Mahindra & Mahindra Financial Services has leased nearly 275,000 sq ft office space in Piramal Realty‘s commercial complex Agastya Corporate Park in central Mumbai’s Kurla locality near business district Bandra-Kurla Complex (BKC), said persons with direct knowledge of the development.
The Mahindra Group company is planning to consolidate operations of all its four entities in this newly-leased office. The company will be paying monthly rental of ₹2.50 crore, taking the total pay out to around ₹270 crore.
This is amongst the largest office lease transactions in the country’s commercial capital post the Covid-19 pandemic. The long-term lease for a total tenure of 10 years will start this month and will see rental escalation of 5% every year.
Financial services firm Edelweiss Securities recently picked up nearly 100,000 sq ft of office space in Adani Realty‘s commercial project Inspire BKC in the business district through a long-term lease of over nine years. The rental pay out in this deal will be Rs 285 crore over the total tenure of the deal and is the largest office space transaction this year.
ET’s separate email query to Piramal Realty and Mahindra Group remained unanswered until the time of going to press. Transaction advisor Colliers India declined to comment for the story.
Piramal Agastya, spread over 16 acres on LBS Marg, is one of the country’s largest non-information technology (IT) commercial developments, with a total project size of nearly 2 million sq ft.
ET has reported earlier that Singapore-based diversified conglomerate Keppel Corporation’s property arm Keppel Land is set to acquire part of Piramal Realty’s this commercial development for more than ₹1,200 crore.
Keppel Land has signed the term sheet to acquire nearly 1 million sq ft of commercial real estate spread across a total of six entire floors in this multi-tenanted tower.
