Making It Big In The Commercial Space: Top 5 Deals Of 2015
The residential market in India might have seen a slow growth last year but the commercial and office spaces segment saved the day for real estate in India. Apart from a fair increases in prices and rentals across cities, this year also saw some mega deals getting signed.
PropGuide lists the top five commercial property deals:
Carnival Group buys L&T Elante Mall for Rs 1,785 cr
In September, Shrikanth Bhasi-promoted Carnival Group bought Larsen & Toubro's Elante, the largest mall in Chandigarh. Spread over 20 acres, the mall houses a luxury hotel by Hyatt, a central courtyard and office spaces. The retail space of the mall is around 1.5 million sq ft, and earns an estimated annual rental yield of over Rs 100 crore. The mall has an eight-screen multiplex, hypermarkets and departmental stores. Located at Chandigarh's Industrial Area Phase-I, Elante Mall is easily accessible from adjoining Mohali (Punjab) and Panchkula (Haryana) areas.
Abbott buys into Godrej's office space for Rs 1,479 cr
American pharma major Abbott bought over 400,000 sq ft of office space from Godrej Properties in Mumbai. This is the single-largest end-user commercial property deal so far. The space was bought by Abbott in Godrej's new commercial tower at the Bandra-Kurla Complex, the priciest commercial business district of the city. The building is expected to be ready for occupancy by 2016 and the space bought by Abbott will house over 1,500 employees.
Flipkart seals mega-rental deal with Embassy Office parks
In May this year, e-tailer Flipkart signed a deal to leased two million sq ft of office space from Embassy Group in Bengaluru. The e-commerce major agreed to lease the space for 20 years at Embassy Tech Village at the Outer Ring Road. The monthly rent would be about Rs 50 per sq ft. The Phase-I of the office space of around 1.5 million sq ft will be delivered in two years.
Housing.com leases commercial space with Hiranandani
Fast expanding e-commerce business Housing.com leased 150,000 sq ft of office space by Hiranandani Group at Powai in Mumbai. The leasing agreement will include office spaces at two under-construction towers, Winchester and Spectra, of the group. The five–year agreement is expected to net a monthly rent of around Rs 1.5 crore.
Trafigura seals lease agreement with Radius
Global commodity trading and logistics firm Trafigura signed a 10-year lease for 100,000-sq ft office space at a building by Radius Towers in the Bandra-Kurla Complex. The office space is spread across two floors of the building. The deal also has a 15 per cent annual rent increase clause as part of the agreement.
Apart from these, there are many more commercial deals that are yet to be officially executed. The most noteworthy of them is E-commerce portal Amazon's 1.3 million square feet deal with Bagmane Tech Centre in Bengaluru. Financial services major Wells Fargo is also looking to lease over one million sq ft of office space to expand its back office operations in that city.