HDFC Bank leases 4 lakh sq ft office space in Mumbai

HDFC Bank has picked up over 4.50 lakh sq ft office space spanning across a total seven floors in a commercial tower in Mumbai’s western suburb Andheri east through a long-term lease of over 10 years. The mega lease deal will see the bank making a total rental payout of over Rs 1,020 crore including other charges through the entire term of the lease to the project developer Runwal Realty. The lease agreement includes a clause to escalate rentals by 15% after every 36 months. The lease period commenced from January 21 and the pacts provide for a fit-out period of 180 days. The deal concluded through three separate agreements attracting stamp duty of over Rs 116 crore and the same was registered on January 27. The bank has, however, decided to keep Ramon House, the erstwhile headquarter of HDFC out of this monetization exercise. ET’s email queries to HDFC Bank and Runwal Realty remained unanswered until the time of going to press. The Indian office property market has experienced remarkable growth in recent years, fuelled by a robust economy and increasing demand from both domestic and international companies. This growth can be attributed to several factors, including a steady rise in economic activity, the expansion of multinational corporations into India, and the thriving startup ecosystem. Additionally, the country's growing prominence as a global outsourcing hub and its large talent pool have further boosted the need for high-quality office spaces in key metropolitan cities and emerging business hubs.
 

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