city in Hyderabad and will open the first Indian store in Hyderabad by autumn 2017. The goal is to open 25 stores in India by 2025,” it said.
Last year, the chain had bought a13acre plot in Hyderabad for its maiden outlet in the country. A spokeswoman for Oberoi Realty declined to comment for the story. Last month, Tata Group company Rallis India had announced that it had signed an agreement with IKEA India for assignment of its leasehold rights on a 26-acre land at MIDC Industrial Area in Navi Mumbai’s Turbhe locality for .₹ 214 crore. IKEA India has expressed interest in buying the first land parcel in Mumbai. As of now, we are awaiting approvals from relevant authorities