Earlier this month, Byju's had raised Rs 2,200 crore or about $300 million from investors, valuing it at about $18 billion. (Image: Shutterstock)
Online education firm Byju’s has leased an office space spread across 5,701 sq ft in Mumbai’s Andheri East area for Rs 13.9 lakh per month for five years, documents accessed by CRE Matrix, a real estate data analytics firm, showed.
The transaction was executed and registered on October 13, 2021, they showed.
The company is continuing its fundraising spree. Earlier this month, it had raised Rs 2,200 crore or about $300 million from investors, valuing it at about $18 billion, regulatory filings had indicated.
The firm has leased unit No. 503 in a building called Satellite Gazebo located on Guru Hargovind Marg in Andheri East, Mumbai.
The landlord of the office space is Advanced Realty Pvt Ltd and the tenant is Think & Learn Pvt Ltd, the documents showed.
Think & Learn Pvt Ltd does business as BYJU, and provides online educational services.
The office space comes with six car parkings.
The tenure of the leave and licence agreement is five years from October 13, 2021, to Oct 12, 2026.
In the first year the rent is Rs 13.9 lakh, the second year it is Rs 14.5 lakh, the rent in the third year will be Rs 15.3 lakh, in the fourth year it is expected to increase to Rs 16 lakh and in the fifth year it will be Rs 16.7 lakh, the documents showed.
The security deposit for the first three years is Rs 79.8 lakh and Rs 91.7 lakh in the following two years, the documents said.
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There was no response from either Advanced Realty Pvt Ltd or Think & Learn Pvt Ltd.
Local brokers said that the ongoing average rentals for commercial space in Andheri East are around Rs 90 to Rs 120 per sq ft per month. However, depending on the grade of the building, occupier profile, parking availability, connectivity, and other factors, many leases are being concluded at rentals higher than the micro-market average.
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On September 8, 2021, Apple India Private Limited had renewed its lease for 15,925 sq ft of commercial space spread across three floors from Agni Commex LLP for a period of almost five years in Mumbai. The project is located in Mumbai’s Bandra-Kurla Complex (BKC) business district.
Karan Johar, Bollywood film screenwriter, director and producer, had renewed the leases of 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 respectively on August 25, 2021. The offices are located in Supreme Chambers, Off Veera Desai Road in Andheri West, Mumbai.
According to media reports, HDFC on September 26, 2021, renewed the lease for an entire office building that houses its head office on Dr Annie Besant Road in Mumbai’s Worli area at a monthly rental of Rs 1.45 crore for 36 months.
According to Anuj Puri, chairman - ANAROCK Group, when the pandemic hit the country in March 2020, the entire nation went under a strict lockdown and the future of commercial offices looked bleak. However, during the past 10 months, the vaccination drive has gained significant momentum and so as life comes back to normalcy post the second wave, offices are re-opening and employees are being called to offices. To secure the best deals amidst the current market – which is occupier friendly - renewals and fresh leasing are gaining pace across the nation.
Leasing activity in the commercial real estate office market is expected to improve from January 2022 when select corporates may take a relook at their space requirements before calling employees back to offices, and international travel may pick up on increased Covid-19 vaccinations, an analysis by ICICI Securities has said.
The mass vaccination drive and unlocking of the economy have aided in the revival of the office market. This has led to India’s net office absorption touching 5.86 million sq ft in the July-September quarter, a jump of 48 percent when compared to the previous quarter and an 8 percent year-on-year growth in major cities, according to JLL’s Office Market Update Q3, 2021.
The net absorption recorded in Q3 2021 surpassed the net absorption recorded in Q1 2021 by 12 percent which paint a clear picture of improved market sentiments and growing confidence among occupiers, the report said.