In a big ticket rental deal, Morgan Stanley has leased 86,200 sq ft office space spread over two floors in a commercial tower in Mumbai’s Worli locality for a period nine years.

According to documents provided to SquareFeatIndia by Propstack, the deal was signed on October 21 this year.

Morgan Stanley will be paying lease of Rs 325 per sq ft per month for the first year. The project in which this lease deal has taken oka r is Altimus, which is currently under development and Morgan Stanley’s office will be on 39th and 40th floor of the commercial tower.

The monthly rent payable in respect of the Premises for each year succeeding the first year from shall be the rent payable in-respect of the immediately previous year as escalated by 4.25 per cent per annum.

Morgan Stanley has paid an upfront deposit of ₹8.4 crore.

According to market sources the commercial project is spread over a land parcel of over 3 acres and will have more than 1 million sq ft leasable area. This tower, when developed will be one of the tallest office towers in South Mumbai.

“Over the last few years BKC (Bandra Kurla Complex) has emerged as the front office hub as corporates shifted from Nariman Point (erstwhile CBD). This was primarily due to more modern buildings and better proximity to Human Resources. However with Bandra – Worli sea link, Worli micro market was always an alternate option especially at comparatively lower rents. Corporates who are considering a front office move and are as yet undecided will start looking at Worli more closely,” said Raja Seetharaman co-founder of Propstack.

Also Read: JP Morgan picks 1.16 million sq ft in Goregaon for 10 years on lease along with 1,130 car parks

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In one of Indians big ticket lease deal, a 2.39 lakh sq.ft. of land area was leased out for a whopping Rs 3.57 crore per month for a period of 258 months. Amazon Data Services India Pvt Ltd rented a 2.39 lakh sq.ft. space for a period of 258 months in Powai.

The rental figure and the rented area both are huge and and in many ways amongst the biggest rental deals for the year 2022. The premises rented is a land parcel in Powai owned by Larsen and Toubro Ltd.

According to registration documents provided by Propstack the deal was signed in June this year. A stamp duty of Rs 5.64 crore was paid for the registration of the lease deed.

The lease deal is for a total of 21.6 years, which means 258 months of these 24 months or two years is rent free.

The deposit paid for the land lease is Rs 99 crore, whereas the lock-in period for the lease deed is 180 months.

The rental also will see an escalation as the time passes. According to documents it is clear that Amazon would be building a data centre on the premises of the land they have leased from L&T.

A detailed email sent to Amazon and L&T seeking their response on the deal got us no response.

Some precious big ticket rental deals
Before this in July 2020 during the Pandemic Morgan Stanley had concluded negotiations and reached a deal to lease up to 1.1 million sq.ft. office space for 9.5 years from Oberoi Realty in Commerz III, Goregaon.

This year too according to reports Morgan Stanley leased an additional 3.35 lakh sq.ft. The total rent is nearly Rs 2,000 crore for the entire tenure of 9.5 years.

In July 2020 Godrej Fund Management leased 2 lakh sq.ft. office space to A.P. Moller – Maersk’s business units in Mumbai. The space is located in Godrej Two, Vikhroli. The lease amount was Rs 13.09 crore.

Also Read: Oberoi Realty Ltd signs 18 acre Thane land deal

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By Varun Singh

Real estate developer, Lodha closed a deal with Morgan Stanley Real Estate Investing (MSREI) MSREI to, develop approx. 1.9 mn sq ft at Palava Industrial and Logistics Park (PILP). This would entail an investment of approx. Rs 600 Cr for development of Grade-A warehouses across 72 acres land parcel at PILP.

Palava Industrial and Logistics Park in Mumbai is an integrated Industrial and Logistics Park with high-quality infrastructure.

Morgan Stanley Real Estate Investing (MSREI) is the global private real estate investment management arm of Morgan Stanley. With decades of experience in investing internationally, MSREI is uniquely positioned to execute core and opportunistic strategies globally.

PILP continues to emerge as the preferred partner for multinational corporations looking to invest in warehousing and industrial space solutions in Mumbai. The park has already cemented a number of key deals, with a strong pipeline of marquee clients in the e-commerce, FMCG, and light manufacturing sectors. On this transaction, Lodha would further act as the development manager for the project, responsible for leasing, project development, and asset management.

PILP is located close to JNPT, the upcoming Navi Mumbai International Airport, and the industrial hub of Taloja MIDC and provides flexible and scalable growth options to companies. It is part of the 4,500-acre Palava city that provides a comprehensive and established ecosystem including high-quality residences, social housing, world-class education, and healthcare.

Shaishav Dharia, CEO, Townships, and Rental Assets, Lodha, said, “Our marquee acquisitions and key partnerships for PILP have helped us establish a solid track record in the logistics sector. Through this formidable collaboration, we will leverage our
development expertise along with MSREI’s industrial know-how as we continue to expand and enhance this best-in-class industrial park. These are exciting yet crucial times for us as we expect more such strategic partnerships in the near future.”

Vineet Sekhsaria, Executive Director and Head, Morgan Stanley Real Estate Investing India, said, “We believe that Palava will soon become the most strategic location for logistics and industrial development in Western India. Given excellent infrastructure with multiple connectivity routes to the city and upcoming trans harbor sea-link, Palava will have benefits, unlike any other location. In Lodha, we have an excellent partner, and they have built a terrific team for execution. We look forward to the development
of a world-class industrial project.”

Also Read: Lodha clocks over Rs 550 crore sale in July 2020

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By Varun Singh

Morgan Stanley and Oberoi Realty today announced that they have concluded negotiations and reached a deal for Morgan Stanley to lease up to 1.1 million square feet office space for 9.5 years from Oberoi Realty.

Morgan Stanley has decided to consolidate Morgan Stanley’s Mumbai Global In-house Centre (GIC) operations to a single campus in the city.

The new campus will be located at Oberoi Realty’s Commerz III building in Goregaon and will be ready in 2023.

Commenting on the announcement, Robert Rooney, Global Head of Technology, Operations and Fusion Resilience, Morgan Stanley, said, “The GICs are an integral part of our global business and they allow us to operate more efficiently and effectively as a Firm. We believe that bringing together our Mumbai GIC operations into one centralized campus will serve as a catalyst to creating further agility and synergy across all the GIC functions. The investment is a testament to the Firm’s commitment to India and our staff.”

Vikas Oberoi, CMD, Oberoi Realty, said, “Our relationship with Morgan Stanley goes back to 2007 and we are delighted to have them as our anchor tenant in this world class building. This is one of the largest office space transactions ever and proves our ability to grow the commercial vertical in the coming years. We are seeing major consolidation across all segments in the industry and well-capitalized players like us with a proven track record will continue to thrive in the toughest of circumstances. Our commitment to our annuity portfolio remains strong while we continue to capitalize on opportunities in the residential sector.”

Commerz III is a 2.3 Mn sq. ft LEED certified mixed-use building with state-of-the-art infrastructure and a part of Oberoi Garden City (OGC). Sprawling across 80 acres, OGC has residential, retail, hospitality, commercial developments and the Oberoi International School.

“Attracting and retaining world-class talent continues to be a top priority for us. The new facility in Mumbai will provide us with the right infrastructure and resources to deliver an innovative workplace environment and promote increased productivity and engagement through efficient ways of working,” added Thomas Nides, Vice Chairman, Morgan Stanley.

Also Read: No provision in RERA to forfeit earnest money

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