Oracle India Pvt Ltd Leases Large Office Space in Bandra Kurla Complex
Oracle India Pvt Ltd has signed a lease agreement for a substantial office space in the prestigious Bandra Kurla Complex (BKC), Mumbai. The agreement entails the leasing of 50,000 sq. ft. of office space for a term of nine years.
Key Details of the Lease Agreement:
- Rental Value: Rs. 340 per sq. ft.
- Total Value: Rs. 183.6 Cr, making it the largest lease transaction in FIFC.
- Office Space Allocation: One entire floor will be leased by Oracle India.
Market Context:
- BKC Rentals: Range from Rs. 225-400 per sq. ft., among the highest in India and the Asia Pacific Region.
- Transaction Advisor: Ramesh Nair, Managing Director, Jones Lang LaSalle (JLL) India (West), who mentioned ongoing discussions with other BFSI players for leasing in the FIFC.
Notable Transactions in BKC:
- FIFC's Largest Sale: Six floors (2.97 lakh sq. ft. of office space) were sold to Citi Bank for Rs. 986 Cr in April 2012, marking the biggest commercial transaction in India.
Current Market Trends:
- Total BKC Stock: Now stands at 10.5 million sq. ft. with only 16% of office space remaining vacant.
- Office Space Absorption: According to a CB Richard Ellis (CBRE) report, prime office space absorption across key Indian cities increased by 37% year-over-year, though with a quarter-to-quarter decline.
- Dominant Markets: Bangalore, Chennai, Delhi-NCR, and Mumbai accounted for approximately 90% of the total absorption.