Financial services firm Edelweiss has bought over one lakh sq ft of office space in Mumbai’s eastern suburb of Kurla, in a deal that could be valued at up to R130 crore, inclusive of all costs, sources with direct knowledge of the development told FE.
The Rashesh Shah-promoted firm, which is looking to expand operations, will be acquiring the office space, spread across five floors, in the Kohinoor City, a project by Mumbai-based real estate developer Kohinoor Group. Edelweiss owns an entire building in Kalina, which is close to Kurla.
The office space that Edelweiss has acquired is close to the business hub of Bandra Kurla Complex (BKC) that houses the offices of many
Indian and multinational financial services firms and corporations.
According to sources, Edelweiss will be acquiring the commercial space at a rate of around R10,000 per sq ft, which is said to be a reasonable price to pay for office space in the locality.
“It is a good value deal from the perspective of property price appreciation expected in and around Kurla,” said a property consultant who knew about the transaction.
An email sent to Edelweiss remained unanswered. A Kohinoor Group spokesperson confirmed the transaction, but did not share any financial details.
Spread over 38 acres, the Kohinoor City houses 13 lakh sq ft of residential area and 9 lakh sq ft of commercial space. This land was once owned by Premier Automobiles, makers of the once-iconic Premier Padmini cars.
Kurla is a congested area characterised by slums, makeshift garages and stores for industrial spare parts. But with amenities and accessibility to the area improving, it is in the process of getting a facelift.
In the last four years, Kurla has seen a spate of real estate transactions with some big-ticket deals. Though they are located close to each other, property rates in Kurla are around half of what they are in BKC. Commercial space in the latter commands a rate of R25,000-30,000 per sq ft.
In 2011, American School bought 1.4 lakh sq ft of space for around R125 crore in Vidyavihar, a suburb close to Kurla. The Atul Ruia-promoted Phoenix Mills’ Phoenix Market City, a high-end shopping mall and office space project, is situated in Kurla.
On March 10, Mumbai-based Housing Development Infrastructure announced the launch of its new residential project called the Premier Legend in the same vicinity.