11th floor of Air India building in Mumbai rented out, TCS to pay Rs 375/sq ft per month

If you thought Nariman Point as central business district (CBD) is loosing its sheen then this deal will make you re-think. Recently Tata Consultancy Services inked a deal where they rented out a property measuring 13,363 sq ft at a monthly rent of half a crore. The same property they had earlier rented in Air India building was for Rs 37.81 lakh per month. They even paid Rs 1.40 crore as deposit to Air India for renting out this property on the 11th floor of the iconic building.

Air India building has been amongst the premium commercial and office use property in South of Mumbai. The building consisting of 23 floors, faces the sea and is on the main Marine Drive Road.

An Air India spokesperson confirming the deal said, "This is renewal of leave and license agreement signed between Air India and TCS for one floor admeasuring area 13,363 sq ft built-up area. Basic rent for first year is Rs 375 per sq ft per month and basic rent for second year is Rs 375 per sq ft per month. In addition to this Rs 23.71 per sq ft per month shall be payable against maintenance and municipal taxes."

According to registration documents accessed by DNA, the documents were registered in the second half of June. The per month rent is Rs 50.11 lakh, while the stamp duty paid for the registration of the document is Rs 3.22 lakh. Documents from 2016 shows that for the same property TCS paid Rs 37.81 lakh as per month rent, the deposit then was Rs 1.13 crore and the stamp duty then paid was Rs 3.50 lakh.

According to Pramod Vays, a realtor from South Mumbai, said, "The rate at which the property has been leased is high compared to the ongoing rate in Nariman Point. In other buildings the same office space can be rented out at Rs 250 per sq ft. However, there are many people who opt for Nariman Point and are most banking finance people go to Bandra Kurla complex or people related to the diamond industry." However an email to TCS elicited no response.