ICICI Prudential Asset Management Company has purchased an entire commercial tower in Santacruz, Mumbai, for over Rs 315 crore from realty developer Kalpataru’s subsidiary, Ixora Properties. This newly acquired tower, part of the Kalpataru Infinia project, is expected to become the asset management company's new head office. The 12-storey building, along with three basements, offers a carpet area of over 60,000 sq ft and is built on one-third of an acre. Another tower in the project, offering over 120,000 sq ft of office space, is still under construction.
This acquisition is noteworthy amidst the current trend of leasing rather than purchasing office space outright. ICICI Prudential AMC paid over Rs 18.90 crore in stamp duty for the transaction, which was finalized on June 27. A source close to the development mentioned that the asset management company plans to relocate its corporate office from Bandra-Kurla Complex to this new location, with fit-out work starting soon and operations expected to commence next year.
ICICI Prudential AMC, India's second-largest asset management company, reported average assets under management of Rs 8.03 lakh crore as of June's end. The new commercial tower is just a five-minute drive from their current office in Bandra-Kurla Complex and includes 114 vehicle parking slots.
Recent acquisitions by ICICI Prudential Life Insurance Company and ICICI Securities reflect the sustained growth in India's office sector. ICICI Prudential Life Insurance Company recently secured 252,000 sq ft of office space in IT park Mindspace, Malad West, marking one of the largest office lease transactions in the country this year. Additionally, ICICI Securities leased more than 188,000 sq ft of office space in IT park Mindspace, Juinagar, Navi Mumbai, for over 12 years.
Despite global economic challenges, the Indian office sector has shown robust demand. Net absorption in India’s top seven office markets reached 41.97 million sq ft in 2023, the second-highest annual absorption on record, trailing only 2019 levels. This performance underscores the strong demand fundamentals and resilience of the Indian office market.