Retail Giant Strengthens Asset Ownership Strategy; Invests Over ₹205 Crore in Commercial Real Estate Within Three Months

Retail major Avenue Supermarts Ltd (ASL), the operator of the DMart supermarket chain, has further strengthened its long-term expansion strategy by acquiring a premium commercial property in Kolshet, Thane, for ₹99.27 crore. The latest acquisition reflects the company's continued focus on owning strategically located retail assets, a business model that has differentiated DMart from many other organised retailers.

According to property registration documents, the transaction was officially registered on June 30, 2026. Avenue Supermarts purchased the ground, first, second and third floors, along with the upper basement parking, in Building No. 6 at Kolshet from Regency Shelters LLP.

The acquired property offers a built-up area of 6,530.86 square metres (approximately 70,298 sq ft). The company paid ₹6.95 crore in stamp duty, and the transaction includes 46 car parking spaces and 47 two-wheeler parking spaces, making it well-suited for a large-format retail outlet or commercial operations.

More Than ₹205 Crore Invested in Just Three Months

The Thane acquisition comes shortly after Avenue Supermarts purchased a 1.70 lakh sq ft commercial building in Panathur, Bengaluru, for ₹106.2 crore in April 2026.

With these two back-to-back transactions, the company has invested over ₹205 crore in commercial real estate within a span of just three months. The aggressive pace of acquisitions indicates management's confidence in India's long-term consumption story and its commitment to expanding DMart's physical retail network through owned properties.

The Bengaluru property is strategically located in Panathur, one of East Bengaluru's fastest-growing commercial corridors, close to the Outer Ring Road, IT parks, and large residential developments.

Why DMart Prefers Owning Its Stores

Unlike many organised retail chains that primarily lease commercial spaces, DMart has consistently followed an asset-heavy expansion model. The company prefers purchasing strategically located retail properties whenever economically viable.

This strategy provides several long-term advantages:

• Lower occupancy costs over time.

• Protection from rental inflation.

• Greater operational flexibility.

• Strong appreciation potential of commercial real estate.

• Better control over store layouts and long-term business planning.

The ownership model has been one of the defining characteristics of DMart's highly efficient business strategy, contributing to its industry-leading cost structure and stable profitability.

Consistent Real Estate Acquisition Strategy

The latest purchase adds to a series of strategic acquisitions made by Avenue Supermarts over the past few years.

Some notable transactions include:

• ₹88.25 crore acquisition of nearly 67,400 sq ft retail space in Varthur Hobli, Bengaluru (2021).

• ₹71.5 crore purchase of a commercial building in Goregaon West, Mumbai (2021).

• ₹88.74 crore acquisition of three floors of retail space in Kandivali West, Mumbai (2023).

• ₹117 crore purchase of a 52,765 sq ft land parcel in Chandivali, Andheri East (2024).

These acquisitions demonstrate the company's disciplined approach to securing prime retail locations in high-growth urban markets.

Kolshet Emerging as a High-Growth Retail Destination

The newly acquired property is located in Kolshet, Thane, a rapidly developing residential and commercial corridor benefiting from improving road connectivity, expanding housing projects, and increasing consumer demand.

With strong infrastructure development and rising population density, Kolshet has become an attractive destination for organised retail chains looking to establish large-format stores and strengthen their presence in the Mumbai Metropolitan Region (MMR).

Industry experts believe such locations are likely to witness sustained commercial activity over the coming years, making them valuable long-term assets.

What It Means for Investors

The latest acquisition underlines Avenue Supermarts' long-term capital allocation philosophy. Rather than aggressively expanding through leased stores alone, the company continues to invest in owned assets that can generate operational efficiencies and create long-term shareholder value.

While property acquisitions involve significant upfront capital expenditure, they reduce recurring rental liabilities and provide strategic flexibility over decades. The move also signals management's confidence in continued demand growth for organised retail across India's major urban centres.

As India's consumption story continues to strengthen, Avenue Supermarts' disciplined expansion through ownership of premium commercial properties is expected to remain a key competitive advantage, supporting the company's long-term growth strategy.