HDFC Bank has picked up office space spread over nearly 80,000 lakh sq ft on lease in a commercial project Himalaya Elanza at Ahmedabad’s RTO Circle. The private sector bank has leased the office space for a long-term tenure of five years and will be paying rentals of nearly Rs 5 crore per year.
The deal assumes significance given that the Mumbai-headquartered bank is picking up this size of office space in one of the key tier II cities.
The bank is likely to utilise the space to set up its processing unit and customer service operations here.
“This is our first transaction with HDFC Bank and we would like to build this relationship further. With this deal, around 85% of this project is now occupied,” said Kamlesh Modi, MD, Himalaya Buildcon.
The commercial tower with total 3.5 lakh sq ft office space is built by Ahmedabad-based real estate developer Himalaya Buildcon. The project counts Ahmedabad Urban Development Authority (AUDA), the RTO Department of Gujarat government, Indian Bank, Suzuki Bikes, Yamaha Bikes, Patanjali and also a 113-room hotel Central Inn Hotel as its key occupiers.
“Identifying and acting on remarkably increased activity in the BFSI sector post Covid-19, HDFC Bank Ltd. has taken up this prime office space in the commercial tower of Himalaya Elanza in Ahmedabad to deploy full-fledged back-office services and employee training activities. Considering how rapidly Ahmedabad is fortifying its reputation as an important economic hub, the timing is more than apt and the location is ideal,” said Bappaditya Basu, Chief Business Officer, ANAROCK Commercial, which acted as the transaction adviser.
ET’s email queries to HDFC Bank remained unanswered.
Following the outbreak of Covid-19 pandemic, activity in commercial real estate of tier 2 has been on the rise. This is attributed to the general affordability, availability of right talent, stability in prices, availability of more options and relatively lower competition for properties.
The combination of these factors has attracted business entities, occupiers and investors from the biggest cities and metros to tier II cities. The companies and investors are now looking to invest in tier-II commercial real estate for their expansion as they can also benefit by contributing to the economic growth of these centers.
There has been a shift from large, consolidated working space and headquarters to the rise of work-from-home, hybrid work model, satellite offices and flexible workspace in the past two years owing to pandemic related mobility restrictions.
While the concept of work-from-home ensured the seamless continuity in businesses during the lockdown, the work flexibility provided the employers a scope for accomplishing work remotely with the help of technology as against the earlier options.