Amitabh Bachchan rents 4 commercial units of Mumbai property, around 10,000 sqft, for ₹2.07 crore per year: Reports

Mumbai's property market is changing, with many Bollywood stars now choosing to invest in business properties. Amitabh Bachchan recently engaged in a significant real estate transaction. The Bollywood actor rented out four commercial units in Mumbai's Oshiwara district. These units, spanning approximately 10,000 square feet, have been leased to Warner Music India Limited for a five-year tenure, reported The Economic Times and Moneycontrol.

Also Read: Real Estate Outlook 2024: Property rates projected to increase up to 15% but demand to remain steady

Bachchan's decision follows his August 2023 purchase of these spaces, each valued at ₹7.18 crore. This move reflects a broader trend among Bollywood stars, including Kartik Aryan, Manoj Bajpayee and Sara Ali Khan, who have shown a growing preference for commercial over residential investments, driven by the promise of higher rental yields.

Deal details

The rental arrangement includes a three-year lock-in period and offers 12 parking slots, the publications added. The tenant, as per ET, has agreed to pay a rent of ₹170 per square foot every month for the first three years. After that, the rent will increase by 15% for the next two years. The tenant will pay ₹195.50 per square foot per month thereafter.

Also Read: Bengaluru dominates office space absorption, Chennai surprises with 2x growth: Colliers India Report

The initial annual rent is ₹2.07 crore while Warner Music India Limited has paid a security deposit of ₹1.03 crore. The rent will increase to ₹2.38 crore from the fourth year. The lease will take effect in March 2024 and involves a stamp duty of ₹2.88 lakh paid on November 30, as per Moneycontrol.

Bachchan’s gift to daughter

In November, Amitabh and Jaya Bachchan gifted their Pratiksha bungalow in Juhu, Mumbai to their daughter Shweta Nanda. This property was divided into two plots. One measured 9,585 square feet and was valued at ₹31.39 crore while the other was 7,254 square feet and was worth ₹19.24 crore. These plots were transferred through gift deeds on November 8.