DMart’s 28-year lease with Adani signals a shift toward “annuity-style” assets, locking in long-term supply chain stability.
Adani Logistics has formalised a long-term lease agreement with Avenue Supermarts, the operator of the popular retail chain DMart, for a substantial industrial facility situated in Panvel, on the outskirts of Mumbai.
The agreement involves approximately 66,250 square feet of warehousing capacity located at Dharna Camp in the Raigad district. The commitment spans nearly 28 years, representing a significant long-term strategic partnership between the two entities.
According to official documentation, the financial structure of the deal includes:
- Total valuation: The cumulative rental income over the lease duration is projected to exceed ₹114 crore.
- Security deposit: Avenue Supermarts has provided an initial deposit of ₹14.84 lakh.
- Rental escalations: The contract stipulates a 12 percent increase in rent every three years, ensuring the asset’s yield keeps pace with market trends.
The facility is positioned within a prime logistics hub. Its proximity to the Jawaharlal Nehru Port Authority and the Navi Mumbai International Airport provides DMart with a critical advantage in managing its supply chain and stock replenishment for the high-demand Mumbai Metropolitan Region.
This transaction highlights a growing trend in the Indian industrial sector where retailers prioritise long-term security over short-term flexibility. By locking in a site for almost three decades, Avenue Supermarts protects its operations from the rising property costs typical of the Maharashtra coastal belt, while Adani Logistics secures a stable, high-profile tenant for its infrastructure portfolio.
SOURCE – HINDUSTAN TIMES
