Hinduja Realty Ventures leases three floors in Tata Communications’ office tower in Mumbai
Representative ImageThe Hinduja Group’s flagship real estate investment and development arm Hinduja Realty Ventures has picked up office properties spread over three floors in Tata Communications‘ commercial tower in Mumbai’s business district Bandra-Kurla Complex (BKC) through a long-term lease of over five years.
The company will be paying lease rentals of Rs 250 per sq ft a month for nearly 50,000 sq ft office space on first, second and third floor of the tower. The company will be paying monthly rentals of Rs 1.15 crore. It has already paid nearly Rs 7 crore as an upfront security deposit for the transaction. The agreement includes a clause to escalate rentals by 5% every year.
As part of the deal, Hinduja Realty Ventures will also get exclusive access to a total 27 car parking slots in the commercial tower along with the office space in one of the wings of the complex, showed the documents accessed through Propstack.
The newly leased office space will be used by a number of companies of the Hinduja Group in line with its expansion plans. The lease will have a lock-in period of three years
Prior to this lease deal, the first seven floors of tower C were leased out to WeWork India for a period of one year. Earlier in May, Tata Communications secured permission from the Mumbai Metropolitan Region Development Authority (MMRDA) to terminate the contract with WeWork India and sign the deal with the Hinduja Group for three floors.
Hinduja Group, through its various companies, owns land parcels across key cities in India and is looking to aggregate these real estate assets under Hinduja Realty Ventures. The company is aiming to unlock value of these assets through integrated developments and to maximise its returns.
In its first phase of business expansion, Hinduja Realty Ventures is planning to focus on the group’s portfolio of FDI compliant properties, in Bengaluru and Hyderabad. Subsequently, it intends to acquire new assets, plots, and sites from third parties for development.
ET’s email query to Hinduja Group and Tata Communications remained unanswered.
Deal activity in the office space segment has so far been witnessing steady growth despite the forecast of a recession in western markets and its likely impact on Indian commercial real estate.
In addition to global entities, Indian large corporations are concluding the lease and outright transactions for office spaces and continue to actively scout for large offices to support their consolidation and expansion plans.
In the largest commercial real estate transaction this year, Bank of America recently leased an entire tower with office space spread over nearly 1 million sq ft in Pune’s Kharadi locality for nine years from realty developer Prestige Group.
In April, Deloitte Consulting India leased over 156,000 sq ft for 10 years at the International Tech Park, also in Pune’s Kharadi locality, as part of its India expansion plan.
Prior to that, Germany-based research publisher Springer Nature leased more than 110,000 sq ft at Gera Commerzone information technology special economic zone in the Kharadi locality for 10 years.
