Sebi scouts for tenants in new Bandra-Kurla Complex property

The Securities and Exchange Board of India (Sebi) is planning to lease out at least four floors of its recently-acquired building in Mumbai’s plush Bandra-Kurla Complex (BKC) area.

According to sources, the markets regulator would soon invite government-owned institutions for tenancy. It had acquired the building from IDBI Bank for Rs 10 billion just before the close of financial year 2017-18.

The new building, close to its headquarters, was acquired to accommodate growing staff. However, the regulator doesn’t immediately need the entire 200,000 sq ft property. Sources say Sebi would require less than half of the floors for current operations.

In the absence of office space, especially after merging with the Forward Markets Commission, Sebi had stationed its market intermediaries’ regulation and supervision department at the office in Nariman Point in South Mumbai. Enquiry and adjudication officers worked from the headquarters at BKC.

Renting out the remaining property will help Sebi shore up revenue and meet its growing expenses. For the current financial year, Sebi’s expenses are estimated to be Rs 4.7 billion, 19 per cent more than in 2017-18.

Sources say the new building has a carpet area of 200,000 sq ft office space and super built up area of 321,000 sq ft. 

“Being a prime central business district, BKC has been witnessing annual rental rise of one to two per cent. The rental value for this area has remained steady due to a drop in vacancy, despite new supply. It is popular with financial institutions,” said Pankaj Kapoor, managing director, Liases Foras, a real estate rating and research firm. 

Rentals in the G-Block of BKC, where the new building is situated, are between Rs 230 and Rs 275 per sq ft, say experts.

“Demand will continue to remain robust at BKC, compared to other business districts, due to the integrated development and the environment created by its controlling body. Since the vacancy at BKC is under pressure, the value of the properties will remain at the higher side,” said Knight Frank’s chief economist and national director (research), Samantak Das.