HDFC Bank has picked up an entire 8-storey building with office space spread over 4 lakh sq ft in a commercial complex Mindspace Airoli West in Navi Mumbai through a long-term lease spanning across a total 10 years, said persons with direct knowledge of the development.
The bank will be paying rentals of over Rs 320 crore including 15% escalation every three years as per two separate agreements inked with the listed landlord Mindspace Business Parks REIT, in one of the largest office deals concluded this year.
The newly leased office building with a basement, ground floor and 8 upper floors is expected to serve as a significant base for HDFC Bank’s operations, aligning with its expansion and operational efficiency goals. The bank was already operating in this commercial complex with its office spread across few floors in another building.
As per one the agreements that was registered on November 13, the lease will start from January 1 and the bank has paid security deposit of Rs 5.81 crore equivalent of 6 months’ rentals, showed the document accessed through realty data analytics firm Propstack.
K Raheja Corp-backed Mindspace Business Parks REIT has already received an approval and has converted this building as a non-processing area as per the government’s decision to allow partial and floor-wise denotification of special economic zones through a key amendment to SEZ Rules, 2006.
Some of the other key occupants in Mindspace Airoli West include Dow, Accenture, IDFC, Princeton Digital, and Technimont.
Recently, HDFC Bank, as part of its post-merger integration with HDFC, decided to sell several non-core real estate assets in key urban locations. The move is aimed at streamlining its property portfolio and creating additional liquidity to further strengthen its already robust financial position.
ET’s email query to HDFC Bank and Mindspace Business Parks REIT remained unanswered until the time of going to press.
According to property consultants, the Airoli micro-market is seeing a strong demand from data centers, financial services, Indian Multinationals, including banks, fintech and IT services. It is also starting to emerge as a new GCC hub. It has become a leading hub for cloud infrastructure, driven by its strategic location near submarine cable landing stations, stable power supply with zero outage, availability of renewable energy, and robust infrastructure.
The Banking, Financial Services, and Insurance (BFSI) sector is experiencing a sharp rise in demand for office spaces, with leasing activity this year expected to exceed the record levels achieved in 2023. This growth is fuelled by advancements in technology, increasing digital adoption, a skilled talent pool, and shifting market trends.
