In a Big Commercial Rental Deal, Asian Paints Leases Around 120,000 Square Feet Office Space in Lower Parel, Mumbai

Mumbai:

As per Mumbai real estate news sources, Asian Paints, India's biggest maker of decorative paints, has leased about 120,000 square feet of office space in the Lower Parel business district of Mumbai. According to insiders with direct knowledge of the company's plans, the new commercial office space would act as the core for the company's new business vertical, home furnishings.

Asian Paints has leased the property for a total of nine years, including a commitment period of five years. The large paint company is obligated to pay around Rs166.32 crore in rent for the duration of the lease, minus any price rises and maintenance expenses.

According to one of the aforementioned persons, the agreement says that rents would rise by 15% after three years and by 5% every year afterwards. The company debuted in home furnishings and formed a collaboration with a premium home furnishings brand in 2012. Asian Paints will be responsible for the whole sales and marketing of the collaboration's product lines, while the partner furnishing brand will focus on design and production. Additionally, it has entered the home decor business.

Originally known as Vodafone House, the Lower Parel office space was formerly used by Vodafone India.

More about Asian Paints

The Asian Paints Ltd. headquarters are located in Mumbai, Maharashtra, India, although the company has factories and warehouses around the globe. The company manufactures, retails, and wholesales paints, coatings, home ornaments, and plumbing fittings, and also offers installation services.

Asian Paints' net income in 2022 September quarter increased by 31% year-over-year to INR 782.71 crore, after a 20% growth in sales to INR 8,430.60 crore.

Somwhere in 2022, Asian Paints announced INR 2,100 crores in phased investments to construct a new plant in India for the production of vinyl acetate ethylene emulsion (VAE) and vinyl acetate monomer (VAM). The company announced a further INR 550 crore investment to develop a white cement factory in the United Arab Emirates in partnership with two local businesses. 

Conclusion:

The market for commercial real estate in Lower Parel has always been good but with such big ticket size deals in 2022, the demand for offices and retail spaces in Lower Parel will only go higher.