JPMorgan has secured 116,210 sq ft of office space in Sumitomo's commercial tower located in Mumbai's Bandra-Kurla Complex (BKC). This significant pre-lease agreement is for a term of 10 years to begin with.
The agreement includes an initial 10-year license period, with provisions for three additional five-year extensions, potentially extending the occupancy to 25 years.
The financial commitment involves an estimated rental payment of Rs 1,000 crore for the first decade, with total payments potentially surpassing Rs 2,500 crore over the complete 25-year duration. This represents a substantial commercial investment in India’s most expensive property market.
JPMorgan India has agreed to pay Rs 6.91 crore as monthly rent, calculated at Rs 595 per sq ft of carpet area, with a 15% increase every three years. The firm has deposited Rs 62.23 crore as security for the transaction registered on June 12.
The leased premises, situated on the 11th and 12th floors of the upcoming building in BKC's G Block, has been contracted from Goisu Realty, the Indian arm of Sumitomo Realty & Development Co, according to documentation accessed by ET via Propstack, a property data analytics firm.
JPMorgan India Headquarters?
Sources familiar with the transaction told the financial daily that the facility is intended to serve as JPMorgan's India headquarters.
On a 3-acre premium plot acquired from Mumbai Metropolitan Region Development Authority (MMRDA), Sumitomo is constructing a commercial building featuring 6 basement levels, ground floor and 12 upper floors. The company secured this land through a long-term lease arrangement last year for over Rs 2,067 crore.
The land parcel was acquired by Goisu Realty through an 80-year lease contract. Despite winning the highest bid for the plot in 2019, the transaction took more than four years to complete.
JPMorgan India secured a substantial office space of over 1.16 million sq ft at Nirlon Knowledge Park, located in Mumbai's Goregaon suburb, in August 2022. The agreement spans more than 10 years, with a provision to extend for an additional decade.
This transaction stands as one of the most significant commercial property deals undertaken by any multinational firm across India.
US companies are increasingly establishing their presence in India, recognising it as a crucial operational centre. These US-based organisations are actively expanding their office footprint throughout Indian cities, from Mumbai to Bengaluru, significantly influencing the country's commercial property sector.
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