Citibank India set to seal Rs 10.0b deal in Mumbai

MUMBAI, Mar 31 (Agencies): The city may soon record the largest transaction for commercial space with Citibank India close to paying approximately Rs 10.0 billion for space in an under-construction building at Bandra-Kurla Complex. The deal, expected to be concluded shortly, comes at a time when the property market is in the dumps. Market sources said the bank is believed to be paying Rs 33,000 a square foot for the 0.3 million sq ft office space in the new building. It is being constructed by Purnendu Chatterjee promoted-TCG Urban Infrastructure and New York-based realty firm Vornado Realty Trust. A Citi spokesperson declined to comment on the deal. "This could be the largest commercial deal. BKC is a premium location, but the price is high considering the depressed market conditions," said real estate consultant Ashok Narang. A source familiar with the transaction said the bank signed a letter of intent (LoI) and was in the process of ironing out issues such as naming rights of the building, car parking and interior fittings. The deal is brokered by global property consultants, CBRE. The building is coming up on a two-acre plot which was bought by TCG-Hiranandani Group for Rs 10.41 billion in November 2007. The under-construction building will have a total area of over 0.65 million sq ft, of which the bank will own half. The biggest commercial property deals in the city so far would include the one in May 2010 where Bombay Dyeing sold a 0.4-million sq ft building in Worli to Axis Bank for Rs 7.82 billion. In end 2008, Standard Chartered Bank paid Rs 7.50 billion for approximately 0.14 million sq ft spread over 4.5 floors in Crescenzo building at BKC. In 2009, developers Rustomjee sold a 0.14 million sq ft office space at Andheri East to SBI Life Insurance Company for Rs 2.11 billion. In early 2007, the British deputy high commission inked a Rs 1.47-billion deal to purchase outright three floors in a building constructed by Shri Naman Developers at BKC. The commission paid Rs 35,000 a sq ft for space measuring a built-up area of 42,000 sq ft.