UBS takes up commercial space at Navi Mumbai’s Airoli Mindspace

Swiss bank UBS has set up its office on part of recently leased 4 lakh sq ft space in K Raheja Corp’s Mindspace complex in Navi Mumbai’s Airoli locality. The new office of the Zurich-headquartered, NYSE-listed multinational bank will provide IT infrastructure support to UBS’ international operations and also house its global service center hub.

This is the first instance of an international bank setting up its service center in Navi Mumbai. Currently, three large domestic banks including State Bank of India and Axis Bank already have their back office units in Mumbai’s satellite city.

In the first leg of the transaction, the bank’s India arm has picked up 1.50 lakh sq ft office space. Rest of the space will be picked up in phases over the next 12-18 months as part of the bank’s growth plan.

Global strategy and consultancy major Accenture occupied 3 lakh sq ft office space in the same IT park less than a year ago. Accenture had entered this micro market with 50,000 sq ft office in 2010-11 and it has over 1.5 million sq ft of office space here.

Navi Mumbai and its peripheral areas are emerging as a destination for IT and ITeS companies looking for office space to expand or consolidate operations. Competitive real estate costs, an upcoming international airport and improved connectivity to Mumbai are all advantages of being in Navi Mumbai.

Currently Navi Mumbai has over 15 million sq ft of IT parks already developed and occupied by large Indian and multinational companies. The rentals here are expected to remain stable in the range of around Rs 50 per sq ft given that nearly 9 million sq ft is set to be added to the existing supply over the next two years.

K Raheja Corp, the country’s second largest developer of business parks, itself is working on plans to build another 5 million sq ft here and plans to invest Rs 2,000 crore including land cost. At Mindspace in Airoli, a total 7 million sq ft IT park spread over 50 acres, around 1.5 million sq ft is ready and occupied. Currently, the company has another 1.5 million under construction at this IT park, most of which is pre-committed for occupancy.

SOURCE – THE TRIBUNE