Bank Of America Leases 1.60 Lakh Sq Ft Office For Rs 3.5 Bn
ECONOMY & POLICY

Bank Of America Leases 1.60 Lakh Sq Ft Office For Rs 3.5 Bn

It was reported that Bank of America, a major global financial services firm, had secured over 160,000 square feet of office space in a commercial complex in Mumbai’s Powai locality through a 12-year lease agreement, which included provisions for future scalability to support its growth. Sources familiar with the development revealed that the bank would be paying rentals exceeding Rs 3 billion for this office, which spans three floors.

The agreement also reportedly grants the bank the option to lease an additional 100,000 square feet across two more floors, potentially expanding the total area to 250,000 square feet and increasing the rental outlay to ?6 billion. The lease arrangement was said to have been signed with K Raheja Corp’s Chalet Hotels for office space in the Cignus Powai building through Bank of America’s subsidiary, BA Continuum India.

It was further noted that this move marked both the relocation and expansion of the bank’s existing 15-year-old facility in Mumbai’s Andheri suburb. As a result, BA Continuum’s total real estate footprint in Mumbai was expected to exceed 425,000 square feet. According to the sources, the transaction was concluded and registered on a Friday, with the lease commencing immediately. Fit-out work was to begin shortly, with operations in the new office anticipated to commence within six to eight months.

The agreement was reportedly part of a larger trend of Banking Global Capability Centres (GCCs) expanding their presence in Mumbai, highlighting corporate growth in the region. Furthermore, this transaction was seen to be solidifying the Jogeshwari-Vikhroli Link Road micro-market as a preferred location for GCCs, bolstered by the anticipated metro connectivity that would enhance talent mobility.

Email inquiries sent to Bank of America and K Raheja Corp reportedly went unanswered, while JLL India, the transaction advisor, declined to comment. It was mentioned that Bank of America had established its Global Business Services Unit, BA Continuum India, in 2004 and currently operates in five Indian cities: Mumbai, Hyderabad, Chennai, Gurgaon, and Gujarat’s Gift City.

In addition, it was noted that other significant tenants in the commercial tower include Fedbank Financial Services, Tata Projects, and Redbrick Offices. Reports suggested that the Banking, Financial Services, and Insurance (BFSI) sector was witnessing heightened demand for office spaces, with leasing activity in 2024 projected to surpass record levels seen in 2023. This surge was attributed to advancements in technology, increased digital adoption, a skilled talent pool, and evolving market trends. International entities, it was said, had been driving this growth, accounting for over 65% of BFSI office leasing activity in India over the past six years.

It was reported that Bank of America, a major global financial services firm, had secured over 160,000 square feet of office space in a commercial complex in Mumbai’s Powai locality through a 12-year lease agreement, which included provisions for future scalability to support its growth. Sources familiar with the development revealed that the bank would be paying rentals exceeding Rs 3 billion for this office, which spans three floors. The agreement also reportedly grants the bank the option to lease an additional 100,000 square feet across two more floors, potentially expanding the total area to 250,000 square feet and increasing the rental outlay to ?6 billion. The lease arrangement was said to have been signed with K Raheja Corp’s Chalet Hotels for office space in the Cignus Powai building through Bank of America’s subsidiary, BA Continuum India. It was further noted that this move marked both the relocation and expansion of the bank’s existing 15-year-old facility in Mumbai’s Andheri suburb. As a result, BA Continuum’s total real estate footprint in Mumbai was expected to exceed 425,000 square feet. According to the sources, the transaction was concluded and registered on a Friday, with the lease commencing immediately. Fit-out work was to begin shortly, with operations in the new office anticipated to commence within six to eight months. The agreement was reportedly part of a larger trend of Banking Global Capability Centres (GCCs) expanding their presence in Mumbai, highlighting corporate growth in the region. Furthermore, this transaction was seen to be solidifying the Jogeshwari-Vikhroli Link Road micro-market as a preferred location for GCCs, bolstered by the anticipated metro connectivity that would enhance talent mobility. Email inquiries sent to Bank of America and K Raheja Corp reportedly went unanswered, while JLL India, the transaction advisor, declined to comment. It was mentioned that Bank of America had established its Global Business Services Unit, BA Continuum India, in 2004 and currently operates in five Indian cities: Mumbai, Hyderabad, Chennai, Gurgaon, and Gujarat’s Gift City. In addition, it was noted that other significant tenants in the commercial tower include Fedbank Financial Services, Tata Projects, and Redbrick Offices. Reports suggested that the Banking, Financial Services, and Insurance (BFSI) sector was witnessing heightened demand for office spaces, with leasing activity in 2024 projected to surpass record levels seen in 2023. This surge was attributed to advancements in technology, increased digital adoption, a skilled talent pool, and evolving market trends. International entities, it was said, had been driving this growth, accounting for over 65% of BFSI office leasing activity in India over the past six years.

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