Mumbai Office Spaces Sale: Piramal Capital and Housing Finance for 110 Crores


Recent property deals suggest that A-grade commercial real estate market in Mumbai remains strong, despite the market slowdown. Piramal Capital and Housing Finance Ltd recently sold two office spaces in the TCG Financial Centre located at Bandra Kurla Complex (BKC). The two office spaces spread across a carpet area of 18,764 sq ft were sold for an estimated cost of Rs 110 crore. This buy-back deal was initiated by the TCG Urban Infrastructure Pvt Ltd, the same entity that sold these offices in 2013 for Rs 95 crore. The agreement was registered on March 28, 2023, with the buyers having to pay a stamp duty of Rs 6.60 crore. Included in the purchase is the exclusive right to use 31 car parking slots.

Piramal Capital and Housing Finance Ltd (PCHFL) is a finance company that merged with Dewan Housing Finance Corporation Ltd (DHFL) in 2021, pursuant to the resolution plan. Other similar deals have been seen in the A-Grade commercial market during this time the most recent being that of Larsen & Toubro selling pre-leased office space to National Realty for Rs 81 crore and Bank of China leasing office space in Maker Maxity at Rs 500 per sq ft per month for five years.

The BKC is one of the most expensive commercial spots in India where the per sq ft rate can range from as low as Rs 20,000 to as high as Rs 1 lakh. Notable companies who hold their headquarters here include the National Stock Exchange, Bank of Baroda, Indian Oil, the Reserve Bank of India, and the US Embassy. According to an analysis by JLL, office space take-up across the sector in India in January 2022 stood at 1.7 million sq ft. This number is 93.1 percent higher compared to the year prior and is mostly backed by the IT/ITeS industry accounting for 28 percent of total market activity. The average rent for Grade A commercial space in these buildings is in the neighbourhood of Rs 260-320 per sq ft per month.

Overall, the data from these deals are reassuring and signify the increasing confidence investors and buyers have in the market’s ability to remain strong despite present global market conditions.