Sanofi India Acquires 150,000 Sq. Ft. of Office Space in Powai, Mumbai
Pharmaceutical Major Sanofi India plans to shift its HQ.
Overview of the Deal
MUMBAI: Sanofi India, a subsidiary of the French pharmaceutical major, has purchased 150,000 sq. ft. of office space from L&T Realty for Rs.220 Cr. This transaction stands as the largest of its kind in 2013.
Shifting Headquarters
Sanofi India is planning to relocate its headquarters from Andheri to Powai once the new building is completed. The acquisition of this new office space is part of the company's expansion strategy.
Financial Arrangements
Sanofi will make the payment in installments, linked to the construction progress of the building. The deal was recently finalized, according to two individuals with direct knowledge of the transaction.
Project Details
The construction of a 10-storey office space has already begun and is expected to be completed within two to three years. This building is part of L&T Business Park, currently housing JP Morgan and L&T Infotech.
Buying 150,000 sq. ft. of office space, Sanofi India now plans to expand its business in India.
Market Trends
The transaction reflects a trend among MNCs and Indian companies to expand their operations, taking advantage of the current sluggish real estate market. This expansion is expected to have a significant impact on the commercial realty sector.
Current Headquarters
Sanofi India's current headquarters is located in Andheri, with a space of 65,000 sq. ft., built on a 1.6-acre land. The old headquarters may be sold once the new facility is ready.
Sanofi India's Expansion
Sanofi India operates through five entities: Aventis Pharma (now Sanofi India), Genzyme India, Shantha Biotechnics, Sanofi Pasteur India, and Sanofi-Synthelabo (India).
Conclusion
Both Sanofi India and L&T Realty declined to comment on the deal. Jones Lang LaSalle India, the transaction advisor, also remained silent about the details of the transaction. The acquisition of the new office space signifies Sanofi India's commitment to expanding its business in India.