Hiranandani leases 19lakh sqft to TCS at Thane

Signaling the revival of the sluggish commercial real estate sales in the city, the largest deal in the office space has just concluded between TCS and Hiranandani. Software giant Tata Consultancy Services has signed on the dotted line to pick up 19 lakh square feet for its biggest office under one roof at Hiranandani Estate in Thane.

The parties have signed a 15-year contract with the option of a reset clause every three years. The monthly lease rental for the space is between Rs 50 and Rs 55 per sq ft. the annual lease rental for the entire 19 lakh sqft will be in the range of Rs 120 to Rs 130 crore. Hiranandani Constructions expects to deliver the office in the next 18 months which will have the capacity of accommodating over 30,000 TCS employees under one roof.

“We have given 19 lakh sq feet to Tata Consultancy Services on a long lease where they will set up a single beam IT Park. This will be the largest one in the country owned by a single company. The collaboration promises to generate employment for nearly 25,000 people,” said Niranjan Hiranandani while confirming the high profile transaction.

TCS has 19 offices in Mumbai and adjoining areas which include its headquarters, and 10 delivery centres and Thane.

15th MCHI-CREDAI property expo

MCHI-CREDAI’s property shows are something to look forward to every year. The 15^th edition promises to be better and on a much larger scale than before. The exhibition is scheduled from 15^th to 18^th of January at Highland Gardens, Dhokali in Thane west once again.

“Act before it is too late” is the tagline of this year’s expo. This theme has been chosen to highlight four aspects of the burgeoning Thane city – the amazing growth story, global office culture, mall mania and clean & green outdoor.

In these four days of 2016, real estate enthusiasts will be able to look at a broad range of properties across Thane as well as some areas in the periphery. The event will showcase luxury and affordable homes, Over 40 developers with more than 300 projects and nearly 20 banks and home finance institutions.

Excited about the scale of the expo this time, MCHI President went on to say that he plans to promote the city globally. A conclave is being organized during the exhibition where international property consultants have been invited to encourage investment in Thane at an international level.

“Thane is not just a dormitory city now, developers are endorsing it as an IT hub,” adding that “Tata Consultancy Services has already acquired 2 million sq ft of office space and others will follow suit. Good schools, world class hospitals and other utilities are the need of the hour and we are striving to equip Thane with all this.”

You can order your tickets for the 15^th real estate & housing finance Thane property expo on bookmyshow.com.

Global Rentals Chart

Owing to a vigorous demand from start-ups and e-commerce business, office rentals in major cities of India are experiencing a significant surge. The rising appetite for Indian commercial properties is attributed to about 67% of investments flowing into Indian real estate market from overseas which has been noted to be the highest among all other countries.

Indian cities of Mumbai, Delhi and Bangaluru have topped the global commercial property market with regards to annual rental yields as demand for commercial spaces has picked up in recent times. While Bengaluru topped the list with 10.5% annual yield, other cities like New York, Singapore, London, Tokyo and Hong Kong ranged between 2.9% and 7%, indicates a global survey of property consultant Knight Frank. Mumbai and Bengaluru have also featured among the list of top 5 global cities for future rental growth and the anticipated growth is nearly 22% and 16% for both cities respectively.

Currently, these cities are facing severe paucity of good quality office space in the face of strong demand which is creating an upward pressure on office rentals that is expected to scale up in the range of 6-7% in the next six months year-on year,” says Samantak Das, Chief Economist & National Director of Research, Knight Frank India.

Although the aggregate vacancy level of commercial spaces is at 17%, occupiers and investors are facing a challenge in procuring quality office spaces across prime business districts in the country where vacancy is in single digits.

The Indian commercial real estate sector is making a comeback after experiencing massive slump for over three years.  With a healthy pipeline and recent large ticket transactions, early signs of revival are being observed.

Big corporate occupiers are returning to the market hinting at an improved business sentiment. Bengaluru and Mumbai have been leading with these large transactions.   In May this year, while Tata Consultancy Services leased over two million sq ft of built-to suit space at Hiranandani Estate in Thane in Mumbai, Flipkart hired a 2-million sq ft custom-built office campus in Bengaluru.