In the largest ever warehousing space picked up by an Indian footwear company, Metro Brands Ltd has leased a built-to-suit 3.25 lakh sq ft warehousing space in Bhiwandi near Mumbai as the company is looking to expand its operations.
The company, counted as one of India’s largest footwear and accessory speciality retailers, has leased the space directly from RK Builders for a period of five years.
Metro Brands Ltd operated more than 826 stores across over 192 Indian cities in 31 Indian states and Union territories as of September 2023. The company recently entered into a strategic partnership with US-based footwear major Foot Locker.
“In line with our vision to grow aggressively, we continuously strive to enhance our operational capabilities and provide world- class services to our customers…This strategic move reinforces our commitment to quality and efficiency, allowing us to meet the growing demands of our business,” said Kaushal Parekh, Chief Financial Officer, Metro Brands Ltd.
Colliers India that acted as the transaction advisor.
“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…The warehousing sector is advancing rapidly, with the adoption of new technologies, infrastructure upgrades, and smoother processes,” said Vijaya Ganesh, Managing Director, Industrial & Logistics Services, Colliers India that acted as the transaction advisor.
RK Builders Group has so far delivered over 7.5 million sq ft and currently has over 2.5 million sq ft of Grade-A warehousing under construction.
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, up 2% from a year ago, showed a Colliers India report.
For the financial year 2023, the most active micro market was 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.
