The total lease tenure is nine years with a clause of rental reset with 15% appreciation every three years.
MUMBAI: Registry and financial services provider Link Intime India has picked up nearly 60,000 sq ft office space in commercial complex 247 Park — now owned by Blackstone Group — in the Vikhroli suburb of Mumbai on lease, said two persons familiar with the development.
The total lease tenure is nine years with a clause of rental reset with 15% appreciation every three years. The company will be paying Rs 115 rental per sq ft a month, taking the annual lease to Rs 9 crore.
“The deal is concluded and was registered recently. Link Intime will start operating from this space in the next few months,” said a person mentioned above.
Link Intime India confirmed the transaction, while an email query to Blackstone remained unanswered till press-time. Transaction advisor Knight Frank India declined to comment for the story.
“Initial lease tenure is five years with appropriate clause for resetting the lease rental at regular interval on mutually agreed terms. Would not like to discuss specific lease rental amount on monthly/yearly basis,” Link Intime said in an email response.
The transaction is part of the company’s expansion plan and it will be shifting its office from Bhandup to this new place on completion of fit-outs, the response said.
Link Intime India, one of the largest players in the Initial Public Offer (IPO) and corporate registry industry, currently operates from its office in one of the industrial complexes in Mumbai’s Bhandup suburb. With this deal for a larger space with a capacity to accommodate around 450 employees, the company will be shifting this office to 247 Park.
Apart from Mumbai, the company has total six offices across cities including Ahmedabad, Coimbatore, Kolkata, New Delhi, Pune and Vadodara.
Last year, private equity major Blackstone Group, the biggest owner of office space in the country, bought the commercial complex 247 Park for over Rs 1,050 crore. The 1.1 million sq ft property was earlier owned by Milestone Capital and HCC Real Estate in the ratio of 74:26. Following this acquisition, Blackstone has spent Rs 25-30 crore to upgrade the office building.
The commercial real estate market in India has been growing at a steady pace in the backdrop of positive changes in policy and regulations have given a further boost to the sector. Last year proved to be a record year with commercial real estate witnessing the highest ever annual office absorption of around 35 million sq ft.
In the recent July-September quarter, information technology and IT-enabled service companies continued to lead office space transactions, accounting for more than half the space take up. Banking, financial services & insurance, along with engineering & manufacturing accounted for a share of about 10% each, with transactions mostly in Mumbai and Chennai.
Walls N Roof Comment: Link Intime is an integrated player in the IPO & Corporate Registry business with Pan India reach and reputation. The company is presently operating from Bhandup and will be shifting the office to 247 park by Blackstone Group.
India is the world’s fastest growing economy with a GDP of 7.6% for the FY16. The commercial real estate has been growing at a very fast pace. The rental value for commercial spaces in the metro cities has also escalated. The country is witnessing a very fast growth with the initiatives like Smart City Mission, HRIDAY and AMRUT.
With the upcoming development plans, increasing investment from the government and growing infrastructure, the real estate sector is expected to grow at a very fast rate.