Slow mkt? Firm strikes 21.5k/sq ft deal Marico Buys Office Space In Kalina Bldg For 130cr

Mumbai: At a time when Mumbai's office market is witnessing sluggish demand, FMCG major Marico has purchased approximately 60,000 sq ft of space in Grande Palladium, a ninestorey Grade A building at Kalina. The company, which currently operates from Rang Sharada at Bandra (W), will shift to its new corporate headquarters within a few months.      The Rs 130-crore deal, which translates to approximately Rs 21,500 per sq ft, is slightly higher on per sq ft rate basis than the Rs 400-crore deal (approximately Rs 18,000 a sq ft) struck by Edelweiss in 2010 for 2.5 lakh sq ft space in Lotus Midtown at Kalina. Confirming the deal, Marico said they needed the space to cater to the growing infrastructural needs of the FMCG group.      Nikhil Bhatia, head of the western region of global property consultants CBRE, said, "Unlike in other areas, Kalina is not facing an oversupply of office space. As per our data, approximately 3 lakh sq ft of office space is lying vacant against 1.9 million sq ft space being constructed in Kalina. In that context, the price paid by Marico seems at par with the prevailing rate in that area."      Property consultants say that despite the poor infrastructure facilities in the area, real estate prices in Kalina are on the higher side. "The reason is Kalina's proximity to the banking district of Bandra Kurla Complex (BKC). As a result, many companies who can't afford the high prices of BKC prefer to purchase or rent space nearby," a broker said.      In 2009, Rustomjee sold 1.42 lakh sq ft of office space in Andheri (E) to public sector firm SBI Life insurance for Rs 211 crore, close to Rs 15,000 per sq ft, and Motilal Oswal bought 1 lakh sq ft of commercial space from K Raheja Universal at Prabhadevi for Rs 160 crore.      However, the biggest deal recorded so far was when multinational bank Standard Chartered bought close to 2.5 lakh sq ft of office space in BKC for Rs 750 crore in late 2008. The bank bought the property from developer P D Developers at around Rs 30,000 per sq ft.      In early 2008, the British Council bought commercial property from Naman Developers for around Rs 45,000 per sq ft in BKC.      BIG-TICKET PURCHASE  • Marico, which currently operates from Rang Sharada at Bandra (W), will shift to its new corporate headquarters within a few months  • The Rs 130-crore deal is slightly higher on per sq ft rate basis than the Rs 400-crore deal (approximately Rs 18,000 a sq ft) struck by Edelweiss in 2010 for 2.5 lakh sq ft space in Lotus Midtown at Kalina  • Property consultants say despite poor infrastructure facilities in the area, prices in Kalina are on the higher side due to its proximity to the Bandra Kurla Complex