Brookfield Properties, a major player in the global real estate sector, has announced that it take carge of the development of a Grade-A commercial property with a gross floor area of 1.3 million sq ft in Mumbai under a long-term built-to-suit agreement with JP Morgan Chase.
The proposed office tower will be set up on a six-acre land parcel in Powai, Mumbai, which was acquired by a private real estate fund managed by Brookfield Asset Management in the recent past. The development will take place through an agreement entered with the Mumbai Metropolitan Region Development Authority (MMRDA) and a joint venture with Brookfield and B S Sharma. The development will be completed in 2030.
As per Brookfield Properties, the proposed office tower boasting around 13 lakhs sq ft of area is expected to house JPMorgan Chase’s various teams operating out of Mumbai under one roof and offer them a world-class workplace.
This upcoming 1.3 million sq ft office is set to consolidate some of JPMorganChase's employees in its new office infrastructure in India. Brookfield is set to invest significant capital into developing this office tower for JPMorganChase, since they have majority ownership in this particular venture.
It represents yet another extension of the longstanding global partnership between Brookfield and JPMorgan Chase, and it reflects the continued requirement for quality commercial property among global financial sector companies in the Indian marketplace at a point in time when several global companies are rationalizing their space requirements in the Indian marketplace.
Experts in the sector observe that in spite of the uncertainties in the global market and the dynamics of the future of work strategies, India is welcoming a lot of investments in large-scale offices. The main locations for these investments in India are Mumbai, Bengaluru, and Hyderabad.
Ankur Gupta, Deputy Global Chief Investment Officer and Head of Asia Pacific and Middle East for Real Estate at Brookfield Asset Management, stated that , this deal ratifies India's position as a premier destination for capability centres internationally. It is a testament to the trust that its long-standing partners have in Brookfield Properties' capability to create Grade A and sustainable office spaces at scale and in perpetuity.
The Properties arm, Brookfield Property Partners, is a leading active global real estate owner, operator, and developer across high-quality office, retail, multi-residential, hospitality, and logistics real estate businesses. Overall, the Company manages more than 1,100 properties globally, encompassing real estate space of over 370 million square feet.
In the Indian market, Brookfield has been able to develop a large real estate platform in the past 10 years in terms of commercial real estate. Today, it manages a real estate business of 55 million sq ft in 10 major cities in the country, with over 41 million sq ft of it having been delivered. This largely comprises multinational corporations and global capability centers.
The Powai project is also in sync with the overall plan of JPMorganChase to intensify its operations in the Indian market. The US-based giant bank has already been increasing its foothold in the Indian market, making use of the pool of skilled workers that India has to offer in the areas of technology, operations, analytics, and back office functions. Recently, the company announced its plan to start the largest global capability center in Asia in the Indian market.
The Brookfield/JPMorganChase development is representative of the continued confidence being placed in the Indian commercial property market, especially Grade A office developments with a customized built-to-suit approach. With global companies continuing to look at India as a long-term destination option, developments such as this will prove to be a major driving factor for the Indian office leasing market.
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