Aditya Birla Retail renegotiates rentals, saves 8-10 pc/store
With real estate sector in midst of a slump, Aditya Birla Retail has cashed in on opportunity to renegotiate rentals on several properties and has managed savings of 8-10 per cent on total rent of several of its stores.
By PTI |
MUMBAI: With the real estate sector in the midst of a slump, Aditya Birla Retail has cashed in on the opportunity to renegotiate rentals on several properties and has managed savings of 8-10 per cent on the total rent of several of its stores, a top company official said.
"We have saved nearly 8-10 per cent on the total rent of several of our stores. Renegotiating rates on properties has become easier now given the prevailing environment in the real estate sector," Aditya Birla Retail CEO Thomas Varghese said.
Aditya Birla Retail is a part of the Kumar Mangalam Birla-headed Aditya Birla group.
Giving a ballpark figure, Varghese said that if the rent on one of the company's store was Rs 10-crore, there was now a saving of around Rs 1-crore.
However, renegotiating rentals on older properties was proving difficult as compared to newer properties, he said.
"Three-four years ago, rentals were not that high and we bought lot of properties as the prices were attractive. However, renegotiating on those stores now has become difficult as their landlords are not agreeable to a reduction," Varghese said.
"We have saved nearly 8-10 per cent on the total rent of several of our stores. Renegotiating rates on properties has become easier now given the prevailing environment in the real estate sector," Aditya Birla Retail CEO Thomas Varghese said.
Aditya Birla Retail is a part of the Kumar Mangalam Birla-headed Aditya Birla group.
Giving a ballpark figure, Varghese said that if the rent on one of the company's store was Rs 10-crore, there was now a saving of around Rs 1-crore.
However, renegotiating rentals on older properties was proving difficult as compared to newer properties, he said.
"Three-four years ago, rentals were not that high and we bought lot of properties as the prices were attractive. However, renegotiating on those stores now has become difficult as their landlords are not agreeable to a reduction," Varghese said.
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