Unitech cuts rentals at Delhi retail mall

Real estate firm Unitech plans to reduce the rentals of its Unitech Metro Walk mall at Rohini in west Delhi by about 15 per cent. Currently, the 2,20,000 sqft mall has a rental of Rs 100-150 per sq ft.

Real estate firm Unitech plans to reduce the rentals of its Unitech Metro Walk mall at Rohini in west Delhi by about 15 per cent. Currently, the 2,20,000 sqft mall has a rental of Rs 100-150 per sq ft.

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“The mall does not have full retail occupancy despite higher footfalls because of high rentals,” said an official. “To rationalise our operation, we plan to switch to revenue sharing model with retailers.” Revenue sharing is a strategy by which the retailer has to share a fixed percentage of his revenue, usually 3 to 10 per cent, with the realtor. But Unitech is looking at 6 to 12 per cent of revenue share, the official said.

When contacted, general manager (corporate planning) of Unitech, R Nagaraju, declined to comment. Unitech is already into revenue sharing with Mc Donald. Unitech has three malls in Delhi NCR — Unitech Central at Gurgaon, The Great India Place at Noida and Metro Walk at Rohini.