MA R K E T B E AT Retail Q1 2021

Improved leasing activity in Q1 2021 Leasing activity in Mumbai malls continued to witness gradual improvement during the first quarter of 2021. All the prominent superior malls have witnessed improved leasing activity, mainly on the back of prevailing tenants renewing their existing footprints across major malls during the q uarter. Retailers from fashion, F&B, hypermarket/supermarket and consumer electronics segments were the major contributors towards leasing activity. Some of the major transactions concluded during the quarter included Citroen inaugurating its first showroom in Mumbai at Atria Mall – , Latt Liv at Maxus Mall – Mira Road and Starbucks at Seawoods Grand Central 9.17% MALL VACANCY IN Q1 2021 Phase II – Seawoods, . A number of prominent main streets also witnessed higher leasing activity across retail catego ries such as apparel, consumer durables, jewellery, watches & accessories, automobile and F&B. Major transactions recorded were Louis Phillipe and Allen Sol ly at Kharghar, Unicorn at Goregaon, Reliance Jewels at Vashi, Skoda at Worli, Barista at West and Starbucks at Kandivali. As Mumbai started re -witnessing increased level of infection towards end of MALL SUPPLY EXPECTED the quarter, we expect overall leasing activity to remain muted in the short term. Also, the retail sector is likely to get a ffected by the government’s new Covid 3.02 msf BY 2023 guidelines which allows theatres (single screen/multiplex) and restaurants to operate only at 50% capacity within stipulated time limits. Such restrictions are likely to affect mall footfalls and the number of visitors are likely to remain muted. This is bound to slow down the recovery in mall leasing activity as well as impact the retail sales volumes in the short term. Leasing activity is expected to gain momentum by second half of 2021 or by early next year on the back of faster vaccinations and improvement VACANCY % IN SUPERIOR in consumer and business sentiments. Additionally, noteworthy pre-commitments being witnessed in two new upcoming malls in BKC, one of which is expected to be 1.18% GRADE MALLS completed in Q2 2021 and the other in H1 2022 is expected to further push up mall space absorption and leasing activity by H2 2021.

