Kotak Mahindra Life Insurance leases 1.5 lakh sq ft space in Tata Realty’s tower
Kotak Mahindra Life Insurance Company has picked up over 1.5 lakh sq ft office space in Tata Realty & Infrastructure Ltd’s information technology park TRIL IT 4 in Mumbai’s western suburb of Malad through a long-term lease of over 9 years, said persons with direct knowledge of the development.
The company will be paying rentals of Rs 100 per sq ft a month, taking its total pay-out to Rs 162 crores over the tenure of the lease excluding the rental escalations. The agreement includes a clause to increase rentals 15% after every three years.
“The company has picked up the office space through two separate transactions and the latest transaction was registered on Friday,” said one of the persons mentioned above.
The leased office space will be utilised by the company to accommodate its processing operations. TRIL IT 4 already counts Tata Consultancy Services and Accenture among its key occupiers.
Kotak Mahindra had acquired an entire commercial tower in this vicinity a few years ago and has also leased 400,000 sq ft more in Thane over the last couple of years as part of its growth plan and to house its bank and life insurance operations.
ET’s separate email queries to Kotak Mahindra Life Insurance Company and Tata Realty & Infrastructure Ltd remained unanswered until the time of going to press. Transaction advisor property consultant Cushman & Wakefield declined to comment for the story.
Kotak Mahindra Group owns two key properties in Mumbai’s business district Bandra-Kurla Complex, 27 BKC and 12 BKC. Of this, 12 BKC has come under its fold following the acquisition of ING Vysya Bank in 2014. The group also owns a commercial tower Kotak Infinity in Mumbai’s Malad suburb in addition to its several other offices.
Kotak Mahindra Life Insurance Company Ltd is a 100% owned subsidiary of Kotak Mahindra Bank. It is one of the fastest growing insurance companies in India, covering over 45.4 million lives nationwide as on January end.
The insurance sector has emerged as one the fastest growing businesses in India with a conducive regulatory environment and government support. The sector has been witnessing a rising number of product innovations, vibrant distribution channels and alliances. The increasing outreach of the banking sector and capital markets is also reflected in the insurance and pension sectors.
Mid-sized and large deals for office spaces have continued to gather momentum as the recovery in commercial real estate post Covid19 pandemic is getting broad based as indicated by the rising number of leases and outright transactions across segments and key property markets.