Actor Salman Khan has leased an area of 27,650 sqft spread over four floors to TNSI Retail Private Limited, a subsidiary of Future Retail Limited, in Mumbai at a rent of around Rs 89.6 lakh per month for two years. The lease was renewed on September 5, documents shared by CRE Matrix showed.
The lease agreement for commercial premises located on the lower ground floor, ground floor, first floor and second floor at Santacruz West in Mumbai has been renewed between licensor Salman Khan and licensee TNSI Retail Private Limited, the documents showed.
The monthly rent for the first year is Rs 89.6 lakh and Rs 94.08 lakh from the second year onwards. The company has paid a security deposit of Rs 2.68 crore, the documents showed.
The chargeable area is 27,650 sqft and 23,042 sqft is the carpet area.
The lease deed comes with a rent escalation clause of 5 percent increase at the end of 12 months.
This is a renewal high-street lease agreement which initially started in 2017. The leased area by the brand FoodHall on Linking Road, Santacruz West is 23,042 sqft spread over four floors -- basement plus ground plus two floors.
The lease started at a monthly rental of Rs 80 lakh in July 2017 between Salman Khan and Future Retail for 60 months. Then the monthly rent was revised by approximately 12 percent to Rs 89.6 lakh in July 2020 (after three years). Now both parties have renewed the lease in August 2022 for two years at a monthly rent of Rs 89.6 lakh for the first year and Rs 94.08 lakh for the second year, said CRE Matrix.
A comment from Salman Khan’s office is awaited. Attempts to reach Future Group, which is currently going through the Corporate insolvency resolution process, did not yield any response. In July this year, the Mumbai bench of the National Company Law Tribunal (NCLT) had ordered bankruptcy proceedings against debt-ridden Future Retail Ltd.
“We believe Foodhall has seen phenomenal footfalls and success at this high-street location; therefore renewal of lease was imminent. The hike of 12 percent after the first 3 years and 5 percent after 3 years favours the tenant. Although high streets have bounced back in terms of occupancy and rentals post Covid-19, we believe Foodhall was able to bargain a good deal with Salman Khan. Linking Road high street which was earlier limited to Bandra, has spilled over to Khar, Santacruz and up to Juhu. Most popular retailers, F&B brands and banks must have a presence on the Bandra-Juhu Linking Road. Marks & Spencer is opening its flagship store on the same street towards Santacruz West,” said Abhishek Kiran Gupta, CEO & Co-founder, CRE Matrix.