Consumer durables firm Samsung India Electronics Ltd has signed a deal to take up around 1 lakh sqft of office space on lease to set up its new corporate office at Oberoi Realty Ltd’s commercial property Commerz II in Goregaon suburb of Mumbai, three people aware of the development said.
The Korean company will pay Rs 135 per sqft as monthly rental with an advance payment for six months, said the first person mentioned above, adding that the deal has been signed for the next five years.
Earlier in 2016, Samsung signed a deal to lease 3.5 lakh sqft of space at Two Horizon Center, a premium office building developed by DLF Ltd at Gurugram in the National Capital Region. DLF rented the space that Samsung currently uses as its Indian headquarters for Rs140 per sqft per month, in one of the largest recent commercial property lease deals
In September 2016, the world’s largest generic pharmaceuticals company, Teva Pharmaceutical Industries, closed a deal for around 2.5 lakh sqft of space in the same building (Commerz II) to set up its India headquarters. This was one of the largest commercial leasing deals that closed December 2016 in the vicinity of in the vicinity of other information technology companies like Tata Consultancy Services (TCS).
This is the second commercial building developed by Oberoi Realty at Goregaon. As per information available on the company’s website, over 27% of the building had been leased out until the second quarter of this financial year. The first Commerz building, which is part of a mixed used development in the area, has been fully leased out.
The commercial property market has seen a pick-up in the past year as demand for office space from multinational, information technology (IT), pharmaceutical firms and start-ups has risen. Steady lease rentals, high absorption levels, inadequate supply and global investor interest have boosted India’s commercial real estate sector, even as the country’s residential property market remains in a slump.
By Baishakhi Dutta
