Bollywood icon Amitabh Bachchan has leased four commercial units totalling 10,800 sq. ft. in Mumbai's Oshiwara area to Warner Music India Limited for an annual rent of Rs 2.07 crore. The five-year lease, beginning March 2024, will get Bachchan a revenue totalling over Rs 11 crore for the entire tenure. Bachchan had purchased these units in August 2023 for a total of Rs 29 crore. Bollywood stars, including Kartik Aryan, Manoj Bajpayee and Ajay Devgn, investing in commercial spaces for higher rental yields reflects a growing trend. Commercial properties offer 6-10% gross yields, outperforming residential real estate, making them attractive investments for high-net-worth individuals like Bollywood celebrities.
Bollywood actor Amitabh Bachchan has rented out four commercial units measuring around 10,800 sq.ft. in the Oshiwara area of Mumbai for a yearly rent of Rs 2.07 crore and a security deposit of Rs 1.03 crore. The commercial space has been rented to Warner Music India Limited for five years. The annual rental starting the fourth year will increase to Rs 2.38 crore. The tenant will be paying total rentals of over Rs 11 crore through the entire lease tenure.
Bachchan had purchased the above office spaces in Lotus Signature Building, off Veera Desai Road in Oshiwara in August 2023. The four units were purchased by Bachchan for Rs 7.18 crore each, around 29 crores in total.
Bachchan has rented the four units with a lock-in period of three years and 12 parking lots. The stamp duty paid for the deal is Rs 2.88 lakh and the same was paid on November 30, 2023, according to the documents accessed by Propstack.com. The lease will be operative starting from March 2024.
Along with Bachchan, Kartik Aryan, Ajay Devgn, Manoj Bajpayee and Sarah Ali Khan also have purchased office spaces in the same office building, reaffirming the trend of several Bollywood stars investing in commercial properties instead of residential ones for better rental yield.
In the past, Bollywood actor Salman Khan leased out 27,650 square feet (sq ft) of space spread over four floors to TNSI Retail Private Limited, a subsidiary of Future Retail Limited, in Mumbai, at a rent of around Rs 89.6 lakh per month in 2022.
In 2021, director Karan Johar leased out two commercial properties owned by him in the name of Dharma Productions for a rent of Rs 17.56 lakh and Rs 6.15 lakh per month.
Real estate continues to stand out as a top choice for investments among high-net-worth individuals. Bollywood figures are actively acquiring properties, not just for personal use, but also as lucrative investment ventures.
The major reason for this trend of Bollywood stars investing in commercial real estate is the annual rental yield compared to residential real estate. Rental yield is the amount the property owner receives annually by renting out a property. Commercial assets have a higher rental yield than residential properties, according to experts. Commercial properties like offices, retail, and warehouses usually have gross yields in the range of 6-10% in metro cities, according to CBRE India, a real estate consultancy firm.
The Bachchan family owns several properties in Mumbai. In November, Amitabh and Jaya Bachchan gifted their Pratiksha bungalow in Juhu, Mumbai to their daughter Shweta Nanda. This property was divided into two plots and transferred through gift deeds. One measured 9,585 square feet and was valued at Rs 31.39 crore while the other was 7,254 square feet and was worth Rs 19.24 crore.
Bollywood legend Amitabh Bachchan's strategic leasing activity, alongside industry peers, reflects the lucrative investment potential in commercial properties compared to residential assets. Such deals underscore the continued allure of real estate among high-net-worth individuals, with Bollywood's elite actively leveraging their investments for both personal and financial gains.
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