Salman Khan Leases Commercial Space in Santacruz, Mumbai to Food Square For Almost INR 1 Cr Per Month

In a significant real estate transaction, Bollywood megastar Salman Khan has strategically leased out a substantial commercial space he owns in the prime locale of Santacruz, Mumbai, to Food Square owned by Landcraft Retail Pvt Ltd for a whopping INR 1 Cr per month rent approximately.

This deal, marked at a monthly rent of close to INR 1 Cr, is set to reshape the commercial real estate dynamics in one of Mumbai's bustling areas, Linking Road.

1. Deal Dynamics & Space Details:

The leased property spans 23,042 sq ft and is comprised of a lower ground floor, ground floor, first floor, and second floor.

Location Insight: Situated on the renowned Linking Road in Santacruz, this area is a reputed shopping district and has been the locus of several significant commercial and retail transactions.

2. Financial Framework & Rent Structure:

The monthly rent is structured with a progressive increase, starting at INR 90 lakh for the first year and reaching INR 1.15 crore by the fifth year.Annual Rent: The cumulative annual rent for this prime space is around INR 12 crore.

Security Deposit: A substantial security deposit of INR 5.4 crore has been agreed upon for this deal.

3. Previous Lease History & Former Lessee:

The space was previously occupied by the Future Group, which was entangled in debt.

Initial Rent: The lease initiated in 2017 had a monthly rental of INR 80 lakh for 60 months, which was revised to INR 89.6 lakh in July 2020, marking a 12 percent increase.

Lease Renewal: The lease was renewed in August 2022 for two years at the revised monthly rent.

4. Market Impact and Industry Perspective:

Strategic Location: The property’s strategic location on Linking Road, a prominent shopping district, adds significant value and appeal to the deal.

Industry Reshaping: This transaction is indicative of the evolving commercial real estate landscape in Mumbai, with high-value deals and strategic leasing reshaping industry norms and standards.

5. Conclusion and Market Outlook:

Strategic Leverage: Salman Khan’s move to lease out this prime commercial space is a testament to the strategic leveraging of real estate assets in prime locations.

Market Resonance: This deal resonates with the market’s growing inclination towards high-value, strategic real estate transactions in prime locales, reflecting the dynamic interplay between celebrity ownership and commercial real estate.

Final Reflections:

This high-value leasing transaction between Salman Khan and Landcraft Retail Pvt Ltd underscores the strategic importance of location and value in commercial real estate dealings. It reflects the intricate dynamics and evolving patterns of the real estate market in prime urban locales, highlighting the convergence of celebrity influence and strategic asset leverage in shaping the commercial real estate landscape in Mumbai.