Global financial services major Bank of America has picked up more than 160,000 sq ft office space in a commercial complex in Mumbai’s Powai locality through a long-term lease of 12 years, with provisions for future scalability to accommodate growth, said people with direct knowledge of the development.
Bank of America will be paying rentals of over Rs 350 crore for this new office spread across three floors. As per the agreement, it holds an option to pick up additional 1 lakh sq ft spanning two floors taking the total size of the deal to 250,000 sq ft and rental payout to Rs 600 crore.
The investment bank has entered into the lease agreement with K Raheja Corp’s Chalet Hotels for this office space at Cignus Powai through its subsidiary BA Continuum India.
This move represents both a relocation and expansion of the company’s existing 15-year-old facility in Mumbai’s Andheri suburb. With this addition, BA Continuum’s total real estate portfolio in Mumbai will exceed 4.25 lakh sq ft.
“The transaction was concluded and registered on Friday. The lease term starts immediately and the fit out work will start soon. Bank of America will start operating from the new office in the next 6-8 months,” said one of the persons mentioned above.
The agreement aligns with a broader trend of Banking Global Capability Centers (GCCs) increasing their presence in Mumbai, reflecting ongoing corporate expansions in the region.
This transaction is also establishing the micro market of Jogeshwari-Vikhroli Link Road as a preferred destination for the GCC segment as the upcoming metro connectivity in this location will improve talent mobility within the city.
ET’s email query to Bank of America and K Raheja Corp remained unanswered until the time of going to press. Transaction advisor JLL India declined to comment.
The bank had started this Global Business Services Unit, BA Continuum India, in 2004 and currently operates out of five cities in the country including Mumbai, Hyderabad, Chennai, Gurgaon, and Gujarat’s Gift City.
BA Continuum India handles technology, application development, legal, compliance, tax support services that cater to its global operations.
Some of the other key tenants in this commercial tower are Fedbank Financial Services, Tata Projects, and Redbrick Offices
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.
Global players have been at the forefront of this expansion, dominating over 65% of the BFSI sector’s activity in India. On average, these international entities have accounted for two-thirds of all office space leased by the sector over the past six years.
