Mumbai: Pharmaceutical firm Abbott India Ltd on Wednesday bought 435,000square feet area at Godrej BKC in Mumbai’s Bandra-Kurla Complex for 1,479 crore from its developer Godrej Properties Ltd to set up a corporate office.

Godrej Properties informed BSE it has closed India’s largest commercial real estate deal with a single user for 1,479 crore but did not reveal the name of the buyer.

In a separate statement, Abbott India on Wednesday said it plans to invest in a new Mumbai corporate office at the Godrej BKC building as part of its plan to consolidate existing offices and bring operations in the city into a single location.

Mint reported on 17 September that Abbott India has closed a 1,400-crore deal to buy office space at Godrej BKC, in one of the largest commercial real estate deals in recent times.

Global real estate consultancy Cushman and Wakefield was the advisor to the deal.

Godrej BKC has over 1.3 million square feet of saleable area and is being developed by Godrej Properties, in partnership with India’s largest airline by passengers carried, Jet Airways (India) Ltd. The project is expected to be ready for occupancy by mid-2016.

“We are very happy to have successfully concluded this large and strategically important deal at our project Godrej BKC," said Pirojsha Godrej,managing director and chief executive officer, Godrej Properties. He said that the deal will help unlock capital invested in the commercial portfolio and speed up the company’s growth.

Godrej Properties is currently developing residential, commercial and township projects spread in 10.25 million square metre (110.30 million square feet) in 12 cities.

Referring to the deal, Abbott India said the office space at the Godrej BKC, likely to be occupied by early 2016, will house more than 1,500 employees.

“India is one of the most important places in the world for Abbott, and we’re investing here accordingly," said Abbott chairman and chief executive officer Miles D. White. “We intend to be a strong, committed, and contributing part of India’s future."

The company said that it also intends to expand manufacturing capacity and research and development (R&D) capability, employee development and community programmes in India.

Abbott India employs around 14,000 people and has sales of over $1 billion in India. It has invested in three manufacturing facilities (Goa and Baddi, Himachal Pradesh, for pharmaceuticals, and Jhagadia, Gujarat, for nutrition) and two R&D facilities (Mumbai for pharmaceuticals and Bengalurufor nutrition).

In the last one year, the commercial property market has seen a pick-up in demand for office space from multinational, information technology (IT) and pharmaceutical firms and start-ups.

In the last few years, BKC has emerged as one of the prime commercial hubs in Mumbai.

The average price of commercial property in BKC ranges between 20,000 and 34,000 per square feet while the rental rates go up to 270 per square feet per month, according to estimates by property consulting firm JLL India.

In 2012, pharmaceutical firm Cipla Ltd bought 130,000 square feet at Peninsula Business Park in Lower Parel for about 985 crore.

Demand for commercial real estate has seen significant growth over the last one year.

According to a report by property advisory CBRE Inc., the uptake of commercial office space rose by 70% in the second quarter of 2015 over the previous quarter, led by banking, financial and insurance services sector.

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