Global financial services and investment management firm State Street Corporation has picked up an entire commercial office tower near Mumbai‘s business district Bandra-Kurla Complex (BKC) from Brookfield Properties through a long-term lease of around 10 years, said people with direct knowledge of the development.
The company will be paying a total rental of more than Rs 350 crore for the office spread over around 250,000 sq ft through the entire lease tenure.
The Boston-based company has leased the office space spread across the ground plus six-storey tower, which is part of a 10-acre commercial complex Equinox Business Park, to set up its global capability center (GCC) serving clients globally.
“The lease terms include a lock-in period of 36 months and a clause to escalate rentals by 4.5% every 12 months,” said one of the persons mentioned above.
The NYSE-listed company’s move aligns with a growing trend of global corporations establishing GCCs in India, leveraging the country’s cost advantages, skilled workforce, and digital infrastructure.
India has become a preferred destination for GCCs across sectors, especially for financial and tech firms, given its robust talent pool and favourable business ecosystem.
State Street’s investment reflects this shift, emphasizing the strategic importance of India in supporting global operations. This development also underscores BKC’s rise as a key business hub for international corporations seeking a presence in India.
ET’s email query to State Street Corporation remained unanswered until the time of going to press, while Brookfield Properties declined to comment.
The Equinox campus, located off BKC, has a total four towers with 1.3 million sq ft leasable space and 2 acres of open area. Following this transaction, the complex has touched occupancy level of 99% with key tenants including Tata Communications, Mirae Asset Capital Markets, NSE, and Titan.
In India, Brookfield Properties manages around 55 million sq ft of assets across 10 key cities, with 15 million sq ft serving GCCs. Some of the marquee assets in its portfolio include Candor TechSpace; Worldmark; Ecoworld, Ecospace, and CoWrks, a leading co-working and flexi office business across India.
Brookfield’s assets under management (AUM) in India is around $29 billion across real estate, infrastructure, renewable power, and private equity. $11 billion in AUM in real estate in the country.
State Street Corporation is one of the world’s leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading.
With $46.8 trillion in assets under custody and administration and $4.7 trillion in assets under management as of September end. State Street operates globally in more than 100 geographic markets.
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.
