Source: The Economic Times, Apr 12, 2016
MUMBAI: In the largest ever space transaction by any international retailer on high streets across the country, Spanish fashion chain Zara has picked up 50,000 sq ft carpet space in South Mumbai’s most prime location of Flora Fountain, said two persons familiar with the development.
The world’s biggest fashion retailer has leased the space on the ground floor of Ismail Building diagonally opposite HSBC’s India head office located in Fort.
The retailer will be paying an astronomical annual rent of Rs 30 crore and the lease will run for tenure of minimum 15 years with a five-year lock in. “The transaction has been inked and Zara will start working on its interiors in the next couple of weeks. Monthly rent for the same Rs 2.5 crore,” said one has been set at of the persons mentioned above.”The brand was looking for an apt location with blend of vintage and contemporary outlook and Flora Fountain fit the bill perfectly .”
Industria de Diseno Textil S.A. or Inditex, the owner of Zara, could not be reached until the time of going to press. Transaction advisor CBRE declined to comment.
Zara outlets in India are operated by Inditex Trent, the joint venture between Spain’s Inditex and the Tata Group. In August, Zara opened its outlet in Hyderabad in a mall taking its store count in India to 17 until then.
Currently , Zara has three stores in Mumbai including Palladium Mall in Lower Parel, Phoenix Market City in Kurla and Infi nity 2 in Malad suburb. However, the Flora Fountain out let will be Zara’s first store on a high street in India.
The Flora Fountain and its surrounding area is home to several commercial buildings in NeoClassical and Gothic revival designs. The heritage precinct houses offices of several domestic and international banks.