Mumbai

Pharma major Novartis India to pick up 1 lakh sqft office space in Mumbaiís BKC

Marking one of the largest front-office commercial transactions in terms of space in the city so far in this year, Swiss multinational pharmaceutical major Novartis’ India arm has entered into an agreement to pick up over 1lakh sqft office space in a commercial project, Inspire BKC, in Mumbai’s secondary business district Bandra-Kurla Complex. Negotiations for this space had been going on for the past 6-8 months and the Letter of Intent (LOI) has finally been signed now after a thorough due diligence undertaken by Novartis India.

Novartis India has plans to shift its India headquarters from Sandoz House on Dr. Anne Besant Road in Mumbai’s plush Worli area where it has been housed for over 45 years to the new address.

The total tenure of the lease for the space spread over two floors in this new commercial project of Adani Realty is five years with the option to renew it for the next five years.

Novartis will need to pay lease rental at the rate of Rs 215 per sqft a month, taking the annual rental to nearly Rs 26 cr. The rentals will be revised after the first three years of the tenure. As per the terms of this transaction, the company will also get signage rights on the building.

The company is expected to start working on fit-outs soon and will be operating out of this facility by the end of this year, becoming the first large multinational anchor occupier in this building. Another pharmaceutical company based in BKC is Abbott India that bought over 4.35 lakh sqft space in Godrej BKC for Rs 1,480 cr in 2015.

With declining interest in the traditional central business district (CBD) of Mumbai, several corporations are establishing their front-office functions in the secondary business districts (SBDs) and moving back-office activities to the suburban markets.

In the recent past, we saw pharmaceuticals major Merck India moving its head office to Vikhroli from Worli, Siemens India also shifted one of its offices to Vikhroli from Worli. Volkswagen and DHL shifted their head offices to Andheri from Bandra. Dow Corning also relocated its India corporate office to Kanjurmarg, a suburb of Mumbai, from BandraKurla Complex, while Johnson & Johnson relocated to Jogeshwari from Tardeo in south Mumbai.

In the recent past, we saw pharmaceuticals major Merck India moving its head office to Vikhroli from Worli, Siemens India also shifted one of its offices to Vikhroli from Worli. Volkswagen and DHL shifted their head offices to Andheri from Bandra. Dow Corning also relocated its India corporate office to Kanjurmarg, a suburb of Mumbai, from BandraKurla Complex, while Johnson & Johnson relocated to Jogeshwari from Tardeo in south Mumbai.
 

Written by The Realty Paper


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