Mumbai: A heritage building in the Hutatma Chowk area in south Mumbai will soon be the largest retail space in a high street for a foreign brand in the country.
In a deal touted as the biggest transaction of its kind in this segment, Zara, the Spanish clothing and accessories retailer, has taken on lease 50,000 sq ft carpet in Ismail building. Zara will pay around Rs 2.5 crore a month as lease rental to the building’s owner, Supariwala Exports. The deal works out to over Rs 450 a sq ft per month.
The four-storey Ismail building is near the ornamental Flora Fountain in the heritage Fort area. It earlier housed an office-cum-business centre. Now, the entire building will house the new Zara store.
Market sources said this is the largest high street retail space take up by an international brand ever in India.
The deal was brokered by global commercial real estate services firm, CBRE India. It refused to comment on the deal.
“This deal shows that there is a shortage of quality retail space in the country,” said market sources. “In Mumbai too there is a shortage of such space in malls,” they added.
A recent CBRE report said growing online sales will not deter retailers’ physical store expansion plans in 2016.
A study of over 150 major international brands based in Americas, Asia Pacific showed that while European countries dominate the target destinations this year, China is the top target market in Asia-Pacific region and the fourth most popular globally, with 27% of retailers looking to expand there.