Waterfield Advisors leases office space at Avighna House in Mumbai at record rentals

November 6, 2022
 File Photo
File Photo

Waterfield Advisors, an independent multi-family office and wealth advisory firm, has picked up a sea-view front office spread over an entire floor in a commercial tower Avighna House in plush Worli locality of the country’s commercial capital Mumbai at record monthly lease rentals of Rs 520 per sq ft.

The firm has leased over 6,150 sq ft usable office space in the tower for a total term of five years. The deal assumes significance in the backdrop of the record per sq ft rentals attracted by any office property in the country’s most expensive market of Mumbai after a long gap.

Prior to this, in 2007, Barclays Bank had leased 15,000 sq ft office space at commercial tower CeeJay House in Worli at Rs 725 per sq ft a month. Avighna House is also located in proximity to CeeJay House on Dr. Annie Besant Road.

Post 2008, the commercial property rentals had eased owing to improved supply of office stock in the country’s financial capital and, also due to moderation in demand for front offices from international banking groups following the global financial crisis. However, the demand has seen a steady growth since then.

Nishant Agarwal, Managing Director, Avighna India confirmed the deal without elaborating details.

“For our next phase of growth, we were looking for an office address that matches up with the pedigree of Ultra HNIs and family offices we serve. This property, Avighna House, fit the bill completely in terms of experience, luxury and location,” said Kartik Kini, COO, Waterfield Advisors.

Worli has been known for housing offices of several financial and investment banking world majors including Credit Suisse, Lehman Brothers, Societe Generale and Hypo Bank.

While Mumbai has not witnessed a deal at these rates in the recent past, these kinds of rentals were earlier witnessed in the business district of Bandra-Kurla Complex.

“Central Mumbai especially Worli micro-market has been emerging as a credible option for financial institutions and private equity majors. With no major supply anticipated in BKC for the next three years, Worli will continue to see traction of deals from corporate office occupiers,” Gautam Saraf, MD-Mumbai and new business at Cushman & Wakefield.

On Friday itself, ET reported that American multinational investment management and financial services company Morgan Stanley also leased a sea-view front office space spread over two floors in a commercial tower in Mumbai’s plush Worli locality for over 9 years.

Waterfield Advisors will be paying total rentals of nearly Rs 20 crore for the office space through the tenure of the lease. The monthly rentals will see a 4.75% escalation and the deposit amount will also see a similar rise every 12 months. In the first year, the upfront deposit was set at Rs 1.92 crore.

Established in 2011 by Soumya Rajan, Waterfield advises on over $4.3 billion of assets on behalf of several prominent Indian business families through its seven offices across India.

The recovery in commercial real estate, especially office spaces, after the Covid19 pandemic is getting broad-based as indicated by the rising number of small and mid-size leases and outright transactions across segments and key property markets.

The commercial office segment, which was significantly impacted by the pandemic, has made a strong comeback in the last 3-4 quarters, supported by strong economic growth, increased hiring, and a return to the office trend, keeping the office sector buoyant.

The Indian office market grew substantially and delivered a strong performance in the first half of 2022. Office transactions recorded at 25.3 million sq ft, a 107% on-year growth, indicated the potential of the market on the back of a waning pandemic and the promise of a sustained economic recovery.

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