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Barclays Bank, through its India arm, has finalized a significant lease agreement with K Raheja Corp for a premium office space in Mumbai's prestigious Worli area. The lease is valued at approximately INR 306 crores, covering a total of 64,000 sq ft across the 32nd and 33rd floors of the Altimus tower. The tower is developed by K Raheja Corp's subsidiary Whispering Heights Real Estate. This long-term lease spans over 10 years and will be utilized by Barclays India and Barclays Investments and Loans (India) Pvt Ltd. The agreement includes an initial five-year term, with an option to renew for an additional five years.
As part of the deal, Barclays Bank's India arm has paid an upfront deposit equivalent to six months' rent at the time of registration. The lease rental has been set at INR 320 per sq ft for the first year, amounting to over INR 2.08 crore per month, with a 4.5% increase every year thereafter. The lease officially starts from January 1, with rent payment beginning on July 1, 2024. Additionally, Barclays Bank gains exclusive access to more than 51 car parking slots within the commercial tower.
Under the terms of the agreement, the lessor, Whispering Heights Real Estate, is bound to maintain the lease agreement throughout its entirety, while Barclays Bank's India arm has a lock-in period of two years. The commercial project is situated on a land parcel spanning over 3 acres and boasts a leasable area of more than 1 million sq ft which recently obtained its occupancy certificate. Several entities from the banking and financial services sector are reportedly in discussions to lease office space in the complex, which stands as one of the tallest office towers in South Mumbai's central business district.
In a separate deal, Morgan Stanley, an American multinational investment management and financial services company, secured front office space across two floors in the same commercial tower through a long-term lease spanning over 9 years. The financial major will be paying a total lease amount exceeding INR 340 crores for an office space of 86,200 sq ft on the 39th and 40th floors of the tower.
Barclays plc, one of the largest UK employers in India, employs over 23,000 individuals across its banking, technology, and shared services operations in the country. With a branch presence in India since 1990, Barclays plc is recognized for its leading positions in corporate banking and investment banking.
India's top eight office property markets have witnessed a surge in demand, reflecting strong occupier activity and highlighting the country's inherent economic strength. According to Knight Frank India data, total office transactions grew by 15% in 2023 to reach 59.6 million sq.ft., marking the second-best year historically, with the peak level achieved in 2019 at 60.6 million sq.ft.
To conclude, Barclays Bank's lease agreement underscores its commitment to establishing a strong presence in Mumbai's commercial real estate market, aligning with its strategic objectives in India. The deal also reflects the robust growth and demand observed in the country's office property market, further reinforcing India's position as a key destination for investment and business expansion.
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