tiaa: American pension fund TIAA leases 1.25 lakh sq ft in Brookfield’s tower in Mumbai’s Powai
TIAA, formerly TIAA-CREF, has taken over this office space on the 7th and 8th floors, with a hard option to extend to the 6th floor.
The monthly rent has been set at Rs 140 per sq ft.
“The transaction was inked and registered a few days ago. TIAA is expected to start its fitout work and start operating from the new office in the next couple of weeks, ” said one of the people mentioned above.
The commercial building is a special economic zone (SEZ) which came into Brookfield’s commercial portfolio following the Canada-based investor’s acquisition of Hiranandani Group’s offices and retail space in Mumbai’s Powai suburb for about $1 billion in 2016.
The commercial office tower Winchester has a leasable area of 7 lakh sq ft spread across 13 office floors and 4 parking floors. It is part of the 17-acre One South Avenue campus in the Powai suburb, and it has 2.5 million square feet of built-up area spread across four towers, making it a low-density project.
Currently, the entire campus is being upgraded with the biophilic design helping create large green spaces. Over the past two years, Brookfield has been refurbishing the project including Winchester with the addition of social infrastructure and sports amenities for employees of tenants.
Deloitte, Nomura, Tata Consultancy Services (TCS), Baker Hughes and Cognizant are some of the key occupants across the One South Avenue campus.
TIAA is a leading provider of secure retirement and outcome-focused investment solutions to millions of people and thousands of institutions.
The not-for-profit retirement market provider has $1.3 trillion in assets under management.
ET’s email query to TIAA remained unanswered until the time of going to press. Brookfield Asset Management declined to comment on the story.
Lease transactions for large office spaces are increasing throughout important property markets, owing to a strong economic recovery, a nationwide vaccination campaign, and a growing number of corporations seeking to return their workforces to the workplace.
Google, Intel Technology, ABB, WeWork, and Veritas Software Technologies, as well as Samsung India Electronics and the Future Technology School Foundation, have all acquired substantial office premises in the last several months.
The leasing activity in the information technology and IT-enabled services sector has already boosted absorption of office space in the July-September quarter.
According to a recent report, office leasing for the quarter increased by more than 2.6 times to 12.5 million sq ft across 8 key property markets in India.With this, the total office real estate transactions have reached 83% of the pre-pandemic level quarterly average witnessed in 2019.