IKEA may Buy 3.5 lakh sqft Re­tail Space in Bori­vali

The Economic Times - - Companies - Kailash.Babar@ times­group.com

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

IKEA IN­DIA

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