L&T sells three pre-leased floors in Powai office tower to National Realty for Rs 81 crore

March 12, 2023
L&T sells three pre-leased floors in Powai office tower to National Realty for Rs 81 crore

Engineering and construction major Larsen & Toubro sold pre-leased office space spread across three floors in L&T Business Park-TC-IV in Mumbai’s Powai suburb to National Realty for nearly Rs 81 crore.

The company sold this office with nearly 37,527 sq ft carpet area immediately after leasing it to CitiusTech Healthcare Technology at starting annual rent of Rs 7.40 crore.

National Realty, earlier known as National Leasing, is a real estate investment company engaged in the business of acquiring properties, mainly commercial, and leasing the same to corporates and banks.

The buyer has paid stamp duty of Rs 4.85 crore for acquisition of the 9th, 10th and 11th floor of the commercial tower from L&T.

Along with these three floors, National Realty has also received exclusive access to a total 54 car parking slots as part of the deal that was registered on Friday, showed the documents accessed through CRE Matrix, a real estate data analytics firm.

Prior to this, L&T leased this office space to CitiusTech Healthcare for a total long-term tenure of 10 years. CitiusTech Healthcare has paid a security deposit worth nearly Rs 3.70 crore for this lease. The lessor will be paying starting monthly rentals of Rs 61.65 lakh and the agreement includes a clause to escalate the same by 5% in the second year and thereafter 4.2% every year until the lease term comes to an end.

The lease term commences from December 26, 2022 and CitiusTech Healthcare will get a rent-free period of first four months from commencement date as part of the agreement that was registered in February.

With the sale transaction and transfer of control, National Realty will get the rental income from this pre-leased asset.

ET’s separate email queries to L&T, National Realty and CitiusTech Healthcare remained unanswered till the time of going to press.

Demand for office spaces has made a strong comeback across key property markets. With sustained growth in demand for grade-A commercial office space, experts believe the investment momentum in the Indian real estate sector will continue to rise.

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.

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.

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