Asset management firm SBI Funds Management has acquired office space measuring 67,870 sq ft in Parinee Cresenzo in Mumbai’s Bandra-Kurla Complex (BKC) for Rs 103 crore, according to real estate data platform Propstack.
The company did not respond to a query from Business Standard.
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The deal comes at a time when the Indian office market is witnessing significant demand.
A few days ago, Adar Poonawalla, CEO of Serum Institute of India and owner of Rising Sun Holdings, bought the first floor of Cerebrum IT Park in Pune for Rs 395 crore. According to recent reports, ICICI Prudential Asset Management Company has entered into a major deal for office space near Mumbai International Airport for Rs 315 crore. In another mega deal, investor Rekha Jhunjhunwala’s firm Kinnteista reportedly bought commercial space in BKC and Chandivali in Mumbai for Rs 740 crore. It is also learned that Red Fox IT Infra, a subsidiary of Redbrick Offices, has acquired several office spaces in Mumbai in a Rs 260 crore deal.
However, many of the office deals have been rented out. Real estate consultancy Cushman & Wakefield said in a recent report that leasing in the eight largest cities is expected to exceed 80 million square meters by 2024. This is driven by a combination of factors, including the continued growth of sectors such as IT and financial services.
Earlier this month, Deloitte Shared Services rented 80,000 m² of office space in Oberoi Commerz III, Mumbai. The lease is expected to take effect on November 1.
Morgan Stanley also recently leased 1 million square feet of office space in the same complex in Mumbai. The annual rental, which extends over a period of 10 years, is estimated at Rs 192 crore, with a security deposit of Rs 104.9 crore, according to reports.
In Bengaluru, real estate player RMZ Corporation recently leased 30,000 sq ft of office space to Chevron Global Technology and Services at RMZ Ecoworld 30-series. Chevron is expected to establish a center of excellence for engineering and innovation within this space.
In the first half of 2024 alone, leasing activity reached 41.9 million square feet, representing the highest rental volume recorded in the first half of any year to date, according to industry data. This figure represents 56 percent of the total gross lease volume (GLV) for 2023.
First publication: September 27, 2024 | 11:56 PM IST