Bank of America has signed a 12-year lease for over 160,000 sq ft in Mumbai's Powai at K Raheja Corp's Cignus Powai, marking a significant expansion and relocation of its operations. The deal, valued at INR 350 crore, includes an option to add 100,000 sq ft, raising the total to 250,000 sq ft and the rental commitment to INR 600 crore. This move aligns with the BFSI sector's growing demand for office space in Mumbai, driven by technological advancements and metro connectivity. Bank of America plans to begin operations at the new site within 6-8 months.
Global financial services giant Bank of America has secured over 160,000 sq ft of office space within a commercial complex in Mumbai's Powai locality through a long-term lease agreement spanning 12 years. The deal includes provisions to accommodate future expansion to support the company's growth, according to individuals with direct knowledge of the transaction.
According to reports by ET Realty, the rental cost for this new office space, which covers three floors, will exceed INR 350 crore. Additionally, the agreement offers Bank of America the option to lease an additional 100,000 sq ft across two floors, increasing the total space to 250,000 sq ft and the rental commitment to INR 600 crore. The lease has been formalised with K Raheja Corp's Chalet Hotels for the office space located at Cignus Powai, facilitated through its subsidiary, BA Continuum India.
This move marks both a relocation and an expansion of Bank of America's 15-year-old facility in Mumbai's Andheri suburb. As a result of this new lease, BA Continuum India's total real estate portfolio in Mumbai will exceed 425,000 sq ft.
Sources familiar with the matter mentioned that the transaction was concluded and officially registered earlier this week. The lease agreement is effective immediately, with fit-out work expected to commence soon. Bank of America is anticipated to begin operations in the new office within the next 6 to 8 months.
The agreement is part of a broader trend of Banking Global Capability Centres (GCCs) increasing their presence in Mumbai, reflecting ongoing corporate growth in the region. The deal also highlights the emerging significance of the Jogeshwari-Vikhroli Link Road micro-market, which is becoming a preferred destination for the GCC sector. The area's forthcoming metro connectivity is expected to enhance talent mobility within the city.
The bank originally established its Global Business Services Unit, BA Continuum India, in 2004. It currently operates in five Indian cities: Mumbai, Hyderabad, Chennai, Gurgaon, and Gujarat's Gift City. BA Continuum India manages various functions, including technology, application development, legal, compliance, and tax support services, all of which support the bank's global operations.
Among the other key tenants in the commercial tower are Fedbank Financial Services, Tata Projects, and Redbrick Offices. The Banking, Financial Services, and Insurance (BFSI) sector is seeing a sharp rise in demand for office spaces, with leasing activity this year expected to surpass the record levels achieved in 2023. This surge is being driven by technological advancements, increasing digital adoption, a skilled talent pool, and changing market trends.
Global players have led this expansion, accounting for over 65% of the BFSI sector's activity in India. On average, these international companies have been responsible for two-thirds of all office space leased by the sector over the past six years.
In conclusion, Bank of America's expansion in Mumbai underscores the city's growing appeal for global financial services. With the anticipated growth of the BFSI sector and infrastructure improvements, Mumbai is becoming an increasingly strategic location for international firms. This move solidifies the city's position as a key hub for global business operations and talent mobility.
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