SBI Funds Management purchases Rs 103 crore office space in Mumbai
The deal comes at a time when India's office market is witnessing significant demand
 "SBI Funds Management purchases Rs 103 crore office space in Mumbai")
Asset management firm SBI Funds Management has purchased office space spanning 67,870 sq ft at Parinee Cresenzo in Mumbai’s Bandra-Kurla Complex (BKC) for Rs 103 crore, according to real estate data platform Propstack.
The company did not respond to a query from Business Standard.
The deal comes at a time when India's office market is witnessing significant demand.
A few days ago, Adar Poonawalla, chief executive officer of Serum Institute of India and owner of Rising Sun Holdings, bought the first floor of Cerebrum IT Park in Pune for Rs 395 crore. According to recent reports, ICICI Prudential Asset Management Company entered a large office space deal near Mumbai International Airport for Rs 315 crore. In another mega deal, Kinnteista, investor Rekha Jhunjhunwala's firm, reportedly bought commercial space in BKC and Chandivali in Mumbai for Rs 740 crore. Also, Red Fox IT Infra, a subsidiary of Redbrick Offices, is learnt to have bought several office spaces in Mumbai in a Rs 260-crore deal.
However, many of the office deals are in leasing. Property consultancy Cushman & Wakefield, in a recent report, said that leasing across the top eight cities is expected to exceed 80 million square feet in 2024. This is being driven by a combination of factors, including the continued growth of sectors such as IT and financial services.
Among others, Deloitte Shared Services leased 80,000 sq ft of office space in Oberoi Commerz III, Mumbai, earlier this month. The lease is expected to start on November 1.
Morgan Stanley also leased 1 million sq ft of office space in the same complex in Mumbai recently. The annual rent, extending over a 10-year period, is estimated at Rs 192 crore, with a security deposit of Rs 104.9 crore, according to reports.
In Bengaluru, realty player RMZ Corporation leased 360,000 sq ft of office space to Chevron Global Technology and Services at RMZ Ecoworld 30-series recently. Chevron is expected to set up an engineering and innovation excellence centre within this space.
In the first half of 2024 alone, leasing activity reached 41.9 million sq ft, representing the highest leasing volume recorded for the first half of any year so far, according to industry data. This figure accounts for 56 per cent of the total gross leasing volume (GLV) for 2023.