IDFC First Bank Inks Major Lease Deal in Mumbai's Goregaon
IDFC First Bank leases 1.65 lakh sq ft office space in Oberoi Commerz III, Goregaon, Mumbai, reflecting strong market fundamentals and resilience in India's commercial real estate market.
Idfc First BankOberoi RealtyMumbaiCommercial Real EstateOffice LeasingReal Estate MumbaiAug 06, 2024
The lease agreement includes a clause to escalate these rentals by 15% after 36 months from the license commencement date. The lease agreement will commence from January 2025 with a lock-in period of three years, and the fit-out period of total five months will start from July 15, 2024.
The bank will be paying common area maintenance charges of Rs 41.23 lakh per month, taking the total outgo for this office space to over Rs 171 crore over the tenure of the lease, including the rental escalation. The transaction was registered on July 9, and the agreement will also provide exclusive access to a total of 164 car parking slots in the tower.
IDFC First Bank has reported nearly 36% on-year increase in total deposits at Rs 2,09,666 crore and 37.8% growth in customer deposits grew at Rs 2,04,572 crore as of June end. The bank opened 11 new branches to reach a branch count of 955 during the quarter.
information on Oberoi Realty Oberoi Realty is a prominent real estate developer in India, known for developing premium residential and commercial projects. Oberoi Garden City, spread over 80 acres, is a premium mixed-use development in Goregaon located adjacent to a metro station. Oberoi Commerz III is a 2.9-million-sq-ft tower that already houses key occupiers, including global investment bank Morgan Stanley.
Despite global economic sluggishness, the Indian office sector has experienced sustained growth in demand, reflecting strong market fundamentals and resilience against global challenges. According to recent data, the office market surged to its best-ever first half with gross leasing of 33.5 million sq ft, up 29% from a year ago, surpassing the previous first half record performance of 30.71 million sq ft seen in 2019.
The remarkable growth in office leasing underscores the confidence in India's commercial real estate market and its ability to attract significant investments despite broader economic uncertainties. This trend is expected to continue, driven by robust demand from various sectors and favorable market conditions.
IDFC First Bank is a leading private sector bank in India, offering a range of financial services to individuals and businesses. With a growing network of branches and a strong digital platform, the bank aims to provide convenient and personalized banking solutions to its customers.
Frequently Asked Questions
What is the size of the office space leased by IDFC First Bank?
1.65 lakh sq ft
What is the rental agreement for the office space?
Rs 233 per sq ft a month, with a 15% escalation clause after 36 months
Where is the office space located?
Oberoi Commerz III, Goregaon, Mumbai
How many car parking slots will IDFC First Bank have access to?
164
What is the expected growth in India's commercial real estate market?
Driven by robust demand from various sectors and favorable market conditions, the market is expected to continue growing
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