Piramal Capital and Housing Finance sells two office spaces in Mumbai for Rs 110 crore

Recent property deals indicate that there is still strength in the A-grade commercial market in the financial capital, despite the slowdown.

Piramal Capital and Housing Finance Ltd has sold two office spaces at TCG Financial Centre in Bandra Kurla Complex (BKC), spread across a carpet area of 18,764 sq ft for Rs 110 crore, to TCG Urban Infrastructure Pvt Ltd, documents accessed by CRE Matrix, a real estate data analytics firm showed.

This is a buyback deal. In 2013, TCG Urban Infrastructure Holdings Pvt Ltd had sold the same units to Dewan Housing Finance Corporation (DHFL) for Rs 95 crore, the agreement for assignment showed.

The buyer has paid a stamp duty of Rs 6.60 crore, the documents showed. The agreement was registered on March 28, 2023.

It comes with exclusive rights to use 31 car parking slots, as per the document.

Moneycontrol has sent queries to Piramal Capital and Housing Finance Ltd and TCG Real Estate and is awaiting a response.

In 2021, Piramal Capital and Housing Finance Ltd (PCHFL) had merged with Dewan Housing Finance Corporation Ltd (DHFL) pursuant to the reverse merger as contemplated under the scheme of arrangement provided under the resolution plan.

Last month, Larsen & Toubro sold pre-leased office space spread across three floors in L&T Business Park-TC-IV in Mumbai’s Powai suburb to National Realty for around Rs 81 crore.

Bank of China had leased an office space spread across an area of 9,300 sq ft at a rent of Rs 500 per sq ft per month at Maker Maxity, Mumbai, for five years. This indicates that there is still strength in the A-grade commercial market in the financial capital, despite the slowdown. Real-estate brokers told Moneycontrol that this deal is an outlier in terms of commercial rentals as the average rent for Grade A commercial space in top-end commercial buildings in core Bandra-Kurla Complex is in the range of Rs 260-320 per sq ft per month. The average rent in Maker Maxity is in the Rs 445-475 per sq ft per month range.

The BKC is one of the costliest commercial districts in India. The per sq ft rate here goes even up to Rs 1 lakh in rare cases from as low as Rs 20,000 per sq ft. It houses the headquarters of several firms such as the National Stock Exchange, Bank of Baroda, Indian Oil, the Reserve Bank of India, and the US Embassy.

According to an analysis by JLL, the office space take-up across the sector in January 2022 stood at 1.7 million sq ft. This means that office leasing was still 93.1 percent higher in January this year compared with the previous year. But the IT/ITeS category still remained the largest driver of overall market activity in January, accounting for 28 percent of total market activity, thanks to one large transaction and a few smaller ones. It accounted for 22 percent of market activity in January 2022 and 29 percent in December 2022, the report noted.