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Another MNC moves to Andheri

Johnson and Johnson (J&J) has a signed a nine-year lease for a its headquarters in Arena Space, a commercial building constructed by Arena Enterprise, on JogeshwariVikhroliLink Road in Andheri. Arena Enterprise is owned by the Cheddha family who have interest in other business like Prince Plastics Pvt Ltd.

Under the agreement, approximately a lakh sq ft of space has been leased for approximately Rs 85 lakh a month. Two years ago, Hindustan Unilever Ltd shifted to Andheri (E). The global property consultant, CBRE, transaction advisor and the director of Arena Space, Kinjal Dudhagara, are tight-lipped about the deal.

However, the healthcare major confirmed the transaction and said they will be shifting to a new corporate office early next year. “The office will house all our employees from the existing corporate headquarters at Tardeo and other locations across Mumbai,” a spokesperson said. “This move is in keeping with our spirit of providing a comfortable, effective and efficient office environment for our employees,” he added.

In 2011, the company had contemplated relocating to Powai and had even signed a memorandum of understanding with Hiranandani Developers to construct a “build-to suit” corporate HQ across 3 lakh sq ft. However, the agreement later fell through.

Property experts say notwithstanding a 37% drop in demand for commercial space due to the global economic situation, some multinationals along with J&J are bucking the trend and are picking up office space. “The J&J deal is roughly 10% less than rental rates quoted across the city,” said a broker, who specializes in commercial office leasing.

“It is actually a win-win for both parties and an indicator of the compressed economic conditions and huge oversupply of office space. Compared to J&J, I am unable to rent out a fully furnished office space of 50,000 sq ft in Technopolis building in Andheri east even for Rs 100 a sq ft for the past one year,” he added.

A US entertainment company, Walt Disney, who took over UTV, one of India’s biggest media companies as part of their expansion plan in 2012, recently signed a lease for 1.25 lakh sq ft office space in Solitaire Corporate Park at Andheri east.

The company, which currently operates from Peninsula Corporate Park in Lower Parel, finalized a six-year lease agreement with D’Decor Home Fabrics for over Rs 140 per sq ft. D’Decor managing director Sanjay Arora confirmed the deal and said his company will occupy the remaining 1.25 lakh sq ft in the seven-storey building.

Other deals include French multinational pharmaceutical company Sanofi’s Indian subsidiary acquiring 1.5 lakh sq ft of office space from L&T Realty at its new project in Powai for 220 crore. First International Financial Centre (FIFC) also concluded a 9 year lease transaction at about Rs 340 a sq ft with Oracle India Private Limited (OIPL) for 50,000 sq ft office space. FIFC has two well-known occupants; Citibank which sealed a record Rs 31,000 a sq fr, or Rs 985 crore deal for 2.97 lakh of office space and Ping Pong, a UK food and beverage chain who recently leased 7,000 sq ft area on the ground floor for monthly rent of over Rs 350 per sq ft.

Source: http://article.timesofindia.indiatimes.com/2013-04-27/mumbai/38861372_1_fifc-office-space-first-international-financial-centre

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