Spanish fashion chain Zara leases largest ever retail space by a foreign brand in India
The Spanish fashion chain Zara has leased 50,000 sqft of carpet space in South Mumbai’s most tony location of Flora Fountain, on the ground floor of the Ismail Building. This is the largest ever space transaction by any international retailer on high streets across the country. The brand was looking for an apt location with blend of vintage and contemporary outlook and Flora Fountain fits the bill perfectly.
The lease will run for a tenure of minimum 15 years with a five-year lock in period and the retailer will be paying a cool Rs 30 cr annually as rent for it. The transaction has been inked and Zara will start working on its interiors in the next couple of weeks.
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 Ci ty in Kurla and Infinity 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.
The nearby area of Kala Ghoda and Horniman Circle is already home to several India and global luxury and designer brands including Hermes, Nirav Modi, and Masaba Gupta.
Largest retail space by a foreign brand in India