HDFC Bank leases office space in Navi Mumbai for 10 years, paying rent of Rs 320 crore

HDFC Bank has leased 400,000 sq ft of office space at Mindspace Business Park in Airolisi, Navi Mumbai for $3.2 billion rupees, payable in 10 years, hindustan times Reported on Tuesday, December 10.

The private sector bank has entered into two separate lease agreements with Mindspace Business Parks. Under the first lease agreement, HDFC Bank has leased 1.97 lakh sq ft of space in Gigaplex Building 5, also known as Mindspace Business Park in Airoli West. The lease area includes the lobby, fifth, sixth, seventh and eighth floors. It also has 154 parking spaces.

The second lease reportedly highlights that the lender has leased 218,000 square feet of space in the lobby, first, second, third and fourth floors, including 168 parking spaces.

Agreement documents show that the deal includes a 15% rent increase clause, and the total contract value exceeds $320 crores over 10 years.

HDFC Bank shares closed down 0.09% $Tuesday’s closing price was 1,868.05, compared to the previous market close $1,869.80.

Agreement details

As per the agreement details, HDFC Bank intends to use the space for its back-office operations and IT and IT-enabled service needs.

The report quoted sources as saying that the transaction is part of the space processing area designated as the Special Economic Zone (SEZ) of Mindspace Business Park.

Navi Mumbai is an important micro market for commercial real estate due to its strategic location and good connectivity. With projects like Navi Mumbai International Airport and Metro Rail construction, Navi Mumbai is expected to witness more infrastructure development in the coming years.

The report states that Airoli has become a hub for banking, IT and technology industries and the demand for office space in Airoli is increasing with the rise of new generation business hubs and rowing workforce.

LiveMint could not independently verify the report.