Metro 3: MMRCL to monetise 1.5 lakh sq.ft. space at stations

Leasing area for retail to generate ₹20-25 crore annually

The Mumbai Metro Rail Corporation Limited (MMRCL) has set the ball rolling to lease around 1.5 lakh sq. ft. of space across stations of Metro Line 3 as part of its initiatives to generate non-fare revenue.

The corporation recently floated an expression of interest for the initiative and hopes to generate approximately ₹20 to ₹25 crore per annum from the same once the line is operational.

The retail spaces for the initiative have been broken into two categories — large format retail and kiosk-based retail. While nearly all stations will have space carved out for the latter, MMRCL has large contiguous spaces ranging from 20,000 to 40,000 sq.ft. at four stations: Cuffe Parade, Siddhivinayak, Bandra Kurla Complex and Terminal 2.

Around 1.17 lakh sq.ft. is covered under large format retail, with the largest continuous space at Siddhivinayak and Terminal 2 — 31,000 sq.ft. of space each at the mezzanine level in the former and at the concourse in the latter.

Cuffe Parade has the most amount of space, nearly 37,000 sq.ft., divided between 24,000 sq.ft. in the mezzanine level and 13,000 sq.ft. at the concourse, which can be leased.

“The space available can be accessed by both passengers and non-passengers alike. So we are looking at food courts, supermarkets, salons, bank branches and pharmacies that can be set-up in the area,” an MMRCL spokesperson said.

Under the kiosk-based retail segment, small spaces have been carved within the non-ticketing area of other stations. The spaces would typically range between 300 to 1,000 sq.ft. and will largely cater to the passengers’ needs. The space mix being explored includes food stalls and kiosks, travel retail stores like the 7-Eleven formats, ATMs and vending machines among others.

Shadab Siddiqui of Auctus Advisors, which is providing consultancy to MMRCL for these initiatives, said currently there was no format of ‘transit retail’ within the larger retail space.

“Transit retail has grab and go product assortment for people with low dwell time. This covers ready-to-eat packed meals, packed sandwiches, newspaper and magazines, coffee vending machines and more. These are low-involvement products with high trading velocities,” he said.

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Printable version | Apr 5, 2020 4:35:43 PM |

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