Tata Re­tail Arm Ac­quires Of­fice Space in Lodha’s Mum­bai Project

The Economic Times - - Brands: Creating Desire - [email protected] times­group.com

Mum­bai: In the first large com­mer­cial real es­tate trans­ac­tion of this year, Tata Group’s re­tail arm Trent has ac­quired five floors of of­fice space in Lodha De­vel­op­ers’ re­cently-com­pleted of­fice build­ing Lodha Ex­celus at New Cuffe Pa­rade in cen­tral Mum­bai.

Of the five floors, Trent has bought four floors on an out­right ba­sis, while one floor has been picked up on lease for a long term of 25 years. The deal is val­ued at about ₹ 300 crore for a to­tal 1,50,000 sq ft of leasable area.

Trent op­er­ates re­tail chain West­side, Land­mark, a fam­ily en­ter­tain­ment for­mat store, and Star Bazaar, a hyper­mar­ket chain which is a joint ven­ture with UK’s su­per­mar­ket chain, Tesco. The newly ac­quired space is ex­pected to house con­sol­i­dated of­fices of these brands. Rental for the floor picked up on lease is set at ₹ 125 per sq ft a month. The lease con­tract in­cludes a clause with 15% rental es­ca­la­tion ev­ery three years.

“Over the last three years, we have been fo­cus­ing on build­ing a sig­nif­i­cant rental busi­ness through of­fice, re­tail and ware­hous­ing projects. We have nu­mer­ous com­pleted as­sets and a sig­nif­i­cant amount un­der de­vel­op­ment which will be com­pleted over the next three years, giv­ing us an annuity busi­ness worth over ₹ 15,000 crore,” Ab­hishek Lodha, MD, Lodha De­vel­op­ers, told ET, while con­firm­ing the trans­ac­tion.

Trent has picked up space in the first com­pleted of­fice build­ing, spread over a leasable area of eight lakh sq ft at New Cuffe Pa­rade. The com­pany has started work on the sec­ond of­fice build­ing of around 1.1 mil­lion sq ft. Lodha De­vel­op­ers has to­tal 2.5-3 mil­lion sq ft of­fice space planned across three tow­ers in­clud­ing the first com­pleted tower.

ETs’ emailed query to Trent re­mained unan­swered till the time of go­ing to press.

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