J P Morgan Leases Office Space in BKC for Rs 1000 Crore Over 10 Years

US financial services company JP Morgan has picked a massive office space of 116,210 sq ft in Mumbai's Bandra-Kula Complex (BKC). This particular deal will be held through a long-term lease tenure of 10 years. The rented office space is said to be from Japanese Conglomerate Sumitomo’s commercial tower. 

At present, the lease is expected to be costing nearly Rs 1,000 crore for 10 years. The company will be receiving three additional terms of five years each, making it extended 25-year terms. Hence, based on the current rental market rates it is estimated that Rs 2,500 crore will be the total rental amount for a complete 25-year term. 

• JP Morgan signs 10 year lease for 116210 sq ft office in BKC Mumbai
• Total 25 year lease value may reach Rs 2500 crore based on current rates
• Monthly rent set at Rs 6 point 91 crore with 15 percent annual escalation

The new picked-up space is an under-construction building in BKC’S G block. Goisu Realty has acquired the leased land from Sumitomo Realty & Development Co’s Indian Subsidiary. From these sources, the land lease from J P Morgan has been confirmed.

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The lease agreement highlights that a monthly rent of Rs 6.91 crore has to be made from JP Morgan. This rate will be calculated based on the carpet area rate of  Rs 595 per sq ft, having an escalation of 15 percent in a year interval period. The security deposit of 62.23 crore has been made for the registration of the transaction.