MUMBAI: ICICI Securities, the financial services company of ICICI Bank, has picked up over 188,000 sq ft office space in information technology park Mindspace Juinagar in Navi Mumbai through a long-term lease of over 12 years.
The ICICI Bank subsidiary has leased the office space spread across five floors in one of the towers of the IT park from Newfound Properties & Leasing, a subsidiary of real estate developer K Raheja Corp.
The financial services company will be paying monthly rentals of Rs 92.15 lakh for the office space. The lease agreement includes a clause to escalate rentals 4% every year, taking its total payout to around Rs 166 crore through the total term of the lease.
The deal was registered on December 15 and the lease tenure will commence from January 1, 2024, shows documents accessed through Propstack. The company has paid an upfront deposit, equivalent to 12 months’ rent, of over Rs 11 crore for the transaction that also provides ICICI Securities exclusive access to 190 car parking slots in the commercial tower.
As part of the agreement, the licensor Newfound Properties & Leasing is not allowed to terminate the lease for the entire term, while the licensee ICICI Securities will have a lock-in period of initial five years.
The Indian office sector has witnessed sustained growth in demand in 2023 despite the global sluggishness and the performance is seen as a testament to the strong fundamentals of demand and the absence of any lasting effects of the global headwinds.
The net office space absorption in the country is seen on a par with 2022 closing at 37-39 million sq ft, showed a recent JLL India study. With leasing activity expected to further pick up pace in the last quarter of 2023, the year is expected to surpass the 2017-2019 average.
ET’s email queries to ICICI Securities and K Raheja Corp remained unanswered.
In a notable shift over the past decade, the demand for office spaces in the banking, financial services and insurance (BFSI) sector has outpaced that of the technology sector. Developers and operators of office complexes are also witnessing a surge in office space demand among India’s domestic companies, primarily driven by the burgeoning media, consulting and BFSI sectors.
