Edelweiss Securities leases 1 lakh sq ft in Adani Realty’s office tower in Mumbai

July 26, 2022
 Representative Image
Representative Image

Financial services firm Edelweiss Securities has picked up nearly 1 lakh sq ft of office space in Adani Realty’s commercial project Inspire BKC in Mumbai’s business district Bandra-Kurla Complex (BKC) through a long-term lease extending to nearly a decade, people with direct knowledge of the development told ET.

The firm is expected to pay total rentals worth over Rs 285 crore over the tenure of the lease based on monthly rentals of Rs 220 per sq ft, including common area maintenance charges.

The agreement includes a rent escalation clause with 15% upward revision every three years. The deal is structured with a lock-in period of three years.

“The lease transaction has been concluded recently and Edelweiss Securities will be soon shifting its corporate office to this new office from its existing premise in Vakola in Mumbai’s Santacruz suburb,” said one of the persons cited above.

The company has already started the fit-out work at the new office and is expected to shift in the next few months. To begin with, Edelweiss Securities will be shifting here with 400 employees while the new office can accommodate up to 600 employees.

With this lease transaction, the commercial project Inspire BKC with total 0.8 million sq ft office space is 75% occupied and it counts Novartis, Reliance Nippon Life Insurance, Ascendas First Space Development Management, and MUFG Bank among its key occupiers.

ET’s separate email queries to Edelweiss Securities and Adani Realty remained unanswered. Transaction advisor Cushman & Wakefield declined to comment for the story.

In an indication of strong momentum in office space leasing activity, the combined net office space absorption in the first quarter of 2022 has hit the highest level since the outbreak of the pandemic two years ago.

Across the top seven cities of India, net office leasing more than doubled from a year earlier to 11.55 million sq ft during January-March 2022, recent data from JLL India showed.

Office demand in suburban locations or secondary business districts is outpacing that in the central business districts across India’s major markets. According to experts, the trend that began with Mumbai, with the shift in preference from Nariman Point to Bandra-Kurla Complex over the past few years, has moved to other cities as well and is starting to reflect in the rentals commanded by these locations.

Despite the pandemic-driven work-from-home option available, the pre-leasing commitments during the last one year have remained intact and there has been very limited or almost no downsizing by large corporates, indicating the shift in occupier sentiment and greater certainty of business as the pandemic remains under control.

Leave a Comment