In a landmark pre-lease agreement, U.S. financial giant JP Morgan has secured over 116,210 sq ft of office space in Sumitomo’s commercial tower within Mumbai’s Bandra-Kurla Complex (BKC). The deal involves a long-term lease of 10 years.
The lease includes an initial 10-year term, with options to renew for up to three additional five-year extensions, potentially extending the total to 25 years.
The estimated rental outflow for the first 10 years is close to Rs 1,000 crore, with total payments over the 25-year term anticipated to exceed Rs 2,500 crore, making it one of the most significant long-term commercial leases in one of India’s most expensive real estate markets.
The office space will occupy the 11th and 12th floors of the under-construction property in BKC’s G Block, leased from Goisu Realty, Sumitomo’s Indian subsidiary, according to documents sourced from real estate data firm Propstack.
“The new office is expected to serve as JP Morgan’s headquarters for India,” said sources familiar with the situation.
Under the lease terms, JP Morgan India will pay a monthly rent of Rs 6.91 crore based on a carpet area rate of Rs 595 per sq ft, with a 15% escalation every three years. The company has made a security deposit of Rs 62.23 crore for this transaction, which was registered on June 12.
Sumitomo is developing a commercial tower that will feature six basements, a ground floor, and 12 upper floors on a prime 3-acre plot, which it acquired through a long-term lease deal with the Mumbai Metropolitan Region Development Authority (MMRDA) for over Rs 2,067 crore last year.
Goisu Realty obtained this land parcel through an 80-year lease agreement, emerging as the highest bidder in 2019, although the deal’s finalization took more than four years.
RealtyDailyNews’s email inquiries to JP Morgan and Sumitomo Realty & Development Co. went unanswered at the time of publication.
In August 2022, JP Morgan India leased over 1.16 million sq ft of office space at Nirlon Knowledge Park in Goregaon, Mumbai, through a long-term pact lasting over 10 years, with a renewal option for an additional 10 years. This was among the largest commercial real estate transactions by a multinational company in India.
India is solidifying its status as a strategic hub for U.S. corporations, with American firms enhancing their office presence across the country. From Mumbai to Bengaluru, they are significantly influencing the landscape of the Indian commercial real estate sector.
