IKEA inks realty deal worth Rs. 214cr

    IKEA Realty Deal
    Accelerating the process of expanding its operational ambit to more and more areas across the country, the Sweden-based furniture retailing giant Ikea is all set to acquire 26-acre plot on the outskirts of Mumbai from Tata Group involving an investment worth Rs. 214-cr and is in the process of building the required infrastructure and buildings to house its furniture products and building a venue for the label's first outlet in western India. The transaction, subject to regulatory approvals but the player has turned very aggressive on its India plans, which housed Asia's third largest economy. The site at the MIDC Industrial Estate at Turbhe on Thane-Belapur road in Navi Mumbai could also house a back-end unit for IKEA, which is known for its huge warehouse-like stores. The company, among the first to move into India after the country allowed 100% foreign direct investments in single brand retailing, intends to invest Rs. 10,500-cr to open 25 stores in one of the world's fastest growing regions. Last year, the chain had bought a 13-acre plot in Hyderabad for its maiden outlet in the country. The store, spread across 4 lakh square feet, will open its doors next year. The per square-metre rate at which Ikea signed the deal at the MIDC area is lower than the current market rate, said an industry insider, adding that at Rs 214cr, the rate works out to be Rs 20,400 per square metre as against the current rate of Rs 25,000-Rs 30,000 per square metre in the same area, he claimed.
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