Louis Vuitton leases four units at Jio World Plaza

The company manufactures luxury products ranging from luxury bags and leather goods to ready-to-wear clothes, shoes, perfumes, watches, jewellery, sunglasses and accessories among others as per the agreement between Louis Vuitton India pvt ltd and Reliance Industries Ltd

Mumbai: Global luxury fashion house Louis Vuitton has leased four units totalling 7,365 sq ft for its new store in Jio World Plaza, the uber luxury mall inside Jio World Convention Centre at Bandra Kurla Complex, for a monthly rent of ₹40.50 lakh.

Mumbai, India - Sep 01, 2023 : Jio World Plaza on One Big fashion Brand has leased space inside Jio World at BKC, Bandra, in Mumbai, India, Thursday, Sep 01, 2023. (Photo by Vijay Bate/HT Photo)

The company, which was founded in 1854 by Louis Vuitton in Paris, opened its first store in India at the Oberoi Hotel, New Delhi, in 2003; today, it has three stores across the country, including one in UB City in Bengaluru, DLF Emporio in New Delhi, and Hotel Taj Mahal Palace in south Mumbai.

The Jio World Centre has a convention and exhibition centre, a commercial complex which includes shops, and a multiplex cinema where units 1-08, 1-09, 1-10 and 1-11 on the ground floor of the mall have been leased by the French brand. The company manufactures luxury products ranging from luxury bags and leather goods to ready-to-wear clothes, shoes, perfumes, watches, jewellery, sunglasses and accessories among others as per the agreement between Louis Vuitton India pvt ltd and Reliance Industries Ltd.

The agreement registered on August 21 has been accessed and shared by Floortap.com, a marketplace for commercial properties started by CRE Matrix group.

The licensee paid a License Fee Security Deposit of ₹2.43 crore for the lease which commences on February 13, 2023, for 114 months (9.5 years), with a lock-in period of 60 months, according to the documents.

According to the agreement, the licensee will be charged a Common Area Maintenance security deposit of ₹24.30 lakh, and a Fit Out deposit of ₹29.46 lakh and will be given a fit-out period of 150 days.

According to the documents, the monthly rent has been calculated based on the minimum monthly guaranteed sum or 6% of Net Revenue Share, whichever is higher. The Net Revenue Share has been capped at ₹950 per sq ft of the chargeable area. Louis Vuitton is not required to pay if the net revenue for the month stands at or below ₹6.74 crore, the agreement terms state. If the net revenue share stands at ₹11.65 crore, the licensee will have to pay at the rate of ₹950 per sq ft of the chargeable area, but if it stands at ₹12.27 crore, the licensee will continue to pay ₹950 per sq ft

The agreement also mentions that there will be 15% rent escalation every 36 months. The monthly rent, which works out to ₹550 per sq ft per month, is one of the highest lease rentals in Bandra Kurla Complex. Maker Maxity commands a rent of ₹500-505 per sq ft per month. Real estate industry sources said Reliance plans to bring in some of the world’s top luxury brands at Jio World Plaza and is in talks with another big luxury brand.