L&T sells three pre-leased floors in Powai office tower to National Realty for Rs 81 crore

Engineering and construction major Larsen & Toubro sold pre-leased office space spread
across three floors in L&T Business Park-TC-IV in Mumbai’s Powai suburb to National Realty for
nearly Rs 81 crore.
The company sold this office with nearly 37,527 sq ft carpet area immediately after leasing it
to CitiusTech Healthcare Technology at starting annual rent of Rs 7.40 crore.
National Realty, earlier known as National Leasing, is a real estate investment company
engaged in the business of acquiring properties, mainly commercial, and leasing the same to
corporates and banks.

The buyer has paid stamp duty of Rs 4.85 crore for acquisition of the 9th, 10th and 11th floor of
the commercial tower from L&T.
Along with these three floors, National Realty has also received exclusive access to a total 54
car parking slots as part of the deal that was registered on Friday, showed the documents
accessed through CRE Matrix, a real estate data analytics firm.
Prior to this, L&T leased this office space to CitiusTech Healthcare for a total long-term tenure of
10 years. CitiusTech Healthcare has paid a security deposit worth nearly Rs 3.70 crore for this
lease. The lessor will be paying starting monthly rentals of Rs 61.65 lakh and the agreement
includes a clause to escalate the same by 5% in the second year and thereafter 4.2% every
year until the lease term comes to an end.
The lease term commences from December 26, 2022 and CitiusTech Healthcare will get a rentfree period of first four months from commencement date as part of the agreement that was
registered in February.
With the sale transaction and transfer of control, National Realty will get the rental income from
this pre-leased asset.
ET’s separate email queries to L&T, National Realty and CitiusTech Healthcare remained
unanswered till the time of going to press.

Demand for office spaces has made a strong comeback across key property markets. With
sustained growth in demand for grade-A commercial office space, experts believe the
investment momentum in the Indian real estate sector will continue to rise.
Top office markets of India registered total gross leasing activities of 51.6 million sq ft in 2022,
which was 36% higher over the last year’s performance. This was historically the second-best
year for office transaction volume with the peak achieved in 2019, showed recent data.
Of the total office space absorption, Mumbai recorded 6.4 million sq ft during the year, up 69%.
In terms of new supply, the country’s commercial capital has witnessed completions of just 1
million sq ft in the second half of 2022. Lower Parel itself has also witnessed robust leasing
momentum over the past year.