AgenciesTata Group's engineering, procurement and construction company Tata Projects has picked up over 120,000 sq ft office space in Mumbai's Powai suburb through a long-term lease to set up its headquarters that can accommodate around 1,000 employees, said people with direct knowledge of the development.
The company has leased the space in commercial tower Cignus Powai, which is a project of K Raheja Corp's hospitality business Chalet Hotels, for five years. The Tata Sons subsidiary will be paying rentals of nearly '86 crore through the tenure of the lease.
"While the company has leased office space spread across two floors under this deal, it may consider picking up one more floor for further growth and expansion. As per the agreement, the lease has a lock-in period of three years and standard clause of rental escalation," said one of the persons cited above.
ET's email queries to Tata Projects and K Raheja Corp remained unanswered till press time.
The commercial real estate market in India's major cities is transforming due to changing company needs, rapid infrastructural development and evolving workplace norms, as recent lease deals signal the creation of new hotspots drawing firms and investors.
Cignus Powai is a single commercial tower with 750,000 sq office space across 16 floors situated adjacent to a five-star hotel, The Westin Mumbai Powai Lake, and Marriott Executive Apartments. It is part of a larger mixed-use project by Chalet Hotels and is being developed and leased by K Raheja Corp's commercial business.
The company has leased the space in commercial tower Cignus Powai, which is a project of K Raheja Corp's hospitality business Chalet Hotels, for five years. The Tata Sons subsidiary will be paying rentals of nearly '86 crore through the tenure of the lease.
"While the company has leased office space spread across two floors under this deal, it may consider picking up one more floor for further growth and expansion. As per the agreement, the lease has a lock-in period of three years and standard clause of rental escalation," said one of the persons cited above.
ET's email queries to Tata Projects and K Raheja Corp remained unanswered till press time.
The commercial real estate market in India's major cities is transforming due to changing company needs, rapid infrastructural development and evolving workplace norms, as recent lease deals signal the creation of new hotspots drawing firms and investors.
"India's commercial property market is witnessing a transition in favour of newer quality assets of established developers and institutional landlords, and provides amenities helping tenants offer their employees a healthy work and leisure balance," said Gautam Saraf, MD-Mumbai, Cushman & Wakefield. "We have been increasingly noticing lower vacancies and higher premium attached to quality grade A assets, and we believe that this premium will only rise in the future."
Cignus Powai is a single commercial tower with 750,000 sq office space across 16 floors situated adjacent to a five-star hotel, The Westin Mumbai Powai Lake, and Marriott Executive Apartments. It is part of a larger mixed-use project by Chalet Hotels and is being developed and leased by K Raheja Corp's commercial business.
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