MUMBAI: Tata Communications has picked up 60,000 sq ft of office space on lease at Parinee Crescenzo in Mumbai’s Bandra-Kurla Complex, said two persons familiar with the development, making it the largest office space transaction in the alternative business district so far this financial year.
“The company has picked up the entire 15th floor in this 20-storey building through this deal for a total tenure of five years,” said one of the persons mentioned above. An email query to Tata Communications remained unanswered till press-time. Transaction advisor Knight Frank India declined to comment on the story.
As per the terms of the deal, Tata Communications will be paying monthly rentals of 215 per sq ft for the initial three years of the total tenure, and the lease rentals will be reset for the next two years after that. Tata Communications will also get a total of 60 car parks as part of the deal.
The corporate office in this existing centre will be shifted to the newly leased office in Parinee Crescenzo. The company also has several other data centres across the country, including in key cities such as Chennai, Bengaluru, Delhi and Pune. Tata Communications already has a large office complex in BKC, which will be partly vacated to make room for a big data centre to support the company’s fast growing data business. This office had come into Tata Commutations control following its complete acquisition of VSNL in 2008.
“BKC is the only planned business district in Mumbai and therefore has the best infrastructure and office spaces in the city. We have been able to attract good tenant profile at Parinee Crescenzo, including the newest client Tata Communications. The deal has been concluded recently,” said Vipul Shah, MD, Parinee Group, while confirming the transaction. However, he declined to share details of the transaction.
In late 2008, Standard Chartered Bank had bought 300,000 sq ft spread over five floors in this building, while it was under construction. The bank had then paid about Rs 33,000 per sq ft to pick up space for setting up its corporate office here.
Australian Trade Commission, SBI Mutual Fund, Signet Pharma and Estee Lauder are among the other prominent tenants in this building.
Recent flow of transactions indicate that the commercial property market in the country’s commercial capital continues to flourish. Last week, Teva Pharmaceutical Industries leased 1.25 lakh sq ft office space on lease in Oberoi Realty’s commercial complex Commerz II in the Goregaon suburb of Mumbai. Low vacancy levels across office complexes and lack of new ready-to-move-in commercial space are contributing to the rents firming up.
Since 2015, office space absorption across major Indian property markets has been growing on the back of a combination of lower rents and a positive economic outlook. After witnessing sub-30 million sq ft of net absorption for three years in a row from 2012 to 2014, 2015 saw absorption rise significantly to above 35 million sq ft.
Credits ET Realty