ICICI Prudential Life Insurance has signed a deal with Parinee Group to buy the entire floor of Crescenzo building in Mumbai’s financial district Bandra-Kurla Complex (BKC) for Rs 147 cr. The agreement is concluded at a rental yield of 7.25 per cent.
The acquired space area is about 35,000 sq. ft. and bought at the rate of Rs40,960 per sq. ft. on carpet area basis. The floor is currently on lease by Tata Communications at a rental rate of Rs177 per sq. ft. per month.
The next step of ICICI Prudential has not been revealed as to whether the acquired floor is for the investment or moving in.
“There is a very good demand uptick for commercial real estate with a lot of money flow chasing limited Grade A Office Spaces,” says Vipul Shah, Managing Director, Parinee Group.
It has been witnessed that the ultra high net worth individuals (HNIs) and the investors have shown a great interest in the commercial market as the demand for quality office at BKC has gone higher than the supply. On the other hand, the residential sector has faced a decline from last two to three years, according to Abhishek Tiwari, Founder, CRE Matrix.