HDFC Bank leases 2.17 lakh sq ft office space in Noida for 18 years; monthly rent @ Rs 1.47 crore

Last year, HDFC Bank leased over 2.5 lakh sq ft of office space in Navi Mumbai’s Airoli locality for 10 years.

HDFC Bank has leased 2.17 lakh square feet (sq ft) of office space in Noida for 18 years, for a starting monthly rent of Rs 1.47 crore, documents accessed by CRE Matrix showed.

The banking major has leased the Ground to the 5th floor, and 7th to 15th floor, in Ace Capitol, Tower - I Sector - 132, Noida, the documents showed.

The sub-lessor is Mango Infratech Solution LLP, a subsidiary of ACE Group, while the sub-lessee is HDFC Bank Ltd, they showed.

The floors have been leased for 18 years ― from May 15, 2023, to May 14, 2041, the documents showed.

The company has paid a security deposit of Rs 8.87 crore, the documents showed.

The sub-lessor will have to provide 376 car parking slots free of cost for the exclusive use of the bank, the documents showed.

The agreement was registered on March 24, 2023.

It comes with a rent escalation clause of 15 percent every three years. From the fourth year to the sixth year, there will be an increase of Rs 1 per sq ft of carpet area in monthly rent, and from the seventh year onwards, there is a 15 percent escalation for every three years, the documents showed.

Last year, HDFC Bank leased over 2.5 lakh sq ft of office space at K Raheja Corp-backed Mindspace Business Parks REIT’s business park in Navi Mumbai’s Airoli locality for 10 years.

Emails have been sent to both HDFC Bank and Ace Group for comments.

Global recessionary concerns may delay recovery of demand for office space leasing of 30-33 million sq ft (msf) in 2023, according to a report by real estate consultant Colliers.

In an optimistic scenario, India’s office sector is likely to see 35-38 msf of gross leasing in 2023, the report added.

The report, published in collaboration with the Federation of Indian Chambers of Commerce and Industry (FICCI), suggests that while the office market in 2023 looks uncertain, leasing activity is likely to pick up in the second half of the year, led by global capability centres, banking, financial services and insurance (BFSI) companies, and start-ups with sound business models.