HDFC Bank has leased 4.5 lakh sq ft of office space spanning seven floors in Runwal Realty’s commercial tower, R Square, Andheri East in one of the city’s largest corporate leasing transactions. The long-term lease agreement, exceeding Rs. 1,020 crore, is structured for over 10 years, with a rental escalation of 15% every 36 months.
The lease, which commenced on January 21, includes a fit-out period of 180 days and grants the bank exclusive access to 227 car parking slots. Registered on January 27, the transaction was executed through three separate agreements, attracting a stamp duty payment of over Rs. 116 crore. Initial monthly rentals are set at Rs. 6.45 crore for a carpet area of nearly 2.73 lakh sq ft.
The move follows HDFC Bank’s post-merger strategy to streamline its real estate portfolio, which includes the monetization of several assets across Mumbai and other cities. As part of this plan, the bank is set to sell non-core properties, including HDFC House in Churchgate, Kalina, Chandivali, Kolkata, Mysore, and Bengaluru, aiming to generate over Rs. 3,000 crore.
HDFC House, a prime commercial property in South Mumbai, was originally acquired from Hindustan Unilever in 2014 for Rs. 300 crore. Before the acquisition, the 153,000 sq ft property served as Hindustan Unilever’s headquarters, with HDFC operating as a tenant before purchasing it.
The latest lease transaction highlights the continued expansion of corporate occupiers in Andheri East, a key commercial hub in Mumbai, known for its connectivity and modern infrastructure.