Oberoi Realty leases office space in Goregaon to Morgan Stanley

City-based realtor Oberoi Realty on Monday said it has leased 1.1 million sq ft of its office space in Goregaon, Maharashtra, to Morgan Stanley for 9.5 years for around Rs 1,700 crore. This is being done to consolidate Morgan Stanley's Mumbai Global In-house Centre (GIC) operations to a single campus in the city, the company said in a regulatory filing.

City-based realtor Oberoi Realty on Monday said it has leased 1.1 million sq ft of its office space in Goregaon, Maharashtra, to Morgan Stanley for 9.5 years for around Rs 1,700 crore. This is being done to consolidate Morgan Stanley's Mumbai Global In-house Centre (GIC) operations to a single campus in the city, the company said in a regulatory filing. Property consultant JLL was the transaction advisor for the deal

Under the deal, the US investment bank will pay a rent starting from Rs 180 per sq ft per month on carpet with a 15 per cent escalation every three years for the 1.1 million sq ft space. This takes the total rent over 9.5 years to be close to Rs 1,700 crore

The new campus will be located at Oberoi Realty's Commerz III building in Goregaon and will be ready in 2023, it said. Supporting Morgan Stanley's global institutional securities, wealth management and investment management businesses, the firm established the Mumbai GIC in 2003 and the Bengaluru GIC in 2014, the company said. Morgan Stanley, Global Head of Technology, Operations and Fusion Resilience, Robert Rooney, said, "We believe that bringing together our Mumbai GIC operations into one centralised campus will serve as a catalyst to creating further agility and synergy across all the GIC functions. The investment is a testament to the firm's commitment to India and our staff”. Morgan Stanley India GICs house functions across technology, operations, funds and finance, as well as specialised groups such as legal and compliance, corporate services, human resources operations and internal audit amongst others. At present, GIC operations in Mumbai are delivered out of three locations. "Attracting and retaining world-class talent continues to be a top priority for us. The new facility in Mumbai will provide us with the right infrastructure and resources to deliver an innovative workplace environment and promote increased productivity and engagement through efficient ways of working," Morgan Stanley Vice Chairman Thomas Nides said. Oberoi Realty CMD Vikas Oberoi said that this is one of the largest office space transactions ever and proves the company's ability to grow the commercial vertical in the coming years. He further said that major consolidation across all segments in the industry is expected and well-capitalised players like Oberoi with a proven track record will continue to thrive in the toughest of circumstances.