Marginal rise in mall vacancy; stable rental across malls and main streets City-wide mall vacancy rose marginally to 9.17% at the end of the first quarter with fresh leasing activity being recorded only in select superior malls and few retailer exits in some of the average malls. However, healthy demand for quality mall space remains intact with a major proportion of superior grade malls in the city continuing to witness low single digit vacancy rates despite the ongoing Covid-related business uncertainty. Quoted rentals across both malls and main streets at prominent locations remained stable on a quarterly basis. Rental discounts are being phased out gradually given that mall developers/landlords ha ve their own financial obligations and have been accommodative towards retailers since the onset of the pandemic. However, a number of retailers have continued to negotiate for rental incentives largely in the form ECONOMIC INDICATORS Q1 2021 of revenue share agreements. Rising Covid cases in the city, new operational restrictions on malls, lower footfalls and sales activity are resulting in higher demand for incentives from retailers. Going forward, average malls could witness more exits and a number of brands, especially in the F&B segment, are likely to adapt the 2022 omnichannel business model to a greater extent to drive their business. 2020 2021 Forecast GDP Upcoming mall supply might get deferred Supply of around 3.02 msf is at various stages of development in the city with two prominent malls at BKC and Vasai expected to be completed in Q2 and Q4 2021 Growth -7.70% 10.2% 7.0% respectively. While the construction sector has witnessed near complete recovery over the past couple of quarters and develop ers have been looking to meet the completion schedules of ongoing projects, resurgence of the pandemic could pose a challenge. The government has imposed a number of restrictions in recent weeks CPI Growth 6.1% 5.0% 4.3% including night curfew and weekend lockdown though construction sites have been allowed to operate if the developer provides an accommodation facility for the workers. While the business outlook is likely to stabilize over the next few quarters with the government expediting vaccinations and recovery in consumer sentiments, the near- Consumer term uncertainty could result in slight deferral of the scheduled upcoming supply. Spending -8.5% 6.3% 7.2% MALL SUPPLY / VACANCY CATEGORY-WISE STOCK / VACANCY Govt. Final Expenditure 5.7% 10.8% 9.7% 1,500 20.0% 10,000 30.0% Growth 1,000 15.0% Source: Oxford Economics, RBI, IMF 500 - 10.0% 20.0% (500) 5,000 5.0% (1,000) 10.0% (1,500) 0.0% 2016 2017 2018 2019 2020 Q1 2021 F - 0.0% 2021 Superior Malls Good Malls Average Malls MALL SUPPLY ('000 sf) VACANCY (%) MALL INVENTORY ('000 sf) VACANCY (%) MA R K E T B E AT MUMBAI Retail Q1 2021 MARKET STATISTICS Q-O-Q Y-O-Y INR SF/MTH EURO SF/YR US$ SF/YR PRIME RETAIL RENTS – MAIN STREETS# CHANGE CHANGE Linking Road 760 104 125 0.0% -5.0% Kemps Corner / 410 56 68 0.0% -4.7% Causeway 570 78 94 0.0% -5.0% Fountain 380 52 63 0.0% -5.0% Lokhandwala Andheri 380 52 63 0.0% -5.0% Borivali LT Road 380 52 63 0.0% -5.0% Chembur 370 51 61 0.0% -5.1% Vashi 340 47 56 0.0% -5.6% Thane 245 34 40 0.0% -5.8% Q-O-Q Y-O-Y PRIME RETAIL RENTS – MALLS# INR SF/MTH EURO SF/YR US$ SF/YR CHANGE CHANGE Lower Parel 840 115 138 0.0% -5.6% Link Road – Andheri West 385 53 63 0.0% -6.1% Malad 440 60 73 0.0% -6.4% Goregaon 500 68 82 0.0% -4.8% Kandivali 185 25 30 0.0% -7.5% Kurla 170 23 28 0.0% -5.6% Ghatkopar 240 33 40 0.0% -7.7% Bhandup – Mulund 115 16 19 0.0% -8.0% Vashi – Seawoods 340 47 56 0.0% -5.6% Thane 300 41 49 0.0% -3.2% Note: Asking rent (INR/sf/month) on carpet area of ground floor Vanilla stores is quoted US$ = INR 72.8 AND € = INR 87.5 Note: The above mentioned discounted rentals being offered in malls is a limited period trend to support the retail business in times of sluggish demand. Even with a downward pressure on rentals, such measures are likely to be re-calibrated to normal levels when business scenario improves for the better. We shall continue to monitor the retail rental scenario in the coming quarters with focus on the Ketan Bhingarde prevailing transaction momentum in the market. Manager, Research Services SIGNIFICANT LEASING TRANSACTIONS Q1 2021 +91 22 67715555 /[email protected] PROPERTY LOCATION TENANT SF TYPE Kapil Kanala Seawoods Grand Central Vashi Big Bazar 41,863 Renewal Senior Associate Director, Research Services +91 40 40405555 /[email protected] Palladium Mall Lower Parel Zara 22,787 Renewal Atria Mall Worli Citroen 13,000 Fresh Lease cushmanwakefield.com

Highstreet Phoenix Lower Parel Croma 10,920 Renewal A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION Main Street – Koparkhairane Navi Mumbai Mr. DIY 10,000 Fresh Lease Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and ow ners. Cushman & Wakefield is among the largest real estate services firms w ith SIGNIFICANT PROJECTS UNDER CONSTRUCTION approximately 51,000 employees in 400 offices and 70 countries. In 2018, the PROPERTY LOCATION SF COMPLETION DATE firm had revenue of $8.2 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. Jio World Drive BKC 450,000 Q2 2021 ©2021 Cushman & Wakefield. All rights reserved. The information contained within this Jio World Plaza BKC 475,000 Q2 2022 report is gathered from multiple sources believed to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as Oberoi Sky City Mall Borivali East 1,000,000 Q4 2022 to its accuracy.