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Representative ImageTata Group’s engineering, procurement and construction company Tata Projects has picked up over 1.2 lakh sq ft office space Mumbai’s Powai suburb through a long-term lease to set up its headquarters that can accommodate around 1,000 employees, said persons with direct knowledge of the development.The company has leased the space in commercial tower Cignus Powai, which is a project of K Raheja Corp’s hospitality business Chalet Hotels, for a total term of five years. The Tata Son’s subsidiary will be paying rentals of nearly Rs 86 crores through the entire tenure of the lease.”While the company has leased office space spread across two floors under this deal, it may consider picking up one more floor for further growth and expansion plan. As per the agreement, the lease has a lock-in period of three years and standard clause of rental escalation,” said one of the persons mentioned above.The commercial real estate market in India’s major cities is transforming due to changing company needs, rapid infrastructural development, and evolving workplace norms, as recent lease deals signal the creation of new hotspots drawing firms and investors.“India’s commercial property market is witnessing a transition in favour of newer quality assets of established developers and institutional landlords, and provides amenities helping tenants offer their employees a healthy work and leisure balance. We have been increasingly noticing lower vacancies and higher premium attached to quality Grade A assets, and we believe that this premium will only rise in the future,” said Gautam Saraf, MD – Mumbai, Cushman & Wakefield.Engineering and construction major Larsen & Toubro (L&T) has been operating from Powai for a long time. Big corporations such as Tata Consultancy Services (TCS) in addition to the prevalence of multinational companies like Accenture, Nomura, JPMorgan Chase, and Cognizant have strengthened Powai’s stature as a key business hub.ET’s email queries to Tata Projects and K Raheja Corp remained unanswered.The project is expected to be fully completed by the end of June and the Tata Projects is likely to move in by the third quarter of the year. The company has its current office in Powai only.Cignus Powai is a single commercial tower with 7.5 lakh sq office space across 16 floors situated adjacent to a five-star hotel, The Westin Mumbai Powai Lake, and Marriott Executive Apartments. It is part of a larger mixed-use project by Chalet Hotels and it is being developed and leased by K Raheja Corp’s commercial business. The insurance major has leased this office space – spread across four floors – for five years through a structured deal, a person cited earlier said, adding that the company will be paying a monthly rental of 91.5 per sq ft for the office space.

Published On Mar 22, 2024 at 08:54 AM IST

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