HDFC Bank leases 1 lakh sq ft in Blackstone's Mumbai Towers for 5 yrs

01 Aug 2023

According to individuals familiar with the matter, HDFC Bank has acquired around 100,000 square feet of office space situated in two towers of Nucleus Office Parks' commercial complex, One International Center, located in the Lower Parel business district of Mumbai. The acquisition was made through a long-term lease lasting five years. This transaction stands out as one of the most substantial front-office deals of the year.

The insiders noted that this marks the bank's first foray into real estate following its merger with Housing Development Finance Corporation (HDFC), the non-banking finance company affiliated with the Blackstone Group. This suggests that the bank requires additional space to support its expanded operations.

One of the aforementioned sources stated, "The newly acquired office space will be utilized to consolidate and expand the bank's activities, including its financial services and credit card operations. The deal was finalised and officially recorded in the previous week." The specific area leased by HDFC Bank encompasses the 7th floor of tower 2 and 3, as well as the 8th floor of tower 2. Previously, these floors were occupied by Yes Bank.

Under the terms of the agreement, HDFC Bank will make monthly rental payments of ₹165 per square foot for the leased space. Additionally, the rental arrangement includes a provision that mandates a 4.5% increase in rental fees every 12 months throughout the subsequent five years.

Lower Parel, a prominent business district, has witnessed the conclusion of numerous substantial office transactions over the past few quarters, thereby establishing itself as an attractive proposition despite its status as a prime business locality. In the month of June, Bajaj Electricals, a significant player in the consumer appliances sector, secured an entire floor within the same commercial complex, covering an area of 61,000 square feet. Prior to this, Hindalco Industries, a company under the Aditya Birla Group, had also leased office space spanning an entire floor and measuring 50,000 square feet within the complex. Technicolor Creative Studios, a globally renowned company specializing in visual effects and special effects, additionally acquired space across two floors within the office complex.

One International Centre presently serves as the headquarters for prominent global and Indian entities, including Deloitte, Mondelez, and Franklin Templeton.

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