HDFC Bank Signs ₹320 Crore Lease for 4.16 Lakh Sq Ft in Navi Mumbai
Mumbai: HDFC Bank has finalized a long-term lease agreement for an entire eight-floor building in the Mindspace Business Park, Airoli West, Navi Mumbai. The lease spans a total area of 4.16 lakh square feet and will cost the bank over ₹320 crore for the 10-year duration. The deal also includes a 15% rent escalation clause, which will increase costs over time.
Details of the Lease
The lease agreement was completed in two stages, involving separate registrations.
In the first deal, registered in November, HDFC Bank leased 1.97 lakh square feet of space. This includes the lobby and the fifth, sixth, seventh, and eighth floors of the building. Additionally, 154 parking spots are included in this part of the agreement.
The second lease agreement adds another 2.18 lakh square feet to the total area, covering the lobby and the first, second, third, and fourth floors of the building. This portion of the lease includes 168 parking spaces. Combined, the total leased area spans all eight floors of the building and provides 322 car parking spots.
As per Hindustan Times, HDFC Bank plans to utilize the space for back-office operations, as well as for its information technology (IT) and IT-enabled services. This expansion supports the bank’s growing operational needs in a highly competitive banking and technology environment.
Changes to SEZ Rules Enabled the Deal
The building is located within the Mindspace Business Park’s Special Economic Zone (SEZ). Recent amendments to SEZ rules now allow specific floors of SEZ buildings to be converted into non-processing areas. Leveraging these changes, Mindspace REIT converted the building into a non-SEZ space, making it eligible for this lease agreement.
Navi Mumbai: A Fast-Growing Commercial Hub
Navi Mumbai has emerged as a key player in the commercial real estate sector, thanks to its strategic location and growing infrastructure. Large-scale projects such as the Navi Mumbai International Airport and the ongoing metro rail development are further improving the region’s connectivity and accessibility.
Airoli, where the Mindspace Business Park is located, has become a hub for banking, IT, and technology industries. The rise of modern business parks and mixed-use developments in the area is creating significant demand for commercial office spaces. Companies are increasingly drawn to the area for its dynamic business environment and workforce opportunities.
HDFC Bank’s Real Estate Strategy
This lease is part of HDFC Bank’s broader real estate strategy following its merger with HDFC Ltd in 2023. As part of its plans, the bank is monetizing excess properties inherited during the merger, which could generate approximately ₹3,000 crore. These properties include both residential apartments and commercial office spaces.
In addition to the Navi Mumbai lease, HDFC Bank has been actively expanding its real estate portfolio. In 2023, it purchased 2.84 lakh square feet of premium office space in South Delhi’s World Trade Tower for ₹1,130 crore. The bank also signed an 18-year lease for 2.17 lakh square feet of office space in Noida, with a starting monthly rent of ₹1.47 crore.
This deal highlights HDFC Bank’s commitment to scaling its operations and tapping into Navi Mumbai’s growing potential as a commercial hub. Queries regarding this lease have been sent to HDFC Bank and Mindspace REIT, with updates expected as they respond.
Image source: shutterstock
