LuLu International Shopping Malls Private Limited has secured a lease for approximately 62,035 sq ft of carpet area located on the lower-ground floor of I-Thums Galleria in Greater Noida. This lease is set for a duration of 15 years, with a total rental cost nearing ₹51 crore, as per documents obtained from Propstack. The agreement stipulates a monthly rental rate of ₹45 per sq ft for the retail space and ₹20 per sq ft for the back-of-house area, resulting in an initial monthly rent of around ₹26.41 lakh.

The leased area includes 56,035 sq ft designated for retail and an additional 6,000 sq ft for back-of-house operations. Rent payments will commence following a 240-day fit-out period or on the opening date of the store, whichever occurs first.

As part of the lease agreement, LuLu has submitted a security deposit of ₹1.585 crore, which is equivalent to six months of the initial rental amount. The lease also incorporates provisions for a 9 per cent rent escalation every three years, ensuring that rental costs will increase periodically over the lease term.

Parking and Additional Charges

The lease includes provisions for ten car parking spaces and 100 two-wheeler parking spaces at no extra charge. Additionally, the company will incur monthly common area maintenance (CAM) charges estimated at ₹12.11 lakh, which will be paid to the maintenance company responsible for the upkeep of shared facilities.

The agreement further specifies a three-year lock-in period for the lessee and a 15-year lock-in period for the lessor, providing stability for both parties involved in the lease. These terms are designed to foster a long-term relationship between LuLu and the property owners, ensuring that the hypermarket can establish itself effectively in the region.

LuLu Group’s recent announcement of a new hypermarket, spanning 1 lakh sq ft, marks a significant expansion in Greater Noida, reinforcing its presence in Uttar Pradesh and the Delhi-NCR area. Company representatives clarified that the 1-lakh-sq-ft figure refers to the hypermarket’s larger super built-up area, which encompasses common spaces, while the registered lease specifically covers 62,035 sq ft of carpet area.

Future Expansion Plans

The UAE-based retailer has ambitious plans to invest ₹2,500 crore to establish 25 outlets across the Delhi-NCR region by the year 2030. This expansion strategy will include a combination of hypermarkets and smaller daily-concept stores, tailored to the demographics and needs of each location.

A senior executive from the company indicated that the choice of locations would depend on the catchment area and the population density, ensuring that each outlet is strategically positioned to meet consumer demand. This approach reflects LuLu’s commitment to adapting its retail offerings to the evolving market landscape.

Raja Seetharaman, co-founder of Propstack, commented on LuLu Group’s entry into Greater Noida, noting the increasing interest from institutional and large-format retailers in the expanding suburban markets of the National Capital Region. He emphasised that such significant anchor commitments demonstrate a sustained confidence in organised physical retail, especially in high-density residential areas where consumer spending is rapidly maturing.

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