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Fidelity Group’s global investment firm Eight Roads Investment Advisors has picked up a sea-view front office spread over an entire floor in a commercial tower, Avighna House, in Mumbai’s plush Worli locality at record monthly lease rentals of Rs 561 per sq ft.
The firm has leased over 6,150 sq ft of usable office space in the tower for five years. The agreement includes a clause to escalate rentals by 9.75% every two years.
The deal assumes significance in the backdrop of the record per sq ft rentals attracted by any office property in the country’s most expensive market of Mumbai after a long gap.
Prior to this, in 2007, Barclays Bank had leased 15,000 sq ft office space at commercial tower CeeJay House in Worli at Rs 725 per sq ft a month. Avighna House is also located in proximity to CeeJay House on Dr. Annie Besant Road.
In November, ET had reported that Waterfield Advisors, an independent multi-family office and wealth advisory firm, had leased an entire floor in Avighna House at record monthly lease rentals of Rs 520 per sq ft. Eight Roads Investment Advisors’ office transaction has surpassed that benchmark.
ET’s email queries to Eight Roads and the project developer Avighna India remained unanswered, while JLL India declined to comment
Post 2008, the commercial property rentals had eased owing to improved supply of office stock in the country’s financial capital and, also due to moderation in demand for front offices from international banking groups following the global financial crisis. However, the demand has seen a steady growth since then.
Eight Roads is a global venture capital firm backed by Fidelity that helps entrepreneurs scale. It invests in broad sectors of technology and healthcare business. The company has presence in China, Europe, India and Japan, and its global platform has over 50 years of venture investing experience, $11 billion in assets under management (AUM), over 300 portfolio companies.
Recently, ?Eight Roads Ventures announced its first India-focused healthcare and life sciences fund of $250 million. The new fund will support 15 to 20 companies operating in the space, ranging from smaller investments to cheque sizes of up to $40 million.
Eight Roads Ventures India has a portfolio of nearly 60 companies and invests in the broad sectors of healthcare and technology. The fund has so far supported companies including Pharmeasy parent API Holdings, Nicotex brand owner Cipla Health, plant-based nutrition brand OZiva, employee healthcare platform eKincare, and dental clear aligner brand Toothsi, among others.
Worli has been known for housing offices of several financial and investment banking world majors including Credit Suisse, Lehman Brothers, Societe Generale and Hypo Bank. While Mumbai has not witnessed a deal at these rates in the recent past, these kinds of rentals were earlier witnessed in the business district of Bandra-Kurla Complex.
The recovery in commercial real estate, especially office spaces, after the Covid19 pandemic is getting broad-based as indicated by the rising number of small and mid-size leases and outright transactions across segments and key property markets.
The commercial office segment, which was significantly impacted by the pandemic, has made a strong comeback in the last 3-4 quarters, supported by strong economic growth, increased hiring, and a return to the office trend, keeping the office sector buoyant.
Listed Real Estate Investment Trusts (REITS) and realty developers with sizable office real estate portfolios have started witnessing increase in transactions for 10,000 sq ft to 50,000 sq ft and even boutique offices in addition to large transactions getting concluded.
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