MUMBAI: In one of the largest office leasing transactions so far this year, IDFC Bank has picked up an entire office building spread over 1.80 lakh sq ft on lease in K Raheja Corp’s mixed-use development Mindspace in Navi Mumbai’s Juinagar locality, said two persons familiar with the development.
The lease is for five years with the option to renew it for another four years. The bank will be paying lease rental of about Rs 55 per sq ft a month, taking its payout to nearly Rs 60 crore over the next five years.
IDFC Bank will be using the space to set up a back office hub to serve its banking operations across the country. As part of its total space take up, the bank is expected to start its operations on the first phase spread over 1 lakh sq ft in a month’s time. ET’s separate email queries to both IDFC Bank and K Raheja Corp remained unanswered until the time of going to press.
K Raheja Corp is set to develop a total of 7 million sq ft of mixed-use project Mindspace in Juinagar with an investment of over Rs 2,500 crore in five-six years. The proposed development will include a special economic zone, a software technology park and other components such as residential properties, depending on approvals.
Last week, Swiss bank UBS had set up its office on part of a recently leased 4 lakh sq ft space in K Raheja Corp’s Mindspace complex in Navi Mumbai’s Airoli locality.
Maharashtra Chief Minister Devendra Fadnavis inaugurated the NYSE-listed multinational bank’s new office, which will provide IT infrastructure support to UBS’ international operations and also house its global service centre hub.
This is the first instance of an international bank setting up its service centre in Navi Mumbai. Currently, three large domestic banks, including State Bank of India and Axis Bank, have their back office units in Mumbai’s satellite city.
Navi Mumbai and its peripheral areas are emerging as a destination for IT and ITeS companies looking for office space to expand or consolidate operations. Competitive real estate costs, an upcoming international airport and improved connectivity to Mumbai are some of the advantages of being in Navi Mumbai.
Walls N Roof Comment : The commercial sector has been witnessing a significant growth. From co working spaces to Tier II and metro cities gathering momentum the sector has set the ball rolling. The IDFC transaction in the commercial space is one of the largest transactions witnessed so far. BKC, Worli and Lower Parel have been business hubs for a very long time. Focus has been shifting to areas like Navi Mumbai, Airoli and Thane. Navi Mumbai has several developments in the pipeline in the commercial sector. The significant push to these areas has been possible because of the phenomenal infrastructural development and connectivity to various parts of the city. With the proposed International airport Navi Mumbai will emerge as a commercial hub soon.