Mumbai: Pirojsha Godrej and his family have bought around 23,000 sq. ft for around Rs110 crore at Godrej BKC, an upmarket office building being developed by Godrej Properties Ltd in Mumbai, two people aware of the development said.
The youngest of the three children of Godrej group chairman Adi Godrej, Pirojsha also heads Godrej Properties as its managing director. Located in Bandra Kurla Complex (BKC), the city's financial district, Godrej BKC will have over 1.3 million sq. ft of saleable area, and is being built in partnership with Jet Airways (India) Ltd. It is expected to open for customers by early next year.
The space is located on the building's ground floor and has been designed as a retail area where restaurants are likely to come up, the two people cited above said, requesting anonymity. The investment by Godrej indicates the potential of retail assets at BKC and the rise in value of commercial properties in the area, the first of the two cited above said. A spokesperson for Godrej Properties declined to comment. E-mails sent to Pirojsha Godrej went unanswered.
Last year, pharmaceutical firm Abbott India Ltd closed one of the biggest commercial deals in the recent past by buying 435,000 sq. ft in the building for Rs1,479 crore to set up its corporate office. In the first half of this financial year, Godrej BKC saw bookings for around 40,725 sq. ft for a total value of around Rs173 crore, the company said in its second quarterly result presentation.
According to property advisors, the building has the potential to be the next big commercial building coming up at BKC in terms of its quality and brand value.
“This (Godrej BKC) is being touted as the next big one which is going to come up and which will take the location to the next level. Overall, BKC is one micro market from a commercial standpoint which is held up from a quality standpoint. So, to that extent, developers have made sure that the successive projects that are coming up are their marque assets from a positioning and quality standpoint," said Shashank Jain, partner (transaction services), PwC India.
He said any retail-oriented development in that area will have good prospects as the area has the ability to attract 24/7 traffic for retail outlets and it would be largely driven by office users.
The commercial property market has seen a pick-up in the past year as demand for office space from multinational, information technology (IT) and pharmaceutical firms and start-ups has risen. Steady lease rentals, high absorption levels, inadequate supply and global investor interest have boosted India’s commercial real estate sector, even as the country’s residential property market remains in a slump.