Tech titan Apple is all set to open its first retail store in India in Mumbai. For that, it has leased over 20,000 sq ft of retail space spread over three floors in a mall in the commercial hub of Mumbai’s Bandra Kurla Complex (BKC), at a minimum guaranteed rent of around Rs 42 lakh per month, registration documents accessed by Propstack showed.
The minimum yearly rent is Rs 5.04 crore, to be paid quarterly. This works out to Rs 42 lakh per month. There is an in-built escalation clause of 15 per cent every three years. The deal also includes a revenue share component, where Apple has to pay 2 percent of revenues for 36 months, and 2.5 percent thereafter.
The agreement was registered on February 26, 2021. The store is located at the Jio World Drive Mall, that houses mostly luxury brands. It will be known as Apple BKC.
The tenant is Apple India Private Limited and the landlord is The Indian Film Combine Private Limited. The company has paid six months’ rent — Rs 2.52 crore — as security deposit. This will be increased every three years by 15 percent, the 414-page document showed. The tenure is for 133 months and comes with an option to extend it by another 60 months. Across three levels, the total area rented is 20,806 sq ft (7,014+7,014+6,778 sq ft).
The common area, facilities management, and shopping centre maintenance charges work out to be around Rs 110 per sq ft per month, according to the document.
Moneycontrol has reached out to Apple, but has not heard from the company. The story will be updated as and when they respond.
According to commercial realty experts, Jio World Drive is spread across an area of around 5 lakh sq ft.
The Cupertino, California-based firm is likely to open the store this month. The Apple store’s launch in India is likely to bring to an end years of regulatory roadblocks and negotiations with the Indian government.
"Hello Mumbai. We are getting ready to welcome you aboard our first store in India. And raring to see where your creativity takes you at Apple BKC," a statement on the Apple India store website said.
India has been among the fastest-growing markets for Apple in the past few quarters, even as demand has slumped in many of its traditional markets. Apple posted a 5 percent drop in revenue from a year earlier in the December quarter, but posted double-digit growth in India, setting a quarterly revenue record for itself.
BKC is perhaps the most expensive commercial real estate in the country, with rents going up to Rs 400-500 per sq ft per month. For instance, Bank of China has leased 9,300 sq ft of office space at a rent of Rs 500 per sq ft per month at Maker Maxity in BKC, for five years.
This indicates there is still strength in the A-grade commercial market in the financial capital, despite the slowdown.
The leave-and-licence agreement, accessed by Propstack, a real-estate data platform, showed that the deal was signed between Agni Commex LLP and Bank of China Ltd on March 9, 2023.
Real-estate brokers told MoneyControl that even for Maker Maxity, this deal is a bit of an outlier as the average rent in Maker Maxity is Rs 445-475 per sq ft per month. The average rent for grade A commercial space in top-end commercial buildings in Bandra-Kurla Complex is in the range of Rs 260-320 per sq ft per month.
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