HDFC Bank picks up 1 lakh sq ft in Blackstone's Mumbai Towers on a 5-yr lease

economictimes.indiatimes.com:

HDFC Bank picked up about 1 lakh sq ft office space spread across two towers of Blackstone Group backed Nucleus Office Parks' commercial complex One International Center in Mumbai's business district Lower Parel through a long-term lease of five years, said persons with direct knowledge of the development. The deal is the first real estate transaction by the bank following after its merger with the group's non-banking finance company Housing Development Finance Corporation (HDFC), indicating the need for additional space for expanded operations. «The new office will be used for consolidation and expansion of the bank's operations including financial services and credit cards.

The deal was concluded and registered last week,» said one of the persons mentioned above. The office space was leased by HDFC Bank on the 7th floor of tower 2 and 3, and 8th floor of tower 2 that was earlier occupied by Yes Bank. The bank will be paying rentals of ₹165 per sq ft a month for the leased space and the agreement includes a clause to escalate rentals by 4.5% every 12 months for the next five years.

Several large office deals have been concluded in Lower Parel micro-market over the last few quarters as it has emerged as a value proposition despite being a prime business district. In June, consumer appliances major Bajaj Electricals leased an entire floor of office space spread over 61,000 sq ft in the same commercial complex. Prior to that, Aditya Birla Group company Hindalco Industries also leased an office across a floor with 50,000 sq ft here.