Apple will pay a rent of around Rs 40 lakh a month for its second retail store in Delhi, lease agreement documents reviewed by Moneycontrol showed.
The Delhi store, measuring 8,417.38 sq. ft. of carpet area and located at the Select City Walk Mall in south Delhi, is due to open its doors to the public soon after the company unveils the first outlet in Mumbai next week.
The lease deed for the store, located on the first floor, was signed on July 18, 2022 between Select Infra and Apple India for 10 years. Apple has the option to renew the lease for another five years but will have to give a notice of at least six months, documents shared by CRE Matrix showed.
The Delhi store pales in comparison to the Mumbai one, which is sprawling at 20,000 sq. ft. of retail space over three floors in a mall in the commercial hub of Mumbai’s Bandra Kurla Complex (BKC).
The location in a bustling mall also makes the Delhi store shorn of exclusivity. But Apple is paying roughly Rs 42 lakh for 20,000 sq ft in Mumbai. In other words, retail space in Delhi is more expensive than in India’s financial capital, per this deal.
Apple’s rent will be increased by 15 percent every three years.
Apple paid a security deposit of Rs 1.19 crore — equivalent to three months’ rent — showed the documents. Apple also has to pay monthly common area maintenance charges and mall management charges of Rs 85 per sq. ft. month, including applicable taxes.
“Apple has signed a lease with Select Citywalk mall for 8,400 sq. ft. of space at a rent of approximately 475 per sq. ft. plus CAM (Common Area Maintenance charges). The rental is about Rs 40 lakh per month. This is a 10-year lease with a five-year lock-in with 15 percent escalation every three years. The average store size in this Mall is about 1,500-2,000 sq. ft. The rentals have seen a steady increase in the period post COVID-19. This is not the largest store,” said Gagan Randev, Executive Director – capital markets, India Sotheby’s International Realty.
An email has been sent to Apple for a response.
Apple’s Mumbai store at BKC is called Apple BKC and will open on April 18. The Mumbai store is inspired by the artwork inside the iconic 'Kaali Peeli' taxis in the city. Apple BKC creative will also comprise interpretations of the decals along with several Apple products and services that will be available for consumers.
Apple CEO Tim Cook is expected to visit India for the opening of the two flagship stores.
Apple launched its online retail store in India in 2020. Its 2021 plans for the launch of an offline retail store in the country were delayed due to the COVID-19 pandemic.