SBI,pharma giant take up space on lease in BKC bldg SBI,pharma giant take up space on lease in BKC bldg
SBI,pharma giant take up space on lease in BKC bldg SBI,pharma giant take up space on lease in BKC bldg
100Cr Over 5 Yrs For Developer
TIMES NEWS NETWORK
Mumbai: Swiss pharma giant Roche and State Bank of India recently concluded five-year lease rental deals with the Wadhwa Group for office space in the developers building,Capital,in Bandra-Kurla Complex (BKC).The two agreements will fetch the developer over Rs 100 crore in rent over five years.
The transactions come at a time when commercial leasing activity in the city has slowed down;experts say BKC faces almost 20% vacancy levels.This has forced developers to structure deals creatively to ensure the absorption of the current space by Grade A tenants.
Roche,for instance,was located in Lower Parel and required space to consolidate its operations with a scalable option.Traffic gridlocks and low infrastructure amenities in Parel made the pharma company decide on a shift to BKC.
The transaction was signed for 31,000 sq ft with a starting rent of Rs 228 per sq ft per month,which is 5%-10 % lower than prevailing rates.The decrease was compensated by way of an advance rent concept for every 15 months through the lease tenure and a 5% annual rent escalation.The deal will bring the landlord a rent of Rs 46.5 crore.
The developer also closed a deal with SBI for its Corporate Account Group (CAG) Office,which was located at Ballard Pier.SBI has taken 40,000 sq ft in Capital.The headline rent was Rs 275 per sq ft,including rent for the fit-outs.The lease is for five years with a five-year lock-in.The transaction structure also gave way to no escalation in the rent in the first five years and an increase of rent by a lump sum amount after five years,unlike the conventional form of 15% every three years.This deal would fetch the landlord over Rs 60 crore.
About 20 lakh sq ft is expected to come into the market by next year from just two buildings,Godrej BKC,a joint venture between Godrej Properties and Jet Airways,and One BKC of the Wadhwa Group.
Rentals have fallen in the range of Rs 240 to Rs 350 per sq ft a month compared to Rs 280 to Rs 400 per sq ft two years ago.These had touched as high as Rs 500 per sq ft during the peak period five years ago.
Last year,TOI had reported about an increasing number of firms leaving BKC for cheaper locations.
A Colliers International report on the city said most office occupiers moved towards equal or lower rents for superior office space.
100Cr Over 5 Yrs For Developer
TIMES NEWS NETWORK
Mumbai: Swiss pharma giant Roche and State Bank of India recently concluded five-year lease rental deals with the Wadhwa Group for office space in the developers building,Capital,in Bandra-Kurla Complex (BKC).The two agreements will fetch the developer over Rs 100 crore in rent over five years.
The transactions come at a time when commercial leasing activity in the city has slowed down;experts say BKC faces almost 20% vacancy levels.This has forced developers to structure deals creatively to ensure the absorption of the current space by Grade A tenants.
Roche,for instance,was located in Lower Parel and required space to consolidate its operations with a scalable option.Traffic gridlocks and low infrastructure amenities in Parel made the pharma company decide on a shift to BKC.
The transaction was signed for 31,000 sq ft with a starting rent of Rs 228 per sq ft per month,which is 5%-10 % lower than prevailing rates.The decrease was compensated by way of an advance rent concept for every 15 months through the lease tenure and a 5% annual rent escalation.The deal will bring the landlord a rent of Rs 46.5 crore.
The developer also closed a deal with SBI for its Corporate Account Group (CAG) Office,which was located at Ballard Pier.SBI has taken 40,000 sq ft in Capital.The headline rent was Rs 275 per sq ft,including rent for the fit-outs.The lease is for five years with a five-year lock-in.The transaction structure also gave way to no escalation in the rent in the first five years and an increase of rent by a lump sum amount after five years,unlike the conventional form of 15% every three years.This deal would fetch the landlord over Rs 60 crore.
About 20 lakh sq ft is expected to come into the market by next year from just two buildings,Godrej BKC,a joint venture between Godrej Properties and Jet Airways,and One BKC of the Wadhwa Group.
Rentals have fallen in the range of Rs 240 to Rs 350 per sq ft a month compared to Rs 280 to Rs 400 per sq ft two years ago.These had touched as high as Rs 500 per sq ft during the peak period five years ago.
Last year,TOI had reported about an increasing number of firms leaving BKC for cheaper locations.
A Colliers International report on the city said most office occupiers moved towards equal or lower rents for superior office space.
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