Hindalco leases 50,000 sq ft office space in Blackstone’s Mumbai tower

February 10, 2023
 Representative Image
Representative Image

Aditya Birla Group company Hindalco Industries has picked up an entire floor spread over 50,000 sq ft office space in Blackstone Group entity Nucleus Office Parkscommercial complex One International Center in Mumbai’s business district Lower Parel on a long-term lease of five years, said persons with direct knowledge of the development.

The company will be paying total rent of nearly Rs 54 crore for these five years including a 15% rent escalation after the first 36 months. The agreement provides an option to extend the term of the lease by additional five years.

Hindalco Industries’ headquarters is currently housed in Birla Centurion, a standalone commercial tower on Worli’ Budhkar Marg close to the new premises.

“The company’s senior officials are expected to operate from this new office, where fit out work is being carried out right now,” said one of the persons mentioned above.

The aluminium and copper manufacturing company is looking to consolidate its various offices and also expand the capacity in the new office ensuring ease of connectivity for their employees while keeping the new office in close proximity to the Birla HQ in the vicinity.

The Aditya Birla Group’s different entities including Aditya Birla Finance, Aditya Birla Capital, Aditya Birla ARC already occupy offices in Nucleus Office Parks’ One World Center, a block away from One International Center. Of these, Aditya Birla Capital’s headquarters is located in One World Center.

Hindalco has picked up the 21st floor in T4, a 22-storeyed and 7-lakh-sq-ft front facing new tower that is part of One International Centre in Lower Parel.

One International Centre already houses headquarters of large global and Indian entities including Deloitte that occupies close to 2.30 lakh sq ft, Mondelez’s nearly 70,000 sq ft and Franklin Templeton’s 40,000 sq ft offices.

Both Hindalco Industries and Nucleus Office Parks declined to comment on the story.

Nucleus office parks, the operating platform for offices fully owned by the Blackstone Group in India. It manages the largest commercial real estate holding of around 4.4 million sq ft in Lower Parel business district.

Demand for office spaces has made a strong comeback across the key property markets.

Top office markets of India registered total gross leasing activities of 51.6 million sq ft in 2022 which was 36% higher over the last year’s performance. This was historically the second-best year for office transaction volume with the peak achieved in 2019, showed recent data from Knight Frank India.

Of the total office space absorption, Mumbai recorded 6.4 million sq ft during the year, up 69%. In terms of new supply, the country’s commercial capital has witnessed completions of just 1 million sq ft in the second half of 2022. Lower Parel itself has also witnessed robust leasing momentum over the past year.

Leave a Comment