JP Morgan Services India will be paying rentals of Rs 145 per sq ft a month for the leased office space taking its payout in the first year alone to nearly Rs 202 crore.
JP Morgan has picked up over 1.16 mn sq ft office space at Nirlon Knowledge Park in Goregaon suburb of Mumbai through a long-term lease of over 10 years with an option of extending the same by additional 10 years.
This is one of the largest commercial real estate transactions concluded by any multinational company anywhere in India this year. The financial giant India arm JP Morgan Services Ltd will be paying rentals of Rs 145 per sq ft a month for the leased office space taking its pay-out in the first year alone to nearly Rs 202 crore. The lease rentals to be paid by the company across the 10 year tenure will be over Rs 2,400 crore including the rentals escalations.
The agreement between JP Morgan Services India and Nirlon provides for rental escalation of 15% every three years. The lease tenure has five year of lock in period. JP Morgan Services India has paid Rs 151.39 crore as refundable security deposit to Nirlon while concluding the transcation.
As a part of the lease the company will also get and exclusive access to a total of 1,130 car parking slots. While JP Morgan announced the commitment to lease this office space in 2019 the deal has been concluded and registered now.
As per the lease terms JP Morgan Services India has picked up over 34 floors across 3 wings of one of the towers and also their basements.
Singapore’s sovereign wealth fund GIC owns a majority stake in Nirlon that controls Nirlon Knowledge Park, a large scale information technology office park . The commercial property is spread across a total construction area of 3.3 mn sq ft along the Western Express Highway.
The lease agreement options of total 10-year extension includes an option of two extension terms of five year each. Extension term license fees or rentals for these extensions will be determined by both parties at least nine months prior to the expiry of license term or the first extension term.
