ICICI Securities, the financial arm of ICICI Bank, has secured a long-term lease for more than 188,000 sq ft of office space at Mindspace Juinagar, an information technology park in Navi Mumbai. The lease, spanning over 12 years, involves five floors in one of the towers within the IT park and was arranged with Newfound Properties & Leasing, a subsidiary of real estate developer K Raheja Corp.
Under the terms of the agreement, ICICI Securities will be paying monthly rentals of Rs 92.15 lakh for the office space, with a provision for a 4% annual escalation, resulting in a total payout of approximately Rs 1.66 billion over the lease's entire duration. The transaction, which includes an upfront deposit equivalent to 12 months' rent (over Rs 110 million), grants ICICI Securities exclusive access to 190 car parking slots in the commercial tower.
The deal, officially registered on December 15, will see the lease come into effect from January 1, 2024. Notably, ICICI Securities has a lock-in period of the initial five years, during which the licensor, Newfound Properties & Leasing, is prohibited from terminating the lease.
Despite global economic challenges, the Indian office sector has experienced sustained growth in 2023, showcasing the robust demand and resilience against global headwinds. Recent data from a JLL India study indicates that net office space absorption in the country is expected to reach 37-39 million sq ft, comparable to 2022. With leasing activities anticipated to intensify in the final quarter of 2023, the year is predicted to surpass the average of 2017-2019.
Email queries to ICICI Securities and K Raheja Corp by ET remained unanswered. Over the past decade, there has been a notable shift in the office space demand, with the banking, financial services, and insurance (BFSI) sector surpassing the technology sector. Domestic companies in India, particularly in the media, consulting, and BFSI sectors, are driving increased demand for office space, signalling a trend observed by developers and operators of office complexes.
