In a largest office lease transactions concluded this year the private-sector bank will be paying Rs 202.5 crore as rental for the office space over the first five-year tenure of the lease, including maintenance.
Mumbai–IDFC First Bank has picked up nearly 4.5 lakh sq. ft. of total office space spread into 18 floors in a commercial project Quantum in Hiranandani Estate in Thane from real estate developer Hiranandani Group on a long-term lease of 10 years including a renewal option.
The newly leased space will be used for expansion of operations and processing work in addition to consolidation by the IDFC First Bank
The 25-storey tower which got completed recently is now ready for fit out. The bank has entered into an agreement to lease this space from Roma Builders, one of the subsidiaries of Hiranandani Group, which counts Niranjan and his brother, Surendra Hiranandani, as directors.
The bank has leased the office space on the 5th to 13th floor, 15th to 17th floor, and 20th to 25th floor. The deal was clocked on August 30, and registered documents were accessed through real estate analytics firm Propstack.
Last year, IDFC First Bank leased an entire commercial building in Mumbai’s business district, Bandra-Kurla Complex (BKC) which housed Citibank India’s former headquarters, for a total tenure of 9 years. The agreement for this 10-storey property spread over nearly 1.30 lakh sq. ft. includes a rental rest clause with 15% escalation every three years, taking the total lease value to over Rs 450 crores over the total term.
Despite the pandemic-driven work-from-home and hybrid options, the office leasing commitments during the last one year have remained intact and have rather moved higher, as suggested by the actual leasing as well as pre-leasing commitments.
There has been very limited or almost no downsizing by large corporations, also indicating the shift in occupier sentiment and greater certainty of business as the pandemic now remains under control.