IT major Oracle has signed a large-sized commercial lease agreement with First International Financial Centre (FIFC) for 50,000 sq. ft. space in the prime Mumbai property Bandra-Kurla Complex (BKC) for its Indian arm.
Oracle India Pvt Ltd has inked the lease agreement for a period of nine years at Rs 340 per sq. ft. This translates into a lifetime deal worth Rs 183.6 crore. The company has selected the space spread over a single floor and it is the largest transaction in the lease segment for FIFC this year.
FIFC is a Grade A commercial development in Bandra-Kurla Complex, developed by a consortium of US-based investors including the funds affiliated to the Starwood Capital Group, India Property Fund (sponsored by The Chatterjee Group & Vornado Realty Trust) and Urban Infrastructure Real Estate Fund. Ramesh Nair of property consultancy Jones Lang LaSalle India led the transaction for Oracle and CBRE advised FIFC for the same.
Commenting on the deal, Ramesh Nair, managing director (West India) at JLL, said, “The going rate in BKC is around Rs 225-400 per sq. ft. and we are in discussion with other BFSI players for leasing in FIFC.”
Last April, FIFC recorded the biggest commercial real estate transaction in the country when it sold six floors spanning 2.97 lakh sq. ft. to financial services firm Citibank for Rs 986 crore.
The latest development in Bandra-Kurla Complex (BKC) is Godrej One. BKC had a total stock of close to 10.5 million sq. ft. at the end of CY2012 and the current vacancy level at BKC stands at 16 per cent.
According to a report released by property consultancy CB Richard Ellis (CBRE), prime office space absorption across key cities in India witnessed 37 per cent increase in Q1 2013, compared to Q1 2012. Transaction activities during the first quarter of 2013 were dominated by Mumbai, Bangalore, Chennai and Delhi-NCR, representing around 90 per cent of the total transacted space during the quarter.
However, the sequential or quarter-on-quarter figures showed a decline of approximately 6 per cent when compared to 7 million sq. ft. absorption in Q4 2012.
(Edited by Sanghamitra Mandal)