HSBC has signed a letter of intent (LOI) with real estate developer Prestige Group to develop a 1.2 million sq ft tower in Bengaluru's tech corridor, Outer Ring Road. The pre-lease agreement is for a 20-year period, underscoring the bank’s long-term commitment to India.
The bank's new campus, which will house its global capability centre (GCC), will be called Prestige JRC Signature Towers. After the construction is completed, it is expected to move in next year.
“The rental payout over the 20-year period is over ₹3,000 crore,” said a person familiar with the transaction, who didn't want to be named.
The new campus is intended to bring together HSBC employees currently based across multiple locations in Bengaluru, fostering greater collaboration and connectivity between teams, and providing additional space.
Under the proposed arrangement, HSBC will occupy Towers A and B, totalling 1.2 million sq ft of office space, which is currently under construction, at Prestige Lakeshore Drive, a business park in the city. The developer has signed large leases with ride-hailing giant Uber, investment firm Blackstone Group and DXC Technology.
Georges Elhedery, HSBC Group CEO, said India is one of the most important talent centres in the world and remains a key market for HSBC.
“Bringing our colleagues together on one campus will help us move faster, collaborate more closely, and continue developing expertise and talent to provide the best support for our customers," he said in a statement.
Expanding GCC capabilities
India is home to HSBC's largest global service & technology centres, with more than 40,000 colleagues supporting the bank's global businesses, customers and operations.
These centres have evolved into critical capability hubs, playing an important role in delivering technology, operations, risk management, financial crime compliance, data and analytics, digital transformation and enterprise-wide innovation for HSBC worldwide, the bank said. This investment will enhance the capability centres' ability to meet the evolving needs of customers around the world.
GCCs want top-quality real estate, and Prestige Group has worked on the mobility and accessibility of the Lakeshore Drive park by widening the road, building a flyover, and even adopting the new Prestige Bellandur metro station, which will be integrated with the property.
Juggy Marwaha, executive director and CEO, Prestige Group – Office, said the partnership reflects Bengaluru's growing strength as a global business hub.
“Combined with the direct access offered by the upcoming Prestige Bellandur Metro Station, the development will create a next-generation workplace ecosystem that sets new benchmarks in connectivity, sustainability, employee experience and operational excellence," Marwaha added.
Next-generation workplace
The new HSBC campus has been designed as a modern workplace with collaboration spaces, shared amenities, including a large dining facility and multi-functional spaces for town halls and learning and development, and outdoor and community spaces.
“Our ambition is to create a high-quality environment that supports HSBC’s customers and businesses," Suzy White, group chief operating officer, HSBC, said.
Bengaluru, which houses the largest number of GCCs in the country, has seen a slew of lease deals in recent months. In June, Mint reported that Target India has leased an 830,000 sq ft, brand-new building from Embassy REIT at Embassy Manyata Business Park, where it already occupies over 500,000 sq ft.