Reliance Nippon Life Insurance has taken a 48,924 square feet space on lease in Inspire BKC, a commercial property owned by Adani Group in Bandra Kurla Complex (BKC), Mumbai, said sources in the know.
The insurance firm will pay a total rent of 62.4 crore for a five-year lease period.
According to the agreement, Reliance Nippon will pay an annual rent of `12.8 crore for the first three years, 13 crore in the fourth year and 11 crore in the fifth year as it will get a rent-free period of three months that year, sources said.
The rent of 219 per sq ft that the company will pay is almost in line with rentals in the area, the sources added.
Emails sent to Reliance Nippon Life Insurance and Adani Group did not elicit a response. Property consultant Colliers, the transaction consultant, also did not respond to a query on the subject.
In 2020, Reliance Nippon took a 40,000 sq ft space on a five-year lease in the same Adani property to house its corporate headquarters, sources said.
There was a growth of 21% on a yearly basis in office absorption to 15.9 million square feet across seven major office markets in the third quarter of the current calendar year. The seven major cities cumulatively witnessed a surge in the new office space supply by 26% annually to 13.4 million sq ft during the third quarter, consultancy firm Vestian said.
Mumbai reported a jump in leasing of office space by 21% to 2.3 million sq ft as new supply jumped 125% to 900,000 sq ft. Pune witnessed an 83% increase in office leasing to 1.1 million sq ft, along with a new supply hike of 73% to 1.9 million sq ft, it said.