Mumbai: In the largest tenure lease deal ever in India, private sector lender
Yes Bank has picked up over 2.30 lakh sq ft office space in Navi Mumbai for a total of 21 years, said two persons with direct knowledge of the development.
In addition to the leased space,
Yes Bank also has secured first right of refusal for 50,000 sq ft in the complex. The bank will be paying rentals of about Rs 50 per sq ft a month excluding maintenance charges. The agreement includes a rental escalation clause with 15% increase every 3 years.
“The bank is planning to use the newly leased space for its back office operations and is also looking to move some of its functions from Lower Parel office,” said one of the persons mentioned above.
The transaction, given its long tenure, is of strategic importance for the bank and also assumes significance in the backdrop of recent change of guard at the bank. Usually, the lease tenures are for three, six and nine years. However, this deal has been structured for 21 years.
The bank has leased the space in Reliable Group’s commercial project Empire Tower in Navi Mumbai’s Airoli locality.