Colliers transacts 3.25 lakh sq ft space for Metro Brands in Bhiwandi warehou | Mumbai news - Hindustan Times
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Colliers transacts 3.25 lakh sq ft space for Metro Brands in Bhiwandi warehou

Feb 09, 2024 02:21 PM IST

Bhiwandi has emerged as one of the most preferred warehousing markets, given its strategic location, stable rentals, and proximity to major city hubs in Thane and Mumbai.

Metro Brands Limited, one of the largest retailers of footwear and accessories, has leased Built-to-Suit (BTS) 3,25,000 sq ft space in a Grade A warehouse in Bhiwandi, the transaction advisor Colliers India said on Thursday.

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MBL operates over 800 stores across 180 cities in India and had appointed Colliers to identify well-equipped, modern spaces that offered increased height, higher floor load capacity, advanced flooring systems, automated material handling equipment, robust fire safety protocols and a clean environment.

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On conducting a market analysis and gaining a clear understanding of MBL’s vision and its present and future business needs, Colliers experts proposed BTS space instead of a conventional one, given the cost-effectiveness and flexibility offered. Bhiwandi’s largest developer, RK Builders Group, who have successfully delivered over 7.5 million sq. ft.and presently have 2.5+ million sq. ft. of Grade-A warehousing under construction, were able to design and deliver this project for MBL. Committed to scaling its India operations and in alignment with its expansion plans, MBL has confirmed a 5-year lock-in period. This is the largest space take-up by an Indian footwear company.

According to the latest Q4 2023 Industrial Snapshot released by Colliers, leasing activity in the industrial and warehousing segment has been steadily increasing, with the sector recording 25 million sq. ft. of gross absorption in 2023, a 2% YoY jump. In FY 2023, the most active micro market Mumbai’s Bhiwandi which has emerged as one of the most preferred warehousing markets, given its strategic location, stable rentals, and proximity to major city hubs in Thane and Mumbai.

“The retail industry is bouncing back as fresh demand takes over the market, given the upgrade in per capita income and a strong appetite for higher lifestyle. We were able to carefully understand the business expansion plans of the client and devise a real estate strategy that would fetch long-term gains. The warehousing sector is advancing rapidly, with the adoption of new technologies, infrastructure upgrades, and smoother processes,” says Vijaya Ganesh, Managing Director, Industrial & Logistics Services, Colliers India.

Kaushal Parekh, Chief Financial Officer, Metro Brands Limited said, “Colliers’ expertise in real estate has been instrumental in securing a tailored built-to-suit warehouse space for us. This strategic move reinforces our commitment to quality and efficiency, allowing us to meet the growing demands of our business.”

MBL retails brands like Metro Shoes, Mochi, Walkway, international brands like Crocs and FitFlop. It recently announced a strategic partnership with US-based footwear giant Foot Locker, and with Fila already on board, MBL is poised to elevate the sportswear culture in India.

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