Apple India continues to bolster its retail presence in the Indian market with a new lease agreement for a premium retail space in Mumbai’s bustling Borivali suburb. The tech giant has secured a substantial 12,616 sq ft retail unit in Oberoi Sky City Mall, marking another milestone in its ongoing efforts to increase its footprint across India.
As the company moves towards its expansion goals in the Asia-Pacific region, this deal highlights Apple’s commitment to offering its products and services in high-traffic locations. This article delves into the key details of Apple’s latest retail lease, its implications for the Indian real estate market, and what it means for the tech giant’s long-term strategy.
Key Details of Apple India’s Retail Lease in Borivali
Apple has leased a ground-floor retail space in the upscale Oberoi Sky City Mall in Borivali for a substantial ₹17.35 lakh per month. This deal is a significant addition to Apple’s growing portfolio of retail outlets in Mumbai and nationwide. Here’s an overview of the lease terms:
- Location: Oberoi Sky City Mall, Borivali, Mumbai
- Size: 12,616 sq ft of retail space with an additional 150 sq m for storage
- Annual Rent: ₹2.08 crore
- Monthly Rent: ₹17.35 lakh
- Lease Duration: 130 months (around 11 years)
- Rent Escalation: 15% every three years
- Revenue Sharing: 2% for the first 42 months, increasing to 2.5% thereafter
- Security Deposit: ₹1.04 crore
- Lock-in Period: 10 years and 10 months
The new space includes five designated parking slots and will serve as another high-profile location in Apple’s Indian retail strategy. The lease agreement also includes a revenue-sharing clause, which is becoming a common trend in Apple’s retail leases across the globe.
Apple’s Growth Strategy in India and Asia-Pacific
Apple’s decision to secure retail space in Borivali is part of its broader strategy to expand its presence in key markets, particularly in the Asia-Pacific region. The company is focusing on growing its retail network in India, a rapidly growing market for premium products like the iPhone, iPad, and MacBook.
In addition to this new lease, Apple is also planning to open 15 new stores in the Asia-Pacific region, five in Europe and the Middle East, and four in the United States and Canada by 2027. These efforts include renovating existing stores and opening new flagship locations, such as a major store in Paris and another in Shanghai’s Jing’an Temple Plaza.
This expansion reflects Apple’s recognition of India as a critical market, as evidenced by its increasing retail presence in high-demand locations such as Mumbai and Bengaluru.
Apple’s Record-Setting Lease Deals in Mumbai
Apple India has consistently set new records for retail space leases in the country. Last year, Apple secured one of the highest-ever commercial lease rentals in India by leasing a 6,526 sq ft space in Mumbai’s Bandra Kurla Complex (BKC) for ₹48.19 lakh per month. This deal further solidifies Apple’s commitment to securing prime retail locations in the country’s top cities.
The Borivali lease deal follows a similar trend of securing prestigious retail spots with high visibility, setting the stage for a premium shopping experience for Indian consumers. Apple’s focus on major malls and high-demand areas ensures that its brand is accessible to a wide audience of tech enthusiasts and premium buyers.
Quick Facts About Apple India’s Latest Lease Deal
| Fact | Details |
|---|---|
| Retail Space Size | 12,616 sq ft |
| Monthly Rent | ₹17.35 lakh |
| Annual Rent | ₹2.08 crore |
| Lease Term | 130 months (11 years) |
| Rent Escalation | 15% every 3 years |
| Revenue Sharing Clause | 2% for first 42 months, 2.5% thereafter |
| Security Deposit | ₹1.04 crore |
| Lock-in Period | 10 years, 10 months |
Quotes from Industry Experts
While Apple India did not respond directly to inquiries, real estate analysts believe that the decision to expand in Borivali reflects the company’s long-term confidence in Mumbai’s real estate market. According to Pradeep Jain, a leading real estate consultant, “Apple’s focus on high-traffic, high-value locations underscores its strategy to dominate the premium retail sector in India. This move will not only boost Apple’s retail footprint but also solidify its brand presence in Mumbai, which is a critical market for the company.”
Frequently Asked Questions (FAQs)
1. What is the size of the retail space Apple India leased in Borivali?
- Apple India leased 12,616 sq ft of retail space in Oberoi Sky City Mall, Borivali.
2. What is the annual rent for the Borivali retail space?
- The annual rent is approximately ₹2.08 crore for the retail space in Borivali.
3. What is the duration of the lease agreement?
- The lease agreement is for a total of 130 months, or approximately 11 years.
4. Does the lease include any revenue-sharing terms?
- Yes, Apple will pay 2% of its revenue from the store for the first 42 months, and 2.5% thereafter.
5. How does this lease fit into Apple’s broader retail strategy?
- This lease is part of Apple’s ongoing expansion in the Asia-Pacific region, as it focuses on increasing its retail presence in key markets such as India.