Barclays Bank Plc, the British multinational universal bank, has finalized a long-term lease for a sea-view front office space spanning two floors in Mumbai’s upscale Worli area. The lease, extending over ten years, will see Barclays India and Barclays Investments and Loans (India) Pvt Ltd utilizing a total of 64,000 sq ft on the 32nd and 33rd floors of the Altimus office tower, developed by K Raheja Corp’s subsidiary Whispering Heights Real Estate.
Barclays’ India arm will pay a lease of approximately Rs 306 crores over the lease term, with an upfront deposit equivalent to six months’ rent. The lease rental is set at Rs 320 per sq ft for the first year, amounting to over Rs 2.08 crore monthly, with a 4.5% escalation every 12 months thereafter.
The lease agreement, effective from January 1, includes an initial five-year period, extendable for an additional five years as per renewal terms. Rent payments are scheduled to commence from July 1, 2024. As part of the deal, Barclays Bank gains exclusive access to more than 51 car parking slots in the commercial tower.
Whispering Heights Real Estate, the lessor, is not entitled to terminate the lease throughout its entire term, and Barclays Bank has a lock-in period of two years. The commercial project, spanning over 3 acres, recently received its occupancy certificate and has garnered interest from various entities in the banking and financial services sector.
While Barclays Bank and K Raheja Corp declined to comment, this development follows a trend, with Morgan Stanley recently leasing office space in the same tower for over Rs 340 crores. Barclays plc, a significant UK employer in India, operates across banking, technology, and shared services, with a branch presence since 1990. In 2023, India’s top eight office property markets experienced a 15% growth in total office transactions, reflecting strong occupier activity.