ICICI Securities Secures 188,000 sq ft Office Space in Mindspace Juinagar on a 12-Year Lease

ICICI Securities, the financial services arm of ICICI Bank, has finalized a long-term lease for over 188,000 sq ft of office space at the Mindspace Juinagar information technology park in Navi Mumbai. The lease, spanning over 12 years, involves ICICI Securities renting office space across five floors in one of the towers of Mindspace Juinagar from Newfound Properties & Leasing, a subsidiary of real estate developer K Raheja Corp.

Under the terms of the agreement, ICICI Securities will pay monthly rentals of Rs 92.15 lakh for the office space. The lease contract incorporates an annual escalation clause of 4%, resulting in a total payout of approximately Rs 166 crore over the lease term. The deal was officially registered on December 15, and the lease tenure is set to commence from January 1, 2024, according to documents accessed through Propstack.

As part of the lease agreement, ICICI Securities has paid an upfront deposit equivalent to 12 months’ rent, amounting to over Rs 11 crore. The transaction also grants the financial services company exclusive access to 190 car parking slots within the commercial tower.

The agreement stipulates that the licensor, Newfound Properties & Leasing, is not permitted to terminate the lease for the entire term. Additionally, ICICI Securities has a lock-in period of the initial five years.

Despite global economic challenges, the Indian office sector has experienced sustained growth in demand throughout 2023. A recent study by JLL India indicates that net office space absorption in the country is expected to reach 37-39 million sq ft by the end of the year, similar to the figures recorded in 2022. With leasing activity anticipated to intensify in the last quarter of 2023, the year is poised to surpass the 2017-2019 average.

Queries sent to ICICI Securities and K Raheja Corp by ET remained unanswered at the time of reporting. The shift in demand for office spaces, particularly in the banking, financial services, and insurance (BFSI) sector, has been notable over the past decade. Domestic companies in India, particularly in the media, consulting, and BFSI sectors, are contributing to the increased demand for office spaces, marking a shift in the dynamics of the real estate market.