Federal Bank has acquired a 1.01 lakh square feet office space across five floors in the VIOS Tower, Wadala, Mumbai, for approximately INR 330 crore, marking a strategic move to enhance its urban presence. This purchase, including 145 car parking spaces, aligns with the bank's growth trajectory, as it reported a record net profit of INR 1,057 crore for the quarter. The VIOS Tower, part of the New Cuffe Parade project, reflects a broader trend of financial institutions consolidating operations in central hubs due to rising demand for office spaces. This acquisition underscores the evolving dynamics of Mumbai's commercial real estate market.
Federal Bank has acquired a large office space spanning five floors in the VIOS Tower, located in the Wadala locality of central Mumbai. The transaction, valued at approximately INR 330 crore, adds to the bank's ongoing efforts to enhance its presence in key urban markets.
The newly purchased office space totals over 1.01 lakh square feet, covering the 12th to 16th floors of the commercial tower. This deal was finalised with NCP Commercial, an entity of Varde Partners, a global investment firm. In addition to the office space, Federal Bank now has exclusive access to 145 car parking spaces within the building. The deal was officially recorded earlier this week, with a stamp duty payment of INR 19.77 crore.
This acquisition comes at a time of increased demand for office spaces in Mumbai, particularly in areas surrounding the Bandra-Kurla Complex (BKC). Real estate consultancy firms report that low vacancy rates in BKC have prompted businesses to explore office options in peripheral locations, such as Wadala, Kalina, and Equinox. This trend illustrates a broader shift among various financial institutions aiming to consolidate their operations within central commercial hubs in major cities across India.
For Federal Bank, this acquisition aligns with its strategic direction. As of September, the bank reported a total business volume exceeding INR 4.99 lakh crore and achieved its highest-ever net profit of INR 1,057 crore for the quarter, reflecting a year-over-year increase of 10.8%. These financial results underscore the bank's growth trajectory and its commitment to expanding in high-potential markets like Mumbai.
The VIOS Tower is part of the mixed-use integrated project known as New Cuffe Parade, which includes residential, office, and educational spaces. This project has attracted various large tenants, with notable names like Tata International and G.MM Pfaudler occupying office spaces. Varde Partners purchased the rights to this commercial tower, along with the entire project, from Macrotech Developers for INR 1,100 crore back in December 2019.
Built in 2018, the VIOS Tower encompasses a total of 827,000 square feet of office space across its 29 floors, situated within a 22-acre development area. The strategic selection of this location not only signifies Federal Bank's ambitions but also highlights the ongoing evolution of Mumbai's commercial real estate market. As more firms navigate the competitive landscape, acquiring prime office spaces is becoming increasingly critical for enhancing operational efficiency and maximising business potential.
As this acquisition unfolds, it will be interesting to observe how Federal Bank leverages its new space to further its business goals and how this trend of consolidation among financial institutions will shape the commercial real estate landscape in Mumbai and beyond.
Advertisement
Facebook
Whatsapp
