ICICI Prudential buys office space in Mumbai’s BKC for Rs147crore

ICICI Prudential has bought the space at the rate of Rs40,960 per sq. ft on carpet area basis

Bidya Sapam
Published28 Feb 2017, 09:42 AM IST
It is not clear if ICICI Prudential has bought it for investment purpose or plans to move in the building later. Photo: Reuters
It is not clear if ICICI Prudential has bought it for investment purpose or plans to move in the building later. Photo: Reuters

Mumbai: At a time when housing sales are yet to recover from a three-year slowdown, transactions in commercial real estate continue to see an uptick.

In yet another commercial office deal, ICICI Prudential Life Insurance Co. Ltd has acquired an entire floor of 35,000 sq. ft office space at Crescenzo building at Mumbai’s financial district Bandra-Kurla Complex (BKC) for Rs147 crore, according to two people aware of the development.

The space has been bought by ICICI Prudential at the rate of Rs40,960 per sq. ft on carpet area basis. It is currently on lease by Tata Communications at a rent of Rs177 per sq. ft per month, said the first person mentioned above.

Mumbai-based real estate firm Parinee Group, which developed the 20-storey Crescenzo building, confirmed the transaction.

“We have sold one entire floor comprising of approximately 35,000 sq. ft. of carpet area to ICICI Prudential Life Insurance Company for Rs147 Crore,” Vipul Shah, managing director, Parinee Group told Mint.

Shah said the deal has been concluded at an attractive rental yields of around 7.25%. “There is a very good demand uptick for commercial real estate with lot of money flow chasing limited Grade A Office Spaces,” he said.

However, it is not clear if ICICI Prudential has bought it for investment purpose or plans to move in the building later. The company has not yet responded to the email sent seeking confirmation on the development.

According to Abhishek Tiwari, founder of CRE Matrix, a Mumbai-based real estate analytics firm, demand for quality office properties at BKC far exceeds the supply. Several funds and investors are eyeing to invest in preleased properties as they have lower risk and provides a stable cash flow.

“There is a greater interest towards commercial real estate as residential segment sees a slowdown in the last two-three years. Funds, ultra high net worth individuals (HNIs) and investors are interested in picking up preleased properties as they have lower risk,” Abhishek Tiwari, founder, CRE Matrix, a Mumbai-based real estate analytics firm.

In 2016, Indian realty market saw its biggest commercial real estate deal when Canada-based Brookfield Asset Management Inc. acquired office and retail assets of Hiranandani Developers Pvt. Ltd at Powai, a suburb in Mumbai for close to $1 billion.

Leasing transactions also continued to pick up momentum this year.

In January, New York-headquartered office rental firm WeWork signed of the biggest leasing deals by taking up an entire 16-storey ENAM Sambhav building at BKC for a monthly rental of Rs4.3 crore.

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.

MoreLess
First Published:28 Feb 2017, 09:42 AM IST
Business NewsCompaniesICICI Prudential buys office space in Mumbai’s BKC for Rs147crore

Get Instant Loan up to ₹10 Lakh!

  • Employment Type

    Most Active Stocks

    Indian Oil Corporation share price

    138.90
    03:59 PM | 4 NOV 2024
    -6.1 (-4.21%)

    Tata Steel share price

    146.95
    03:56 PM | 4 NOV 2024
    -2.75 (-1.84%)

    Reliance Industries share price

    1,302.00
    03:59 PM | 4 NOV 2024
    -37.1 (-2.77%)

    Tata Motors share price

    824.10
    03:59 PM | 4 NOV 2024
    -19.5 (-2.31%)
    More Active Stocks

    Market Snapshot

    • Top Gainers
    • Top Losers
    • 52 Week High

    City Union Bank share price

    178.10
    03:29 PM | 4 NOV 2024
    0.25 (0.14%)

    Federal Bank share price

    204.15
    03:59 PM | 4 NOV 2024
    -0.1 (-0.05%)

    Jubilant Pharmova share price

    1,252.35
    03:40 PM | 4 NOV 2024
    -11.65 (-0.92%)

    UTI Asset Management Company share price

    1,326.85
    03:29 PM | 4 NOV 2024
    -33.4 (-2.46%)
    More from 52 Week High

    Poly Medicure share price

    2,876.70
    03:43 PM | 4 NOV 2024
    -286 (-9.04%)

    Vodafone Idea share price

    7.89
    03:59 PM | 4 NOV 2024
    -0.56 (-6.63%)

    Chennai Petroleum Corporation share price

    614.70
    03:45 PM | 4 NOV 2024
    -40.85 (-6.23%)

    Angel Broking share price

    2,886.35
    03:59 PM | 4 NOV 2024
    -184.55 (-6.01%)
    More from Top Losers

    Fine Organic Industries share price

    5,123.00
    03:29 PM | 4 NOV 2024
    280.9 (5.8%)

    Firstsource Solutions share price

    358.85
    03:50 PM | 4 NOV 2024
    18.55 (5.45%)

    Rainbow Childrens Medicare share price

    1,630.70
    03:59 PM | 4 NOV 2024
    81.1 (5.23%)

    Gillette India share price

    10,323.35
    03:29 PM | 4 NOV 2024
    361.55 (3.63%)
    More from Top Gainers

    Recommended For You

      More Recommendations

      Gold Prices

      • 24K
      • 22K
      Bangalore
      80,415.000.00
      Chennai
      80,421.000.00
      Delhi
      80,573.000.00
      Kolkata
      80,425.000.00

      Fuel Price

      • Petrol
      • Diesel
      Bangalore
      102.92/L0.00
      Chennai
      101.03/L0.23
      Kolkata
      104.95/L0.00
      New Delhi
      94.77/L0.00

      Popular in Companies

        HomeMarketsloanPremiumMint Shorts