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representative imageloyalty groupglobal investment firm of Eight Road Investment Advisors Raised an ocean-view front office spanning an entire floor in a commercial tower, Avighna HouseIn Mumbaiis luxurious Worli The locality at a record monthly lease rental of Rs 561 per sq ft.
The firm has leased over 6,150 square feet of usable office space in the tower for five years. The agreement includes a provision to increase the rent by 9.75% every two years.
The deal assumes significance against the backdrop of record rents per sq ft by any office property in the most expensive market in the country. Mumbai after a long gap.
Earlier in 2007, Barclays Bank had leased 15,000 square feet of office space in the commercial tower. Heritage Pack at home Worli 725 per sq. ft. per month. Avighna House is also located near Heritage Pack House on Dr. Annie Besant Road.
In November, ET had reported that Waterfield Advisors, an independent multi-family office and wealth advisory firm, had leased an entire floor in Avighna House at a record monthly lease rental of Rs 520 per sq ft. Eight Road Investment Advisors‘ Office transactions have exceeded that benchmark.
ET’s email queries to Eight Roads and project developer Avighna India remained unanswered, while JLL India declined to comment.
After 2008, there was a reduction in commercial property rentals due to better supply of office stock in the country’s financial capital and a decrease in demand for front offices from international banking groups following the global financial crisis. However, since then there has been a steady increase in demand.
Eight Roads is a global venture capital firm backed by Fidelity that helps entrepreneurs scale. It invests in a wide range of technology and healthcare business sectors. The company has a presence in China, Europe, India and Japan, and its global platform has more than 50 years of venture investment experience, assets under management (AUM) of $11 billion, and more than 300 portfolio companies.
Recently, Eight Roads Ventures announced its first India-focused healthcare and life sciences fund of $250 million. The new fund will support 15 to 20 companies working in the space, with check sizes ranging from small investments to $40 million.
Eight Roads Ventures India has a portfolio of approximately 60 companies and invests in a broad spectrum of healthcare and technology sectors. The fund has so far backed companies including Pharmeasy parent API Holdings, Nicotex brand owner Cipla Health, plant-based nutrition brand OZiva, employee healthcare platform eKincare, and dental clear aligner brand Toothsee, among others.
Worli is known for housing offices of many financial and investment banking world majors, including Credit Suisse, Lehman Brothers, Societe Generale and Hypobank. While Mumbai has not seen any deals at these rates in recent times, these types of rentals were earlier seen in the business district of Bandra-Kurla Complex.
The recovery in commercial real estate, especially office space, following the Covid19 pandemic is becoming widespread, as indicated by the increasing number of small and medium-sized leases and volumes and outright transactions in key property markets.
The commercial office segment, which was hit hard by the pandemic, has made a strong comeback in the last 3-4 quarters with strong economic growth, increase in hiring, and return to office space, keeping the office sector buoyant.
Listed Real Estate Investment Trusts (REITS) and realty developers who have large office real estate portfolios have seen an increase in transactions of 10,000 sq ft to 50,000 sq ft and apart from large transactions, boutique offices are also being liquidated.
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