With infrastructure and connectivity at its best, BKC surpasses other hotspots to become a preferred destination
Investors around the globe are buying office assets in Mumbai’s Bandra Kurla Complex (BKC) providing the much-needed impetus to India’s real estate where home sales are still not impressive.
The commercial real estate of India registered top deals such as Blackstone Group LP’s purchase of the One BKC office building for Rs 2,500 crore. Blackstone-backed K Raheja Corp is also set to buy Citibank India’s former headquarters for Rs 395 crore.
Ankur Gupta, Senior Vice President of Brookfield Asset Management, said that BKC is a destination which the government has promoted as a finance centre for a long time. BKC is known as a place with modern office buildings.
“A global trend is that wherever there are modern office buildings coming up, you will see companies rushing to those places. Proximity to the airport and being strategically connected to the rest of the city make commercial sense for BKC.”
2018 witnessed Canada’s Brookfield Asset Management buying 1.25 million sq. ft. Equinox Business Park at BKC from Essar Group for Rs 2,400 crore. Tokyo-based Sumitomo Corp offered to pay Rs 2238 crore for a 3-acre plot in BKC. The deal is one of the largest in recent times.
A senior MMRDA Executive said that they have another 10 hectares left in BKC but the market is down and local developers are not willing to spend on buying land. However, the supply of office space is fast drying up at BKC.
According to property advisory JLL, the vacancy in prime office buildings at BKC has dropped from 13.4 percent in the fourth quarter of 2017 to 5 percent in the first quarter of 2019.
JLL data suggests that there is an increase in rentals for quality assets. Karan Sodi, Managing Director (Mumbai) of JLL India said that BKC has gradually become a prestigious destination from an office market perspective in recent years. It is well-connected and with additional infrastructure coming up, it will be on a par with other international business districts down the line.
Shobhit Agarwal, Managing Director and CEO of Anarock Capital said that firms are now moving out of Lower Parel to BKC.
Sunteck Realty Ltd, which has luxury residential projects in BKC, is now developing 2 to 2.5 million sq. ft of office space in the vicinity. Sunteck Chairman and Managing Director Kamal Khetan said the strategy is to build, lease and own these assets.
Source: HT Estates
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