Colliers India recently transacted a built-to-suit (BTS) Grade A warehouse space in Mumbai for Metro Brands (MBL), one of India’s largest footwear and accessory specialty retailers.
MBL operates more than 800 stores across over 180 Indian cities, says a release from Colliers.
“With the changing times, warehousing solutions have also evolved tremendously, especially in the last decade. Major contributors of this change are changing customer dynamics, advancement in technology, demographic changes in demand and supply, and proliferation of e-commerce. MBL recognised the need to operate from a Grade-A space and appointed Colliers to identify well-equipped, modern spaces that offered increased height, higher floor load capacity, advanced flooring systems, automated material handling equipment, robust fire safety protocols and a clean environment.”
Colliers’ experts proposed BTS space instead of a conventional one, given the cost-effectiveness and flexibility offered, the release added. “Bhiwandi’s largest developer, RK Builders Group, who have successfully delivered over 7.5 million sq. ft. and presently have 2.5+ million sq. ft. of Grade-A warehousing under construction, were able to design and deliver this project for MBL.”
Vijay Ganesh, Managing Director, Industrial & Logistics Services, Colliers India says: “I am proud of the team for identifying a series of conveniently located, well-equipped spaces and finally assisting the firm in negotiating and transacting the selected space. We look forward to being closely associated with Metro Brands and providing our services for their future business needs.”
Kaushal Parekh, Chief Financial Officer, Metro Brands adds: “In line with our vision to grow aggressively, we continuously strive to enhance our operational capabilities and provide world-class services to our customers. Colliers’ expertise in real estate has been instrumental in securing a tailored built-to-suit warehouse space for us. This strategic move reinforces our commitment to quality and efficiency, allowing us to meet the growing demands of our business.”
The MBL family offers an array of brands including Metro Shoes, Mochi and Walkway and popular international brands like Crocs and FitFlop. MBL recently announced a strategic partnership with U.S.-based footwear giant Foot Locker, the release added. 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, an increase of two percent YoY, the release added.
For FY2023, the most active micro market was 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.