Trent to acquire Lodha office space for ₹200 crore
Trent may buy four floors and lease another floor at the Lodha’s upcoming tower at Wadala in Mumbai
Mumbai: In one of the largest office deals this year, Tata group’s retail arm Trent Ltd is close to buying around 120,000 sq. ft of space at a Lodha group property coming up at Wadala in central Mumbai for over ₹200 crore, two people in the know said.
Trent will buy four floors and lease another floor at the tower, said the first of the two people cited above, both of whom spoke under condition of anonymity. Each floor is spread across 30,000-33,000 sq.ft, the person said.
While Trent is purchasing four floors at ₹17,000-18,000 per sq.ft, the fifth floor would be leased at ₹150 per sq.ft per month, according to the second person.
The 30-storey commercial building is part of a mixed-used development called New Cuff Parade that comprises 10 residential buildings and two commercial towers.
Spokespersons for Trent and Lodha Developers Ltd declined to comment on the development.
Trent operates some of India’s largest retail stores including Westside, Landmark and Star Bazaar. It is planning to use the new space, which is expected to be ready by January, to expand its office. At present, its corporate office is located at Bandra Kurla Complex (BKC).
The Tata group company, which also has a joint venture with Spain’s Inditex group that owns clothing brand Zara, has been on an expansion spree.
In a 21 August interview, Trent chairman Noel Tata said the company has “speeded” up its expansion with plans to open around 40 stores of Westside, apart from ramping up its retail brands. At present, Trent has over 130 Westside stores across the country.
Lodha group, which has largely focussed on building homes, has ramped up its commercial office business in the last year. By 2021, the Mumbai-based firm expects to have commercial assets under management of $1 billion. At present, it is also setting up a warehousing park in the city, apart from developing retail and office buildings.
Despite the slowdown in the residential market, commercial property business has continued to pick up in the last three years. According to an August report by property consultant firm Colliers International, around 12.6 million sq ft of office space was leased in India during April to June period this year, driven by expansion from technology companies. According to the report, some of the major leasing transactions in Mumbai include WeWork leasing around 75,000 sq ft at Worli and Kotak Mahindra taking up around 70,000 sq ft at Thane.
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