HDFC Bank has leased nearly 80,000 square feet of office space in a commercial project Himalaya Elanza at Ahmedabad’s RTO Circle. The private sector bank has leased the office space for a five-year term and will pay nearly Rs 5 crore per year
The transaction is significant because the Mumbai-based bank is acquiring this size of office space in one of the key tier II cities.
The bank will most likely use the space to establish its processing unit and customer service operations.
“This is our first transaction with HDFC Bank and we would like to build this relationship further. With this deal, around 85% of this project is now occupied,” said Kamlesh Modi, MD, Himalaya Buildcon.
The commercial tower with total 3.5 lakh sq ft office space is built by Ahmedabad-based real estate developer Himalaya Buildcon.
The project counts Ahmedabad Urban Development Authority (AUDA), the RTO Department of Gujarat government, Indian Bank, Suzuki Bikes, Yamaha Bikes, Patanjali and also a 113-room hotel Central Inn Hotel as its key occupiers.
“Identifying and acting on remarkably increased activity in the BFSI sector post Covid-19, HDFC Bank Ltd. has taken up this prime office space in the commercial tower of Himalaya Elanza in Ahmedabad to deploy full-fledged back-office services and employee training activities. Considering how rapidly Ahmedabad is fortifying its reputation as an important economic hub, the timing is more than apt and the location is ideal,” said Bappaditya Basu, Chie Business Officer, ANAROCK Commercial, which acted as the transaction adviser.
Following the outbreak of the Covid-19 pandemic, activity in tier 2 commercial real estate has increased. This is due to general affordability, the availability of the right talent, price stability, the availability of more options, and relatively lower competition for properties.
The combination of these factors has drawn businesses, occupiers, and investors from major cities and metropolises to tier II cities