Oracle India Pvt Ltd will lease large office space in the Bandra Kurla Complex. The IT majorhas already signed the agreement.
MUMBAI: Oracle has signed a lease agreement for its Indian arm Oracle India Pvt Ltd. The IT major has leased large sized office space in the Bandra Kurla Complex in Mumbai. The group will lease 50,000 sq. ft. of office space.
Oracle India will have to pay Rs.340 per sq. ft. for gaining office in the BKC which is one of the most costly office spaces across India and Asia Pacific Region. The lease agreement will be for a term of nine years.
One floor will be fully leased by Oracle India. The transaction worth Rs.183.6 Cr is the largest lease transaction in FIFC. First International Financial Centre (FIFC) is a Grade-A commercial development in BKC.
The rentals in BKC range from Rs.225-400 per sq. ft. Jones Lang LaSalle India’s (West) managing director Ramesh Nair was the transaction advisor. Mr. Nair said that JLL is in discussion with other BFSI players for leasing in the FIFC.
FIFC sold six floors (2.97 lakh sq. ft. of office space) for Rs.986 Cr to Citi Bank. This is the biggest commercial transaction in India. The sale took place in April 2012.
Godrej One is the latest development in the BKC. The total stock of BKC is now 10.5 million sq. ft. Out of this only 16% of office space is vacant.
According to a CB Richard Ellis (CBRE) report prime office space absorption across key cities in India rose by 37 %. However there is a decline of office space absorption on quarter-to-quarter basis. Office space absorption is more in comparison to last January. Yet this is smaller than the 7 million sq. ft. absorption of the last quarter of 2012.