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Inox leases 1 lakh sq ft space in upcoming Oberoi realty mall

Inox Leisure, India’s second largest multiplex chain, has signed a lease agreement with Oberoi Realty for 1 lakh sq ft space in the developer’s under-construction mall in Mumbai’s western suburb Borivali.The lease runs for 15 years, said two persons familiar with the development. Inox is planning to develop one of the largest multiplexes in the country with up to 15 screens, which will include standard as well as premium formats such as Insignia, IMAX, and Kiddles.As per the industry sources, Inox may end up spending Rs 50-60 crore on the multiplex alone. According to the deal terms, the multiplex chain will pay rentals of Rs 275 per sq ft per month with an escalation clause for every three years, taking the total lease pay-out to over Rs 500 crore.“The deal has been in the making for the last few months and has now been concluded,” said one of the persons mentioned above. Oberoi Realty’s proposed retail property Skycity Mall spread over a total 1 million sq ft is scheduled to be completed over the next two years.The mall is part of the development the company is undertaking on the 25-acre land parcel it had bought from Tata Steel for Rs 1,155 crore through an auction. Last week, Capacite Infraprojects announced receiving contract worth Rs 271.47 crore to construct Skycity Mall from Oberoi Realty’s subsidiary Incline Realty.ET’s email query to Oberoi Realty remained unanswered until press time, while Inox’s spokesperson was not available for a comment. In an earlier interaction, Siddharth Jain, director, Inox Leisure, has said that it is making the “boldest move” in the market and has been very aggressive on new signings. In fact, Inox has already signed deals for 700 new and upcoming screens and is expecting to spend Rs 1,500 crore on capital expenditure alone.The Indian multiplex space is witnessing a lot of action in terms of expansion and consolidation with four big players – PVR, Inox, Carnival and Cinepolis.While PVR Cinemas is leading the sector in terms of number of screens as well as revenue, Inox has become more aggressive in the last three years.Earlier in March 2016 PVR had launched its first 15-screen multiplex in Noida, PVR Superplex, with an investment of Rs 47 crore. Superplex has nine normal screens, one IMAX screen, three Gold Class screens and one 4DX screen. It also has a special screen for kids, ‘Playhous’ that sports special seats, slide inside the auditorium and cartoons on the wall.Inox already has its premium brand Insignia and has a 10-screen deal with IMAX Corp. It is also tipped to be close on heels of signing a deal with Korean company CJ 4DPLEX for 4DX screens.

Source: ET

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