HDFC Bank has secured an entire 8-storey office building with a total area of 400,000 sq ft in the Mindspace Airoli West complex, Navi Mumbai, under a long-term lease agreement for 10 years. The bank will pay over INR 320 crore in rent, including a 15% escalation every three years, as per agreements with Mindspace Business Parks REIT. The building, previously part of a special economic zone, will be central to HDFC Bank's operational expansion. The Airoli region continues to experience high demand from data centres and financial services, further driving leasing activity.
HDFC Bank has secured an 8-storey office building covering 400,000 sq ft in the Mindspace Airoli West commercial complex in Navi Mumbai through a long-term lease lasting 10 years, according to individuals familiar with the matter. The bank will pay rentals exceeding INR 320 crore, which includes a 15% escalation every three years, based on two separate agreements signed with the listed landlord Mindspace Business Parks REIT. This deal ranks as one of the largest office transactions completed this year.
The new office, comprising a basement, ground floor, and 8 upper floors, is expected to play a pivotal role in HDFC Bank's expansion and operational efficiency. The bank had already occupied space in the same complex in another building. One of the agreements, registered on November 13, sets the lease to commence on January 1, with the bank having paid a security deposit of INR 5.81 crore, which equates to six months' rent. The data was accessed through Propstack, a real estate data analytics firm.
Mindspace Business Parks REIT, backed by K Raheja Corp, has already obtained approval to convert this building into a non-processing area following the government's recent amendments to the Special Economic Zones (SEZ) rules, 2006, allowing partial and floor-wise denotification of SEZs. Other significant tenants in the Mindspace Airoli West complex include Dow, Accenture, IDFC, Princeton Digital, and Technimont.
As part of its post-merger strategy with HDFC, HDFC Bank has opted to sell several non-core real estate assets in key urban locations to streamline its property portfolio and generate additional liquidity to bolster its already strong financial position. Despite attempts, ET's email inquiries to HDFC Bank and Mindspace Business Parks REIT went unanswered.
Property consultants note that the Airoli micro-market is witnessing strong demand from data centres, financial services, Indian multinational companies, including banks, fintech firms, and IT services. The region is also emerging as a new hub for global capability centres (GCCs) due to its strategic location near submarine cable landing stations, stable power supply, availability of renewable energy, and robust infrastructure.
The Banking, Financial Services, and Insurance (BFSI) sector is experiencing a significant rise in office space demand, with leasing activity this year expected to surpass record levels set in 2023. This surge is driven by technological advancements, increased digital adoption, a skilled talent pool, and evolving market trends.
The lease agreement for the 8-storey office building in Mindspace Airoli West marks a significant move for HDFC Bank as it continues to expand its operational footprint. With a rental commitment of over INR 320 crore, this deal highlights the ongoing demand for commercial real estate in the Airoli region. As a key hub for data centres and financial services, Airoli is positioning itself as a strategic location for businesses in the BFSI sector and beyond. The move to streamline HDFC Bank's real estate portfolio post-merger demonstrates its focus on strengthening its financial position while meeting the growing demand for office space in Mumbai's thriving micro-market.
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