Barclays Bank Plc, a British multinational universal bank, has secured a sea-view front office space spanning two floors in a commercial tower in Mumbai’s prestigious Worli locality through a long-term lease spanning over 10 years. The India arm of the financial major will pay a lease totaling over Rs 306 crores for a total office space of 64,000 sq ft on the 32nd and 33rd floors of the Altimus office tower developed by K Raheja Corp’s subsidiary Whispering Heights Real Estate.
These offices will be utilized by Barclays India and Barclays Investments and Loans (India) Pvt Ltd. The lease agreement spans an initial period of five years, followed by an additional five years as per the renewal terms. Barclays India has made an upfront deposit equivalent to six months’ rent at the time of the deal registration, which took place last week.
The lease rental is set at Rs 320 per sq ft or over Rs 2.08 crore a month for the first year, with a 4.5% escalation every 12 months, according to documents accessed through FloorTap.com. The lease officially commences from January 1, with rent payments starting from July 1, 2024. As part of the deal, Barclays Bank has exclusive access to more than 51 car parking slots in the commercial tower.
Whispering Heights Real Estate, the lessor, is not entitled to terminate the lease agreement throughout the entire term, while the lessee, Barclays Bank, will have a lock-in period of two years. The commercial project, spanning over 3 acres, has a leasable area of over 1 million sq ft and has recently received its occupancy certificate. Property consultants indicate that several entities from the banking and financial services sector are in talks to lease office space in the complex, which stands as one of the tallest office towers in South Mumbai’s central business district.
Barclays Bank declined to comment on the story, and an email query to K Raheja Corp from ET remained unanswered. Recently, Morgan Stanley, an American multinational investment management, and financial services company, also secured office space in the same commercial tower through a long-term lease of over 9 years. In 2023, India’s top eight office property markets witnessed buoyancy in demand, reflecting strong occupier activity, showcasing the country’s inherent economic strength and robust annual growth among the world’s largest economies. According to Knight Frank India data, total office transactions grew 15% to 59.6 million sq ft in 2023, marking the second-best year historically after the peak level achieved in 2019 of 60.6 million sq ft.
