In one of the largest office space deals, Godrej Properties has sold 4.35 lakh sq ft in commercial project at BKC, Mumbai, to healthcare products major Abbott for about Rs1,480 crore.
Abbott plans to use the space as its corporate office, bringing together all of its business in the city at one location. This is a part of the company's deepening commitment in India, Abbott said in a statement.
It will house more than 1,500 employees. The company expects to occupying this building from 2016. In a filing to the BSE, Godrej Properties on Wednesday announced that “the company has entered into a transaction for selling 4,35,000 sq ft of saleable area at its commercial project Godrej BKC in Bandra Kulra Complex (BKC) Mumbai to a single user for a total consideration of Rs1,479 crore.”
This is the highest ever value for any single end-user commercial real estate transaction in India, it added. “This deal will be an important driver of our plans to unlock capital invested in our commercial portfolio and will hasten the pace of our growth going forward,” Godrej Properties MD & CEO Pirojsha Godrej said.
When contacted, Godrej said the fund would be utilised to reduce the company's debt significantly and for future growth.
“We still have 3 lakh sq ft left in the project which will be monetised over the next one year,” Godrej told PTI. In a separate statement, Abbott Chairman and CEO Miles D White said: “India is one of the most important places in the world for Abbott, and we're investing here accordingly. We intend to be a strong, committed, and contributing part of India's future.”