Polycab India buys office space in Mumbai’s Dadar for Rs 202 crore
Wire and cable manufacturer Polycab India has acquired a sea-view office spread over two floors at commercial tower The Ruby in central Mumbai’s Dadar locality for over Rs 202 crore in one of the few large outright deals for office spaces in the recent past.
The company’s newly acquired office spread over 55,400 sq ft space is in close proximity to its existing headquarters Polycab House in central Mumbai’s Mahim locality.
The deal, which has attracted stamp duty worth Rs 10 crore, will also provide the company exclusive access to 40 car parking slots.
The outright deal for the office property assumes significance in the backdrop of most such transactions increasingly being concluded on lease basis over the last few years. Most large outright office property acquisitions now involve institutional investors that operate the properties and lease them to occupiers.
While not many developers are offering such properties for strata sale, occupiers also prefer to lease offices in a large commercial complex that is managed by the institutions.
The transaction was executed on March 31 and was registered on April 4, showed the documents accessed through real estate analytics firm Propstack.
It could not be ascertained if the company is planning to shift its corporate office from the current location of Mogul Lane in Mahim, which is in close proximity to the new office.
Harresh Mehta, CMD of Rohan Lifescapes, the developer of the commercial tower confirmed the deal without elaborating details. ET’s email query and text messages to Polycab India’s Chairman & Managing Director Inder T. Jaisinghani remained unanswered until the time of going to press.
The 1.2-million-sq-ft development that counts EY India, ARCIL and Axis Bank as its key occupiers is a joint venture between Ruby Mills and Rohan Lifescapes. The project is the country’s tallest commercial tower.
In one of the rare outright transactions to be concluded in South Mumbai, Turner Morrison Building with 55,000 sq ft office space in Fort’s Kala Ghoda locality was acquired by the family of construction tycoon and billionaire Pallonji Mistry in 2019.
In an indication of higher momentum in office space leasing activity, the combined net office space absorption has risen to the highest level in the last two years, marred by the outbreak of Covid19 pandemic.
Across the top seven cities of India, net office leasing rose 113% from a year ago to 11.55 million sq ft in the first quarter of 2022, showed data from JLL India. However, the performance was similar to the last quarter due to lingering uncertainties surrounding the pandemic.
The technology sector continues to be the highest occupier segment in terms of market activity and was well supported by demand from flexible office space providers.
The flex segment leased 2.2 million sq ft of space during the quarter, the highest since the pandemic broke. This is also more than 50% of the total annual space leased by this segment in each of 2020 and 2021.