Bank of America leases over one lakh sq ft office space in Mumbai

March 22, 2024

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Bank of America has picked up additional office spread over nearly 1 lakh sq ft in an information technology park Mindspace in Mumbai’s Malad west suburb, taking its total office space to 2.70 lakh sq ft in this tower, making it their one of the biggest centres in India and the largest in Mumbai, said persons with direct knowledge of the development.

This entire facility is expected to house more than 3,000 employees spanning across different verticals of operations and technology. Bank of America has entered a long-term lease of 9 years and will be paying a total rental of over Rs 120 crore through this entire term.

“The transaction was registered a few days ago. The location has been selected due to proximity to availability of relevant talent. Western suburbs have the most dense concentration of relevant talent in Mumbai,” said one of the persons mentioned above.

The operational Metro lines have played a key factor in establishing Mumbai’s western suburbs as the global captive centre hub with almost all major banks having their centres here. A total of 6 million sq ft is occupied by multinational banks for their GCCs in this region.

ET’s email query to Bank of America remained unanswered until the time of going to press, while transaction advisor JLL India declined to comment for the story.

The American multinational investment bank and financial services company has leased this space through its 100% subsidiary BA Continuum India. The bank had started this Global Business Services Unit in 2004 and currently operates out of five cities in the country including Mumbai, Hyderabad, Chennai, Gurgaon, and Gujarat’s Gift City.

BA Continuum India handles technology, application development, legal, compliance, tax support services that cater to its global operations.

The Indian office sector has been seeing sustained growth in demand despite the global sluggishness, and the performance is seen as a testament to the strong fundamentals of demand and the absence of any lasting effects of the global headwinds.

Last week, ET reported that ICICI Prudential Life Insurance Company has picked up 252,000 sq ft of office space in this IT park Mindspace, for what will be its largest back-office facility.

The insurance major has leased this office space–spread across four floors–for five years through a structured deal and this is one of the largest office lease transactions concluded in the country so far this year.

Net absorption in India’s top seven office markets breached the 40 million sq ft mark in 2023 to touch 41.97 million sq ft, showed data from JLL India. This not only marked a new post-Covid milestone but also positioned it as the second highest annual absorption, trailing only the levels recorded in 2019.

  • Published On Mar 22, 2024 at 03:33 PM IST

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