HDFC Bank has leased over 250,000 square feet of office space at K Raheja Corp-backed Mindspace Business Parks REIT’s business park in Navi Mumbai’s Airoli locality for 10 years, multiple people with direct knowledge of the development said.
The bank is planning to set up its technology and processing unit at the new office that will service its operations across the country.
The office tower, which is part of Mindspace business park’s first phase, is currently under development and is expected to be completed in the next 3-4 months when the bank will start its fit-out work.
“Both the parties have already signed the letter of intent (LoI) for the deal and the stamp duty has also been paid,” one person said.
Out of around one million sq ft under-construction space, the developer has so far leased 600,000 sq ft including the deal with HDFC Bank.
The bank had entered into negotiations and a preliminary agreement much before it announced the plan to merge with its group entity HDFC, the country’s largest private mortgage lender.
Mindspace Airoli West is a fully integrated business park spread over 50 acres and is part of the Mindspace Business Parks REIT portfolio. It has a total leasable area of 5.2 million sq ft with future development potential of additional 0.3 million sq ft, apart from 0.9 million sq ft under-construction area.
The park has so far completed the development of a total area of 3.9 million sq ft across six towers that count total 33 occupiers and tenants including Accenture, UBS, Atos India, CMA CGM, WorleyParsons and IDFC.
HDFC Bank and K Raheja Corp did not respond to ET’s queries until the time of going to press.
In an indication of higher momentum in office space leasing activity, the combined net office space absorption in the first quarter of 2022 hit the highest since the Covid-19 outbreak two years ago.
Across the top seven cities, net office leasing rose 113% from a year earlier to 11.55 million sq ft during January-March 2022, data from JLL India showed.
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.