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