Tata Digital has renewed its lease for the iconic Fort House building in Mumbai's historic Fort district for the next three years, in a significant deal with Dawat-e-Hadiyah, a charitable trust of the Dawoodi Bohra community. The agreement ensures Tata Digital's headquarters remains at Fort House, with a mandatory one-year period and a total lease cost of INR 249 crore, or INR 83 crore per month for the 1.5 lakh square foot office space. This renewal underscores the high demand for premium office space in Mumbai's central business district and highlights Tata Digital's commitment to its operations and growth within the Tata Neu ecosystem.
In a significant deal for Mumbai's historic Fort district, Tata Digital, the digital arm of the Tata Group, has secured its headquarters for the next three years. The company renewed the lease for the iconic Fort House building, a prominent landmark with a rich past.
Under the agreement with Dawat-e-Hadiyah, a charitable trust representing the Dawoodi Bohra community, Tata Digital will continue to operate from Fort House for a total of 36 months. This lease renewal includes a mandatory one-year period, providing stability for Tata Digital's operations. The monthly rent for the 1.5 lakh square foot office space is set at approximately INR 83 crore, translating to a total commitment of INR 249 crore over the entire lease term.
Fort House boasts a fascinating real estate history. Previously owned by the Videocon Group, the property changed hands in 2017 when Dawat-e-Hadiyah acquired it for roughly INR 300 crore. This acquisition marked a significant moment for the Dawoodi Bohra community in Mumbai.
The renewal of the Fort House lease is significant for a few key reasons. Firstly, entire buildings in Mumbai's Fort area are rarely available for lease, making this deal a secure and spacious headquarters for Tata Digital in a prime location. Secondly, the high monthly rent of INR 83 crore reflects the prestige associated with Fort House and its strategic position in the heart of Mumbai's business district. Finally, Tata Digital's substantial upfront payment of over INR 215 crore as a security deposit underscores the value and importance they place on this property for their ongoing operations.
The lease renewal allows Tata Digital to focus on its core business of developing and managing consumer-centric digital products within the Tata Neu ecosystem. This includes overseeing prominent online ventures like Bigbasket, Tata 1mg, and Tata Cliq. With a secure headquarters for the next three years, Tata Digital can continue to drive innovation and growth in the Indian digital landscape.
The Fort House deal also brings attention to the unique dynamics of Mumbai's Fort micro-market. Limited availability of large office spaces and high rental values characterize this area. This transaction highlights the ongoing demand for premium office space in Mumbai's central business district.
While both Tata Digital and Dawat-e-Hadiyah have not responded to requests for comment, the Fort House lease renewal signifies a strategic move for both parties. Tata Digital secures a well-located headquarters, while Dawat-e-Hadiyah benefits from a high rental income on this prestigious property. The story of Fort House, both past and present, continues to be a fascinating chapter in Mumbai's real estate history.
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