JP Morgan leases office space with 1,130 car parks in Goregaon for 10 years

Mumbai JP Morgan has picked up over 1.16 million sq ft office space with 1,130 car parks at Nirlon Knowledge Park, Goregaon on a 10-year lease. The leave and licence deal has been signed between JP Morgan Services India Pvt Ltd and Nirlon limited.

At ₹145 per sq ft a month, the rent for the first years will be over ₹201.85 crore. With an escalation of 15% every three years, the total rent for the entire tenure of 10 years will cross ₹2,000 crore. The 10-year lease period starts from December 15, 2021 and ends on December 14, 2031 and has a five-year lock in period. The leave and licence has an extension option of two terms of five years each.

A security refundable dropout of ₹151.39 crore has been paid too. According to documents, a stamp duty of ₹425.65 crore has been paid for the registration of the leave and licence agreement.

According to documents provided by Propstack, a firm that accumulates data via public documents, the paperwork related to the deal was carried out in January 2022, but the registration took place only in June this year.

The leased out property is entire block B-9, which is a ground plus 23 floors, entire block B-10, which is ground plus 9 floors and a part in block B-11. The areas include basements in these blocks and other areas like storage etc.

This has become one of the biggest realty leave and licence deals signed this year. A detailed email sent to JP Morgan and Nirlon ltd seeking their comment got us no response.

Recently, Citicorp Services India renewed its lease of 1.6 lakh sq ft office space at Nirlon Knowledge Park in Goregaon for a period of five years. This office space is spread over six floors with a lock-in period till September 2024. Citicorp Services will be paying a rental of nearly ₹137 crore across the total tenure which is of 60 months. The per month rent stands at ₹2.28 crore. The lease tenure starts on September 15, 2022 and ends on September 14, 2027. The lock-in period is from September 15, 2022 to September 14, 2024. Whereas the notice period is six months.

In June this year, 2.39 lakh sq ft of land area was leased out for a whopping ₹3.57 crore per month for a period of 258 months. Amazon Data Services India Pvt Ltd rented the land parcel in Powai owned by Larsen and Toubro Ltd.

Yes Bank on August 24, 2022 signed a rental deal to lease 44,000 sq ft area in Mumbai’s Goregaon for ₹53.19 lakh per month, for a period of 60 months. The rental period starts from September 22, 2022 and ends five years later on September 22, 2027.

In July 2020, Morgan Stanley had concluded negotiations and reached a deal to lease up to 1.1 million sq ft office space for 9.5 years from Oberoi Realty in Commerz III, Goregaon. This year too, according to reports, Morgan Stanley leased an additional 3.35 lakh sq ft. The total rent is nearly ₹2,000 crore for the entire tenure of 9.5 years.

In July 2020, Godrej Fund Management leased 2 lakh sq ft office space to AP Moller – Maersk’s business units in Mumbai. The space is located in Godrej Two, Vikhroli costing ₹13.09 crore.

“Goregaon East seems to be fast developing as a financial mini-hub after BKC, with the likes of JP Morgan, Deutsche Bank, KPMG, PWC and Morgan Stanley. We foresee a significant rise in large commercial office deals being signed up, thanks to steady economic recovery, gradual return to work-from-office policy, strong job market,” said Abhishek Kiran Gupta, CEO, CRE Matrix.