IFC leases 35,000 sq ft office space in Mumbai’s BKC from Brookfield

January 12, 2023
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Representative Image

The World Bank member, International Finance Corporation is expanding its presence in India and has picked up over 35,000 sq ft office space in Mumbai’s central business district Bandra-Kurla Complex (BKC) through a long-term lease of over 9 years.

The global institution that makes strategic investments and advisory interventions across India has leased the front-office space from an entity owned by the Brookfield Asset Management in the commercial tower Godrej BKC.

As per the lease terms, IFC will be paying rentals of nearly Rs 300 per sq ft a month for the office space taking its total rental pay out to over Rs 135 crore including the escalation of 5% every year.

The financial institution has two offices in India including one each in New Delhi’s Aerocity and G block of Bandra-Kurla Complex. Its existing office in BKC is relatively smaller and following this deal, IFC will move into the new bigger office in Godrej BKC.

“We are looking to increase our footprint and lending in India to $2.5-3 billion over the next two years, investing in newer areas including energy transition technology, circular economy, municipal finance, and logistics. India’s development goals require massive private financing and innovation, and IFC is committed to delivering this at scale,” IFC spokesperson said in response to ET’s email query.

Brookfield confirmed the deal without elaborating on the specifics of the lease.

“We are delighted to welcome IFC, a member of the World Bank Group to the building which has become a marquee address over the years. With this they will be present in two of our landmark properties across Delhi and Mumbai,” said Alok Aggarwal, Managing Director & CEO, Brookfield Properties.

Transaction advisor JLL India declined to comment for the story.

Currently, Brookfield owns two floors in this commercial tower developed by Godrej Properties. Brookfield had acquired these floors with a total area of 1.70 lakh sq ft from Jet Airways in an auction.

Both the floors are now completely leased and occupied by Brookfield Group entities, fintech company Yubi, formerly known as CredAvenue, PayPal and now IFC.

According to industry experts, in addition to these floors, Brookfield also holds right of first refusal for one more floor spread over 85,000 sq ft in this tower.

IFC aims to promote inclusive growth in South Asia by improving infrastructure and financial services, and by supporting the expansion of smaller businesses.

“India is IFC’s largest portfolio globally, having invested over $24 billion in more than 500 Indian companies since 1958. With a committed portfolio of $5.4 billion as of November 2022, we remain a long-term development partner for national priority areas, including climate financing, affordable housing, health care, disruptive technology, and entrepreneurship,” IFC spokesperson added.

In December, IFC extended a $400 million or over Rs 3,300 crore loan to India’s largest private mortgage lender HDFC with an objective to boost green housing in the affordable segment and support the country’s shift toward a more sustainable growth path, creating jobs and ensuring long-term business growth.

Since 2010, IFC has invested over $1.7 billion in India’s housing finance companies for on-lending to retail buyers of affordable housing and developers of affordable and green housing.

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