This is one of the largest office lease transactions concluded this year. The private-sector bank will be paying Rs 202.5 crore as rental for the office space over the first five-year tenure of the lease, including maintenance.
IDFC First Bank is planning to utilise the newly leased space for expansion of its operations and processing work in addition to consolidation.
The 25-storey tower has been completed recently and is now ready for fit out. The bank has entered into an agreement to lease this space from Roma Builders, one of the subsidiaries of Hiranandani Group, which counts Niranjan and his brother, Surendra Hiranandani, as directors.
While both the brothers are running separate real estate companies and developing projects, they also continue to own many real estate projects and properties jointly.
The bank has leased the office space on the 5th to 13th floor, 15th to 17th floor, and 20th to 25th floor, and the deal for the same was registered on August 30, showed the documents accessed through real estate analytics firm Propstack.
Last year, IDFC First Bank leased an entire commercial building—Citibank India’s erstwhile headquarters in Mumbai’s business district, Bandra-Kurla Complex (BKC) for a total tenure of 9 years. The agreement for this 10-storey property spread over nearly 1.30 lakh sq ft includes a rental rest clause with 15% escalation every three years, taking the total lease value to over Rs 450 crores over the total term.
ET’s email query to IDFC First Bank and House of Hiranandani remained unanswered until the time of going to press.
Despite the pandemic-driven work-from-home and hybrid options, the office leasing commitments during the last one year have remained intact and have rather moved higher, as suggested by the actual leasing as well as pre-leasing commitments.
There has been very limited or almost no downsizing by large corporations, also indicating the shift in occupier sentiment and greater certainty of business as the pandemic now remains under control.
In an indication of sustained demand and absorption of office space, last week Mahindra & Mahindra Financial Services leased nearly 2.75 lakh sq ft of office space in Piramal Realty’s commercial complex, Agastya Corporate Park, in central Mumbai’s Kurla locality. The company will be paying a monthly rental of Rs 2.50 crore, taking the total pay out to around Rs 270 crore.
Prior to that, financial services firm Edelweiss Securities picked up nearly 1 lakh sq ft of office space in Adani Realty’s commercial project Inspire BKC in the business district through a long-term lease of over 9 years. The rental pay out in this deal will be Rs 285 crore over the total tenure of the deal and is the largest office space transaction this year.
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