Teva Pharma Leases 5 Floors in Mumbai Complex
To pay Rs 20-cr rent for 150,000 sq ft in Goregaon; may be made India headquarters
Teva Pharma has leased 150,000 sq ft across five floors in an office complex in Mumbai, making it one of the major leasing deals here this year.
The global drug maker would pay about Rs 20 crore as rent for the office space in Oberoi Commerz II in Goregaon area, a source said. Teva is expected to move its India headquarters to the complex, the source said.
The global drug maker would pay about Rs 20 crore as rent for the office space in Oberoi Commerz II in Goregaon area, a source said. Teva is expected to move its India headquarters to the complex, the source said.
Oberoi Realty Chairman and Managing Director Vikas Oberoi was unavailable for comments. Teva could not be reached for comments either.
Ashok Kumar, managing director at Gennex Partners, said the deal was in line with the market as Oberoi properties command premium rates in the area.
Last year, pharma major Abbott had purchased 500,000 sq ft in Godrej BKC in Bandra-Kurla Complex for about Rs 1,400 crore, marking one of the biggest transactions in the space.
In recent years, pharma companies have been looking to monetise their land parcels or closed plants in the Mumbai Metropolitan Region.
Last year, US-based Cabot Corporation sold 30 acres Ghansoli area here to K Raheja Corp for Rs 210 crore. That year, Pfizer sold its plant in Thane for Rs 178 crore to Vidhi Research and Development. Pfizer had shut its manufacturing facility there. In another instance, Sandoz, the generic division of Novartis, announced it would discontinue operations at its Turbhe site by the end of December 2016. It is not clear whether Sandoz would sell the plant and the property.
The two plant closures were because of consolidation of manufacturing facilities, with older facilities being shut down and work moving to modern ones.
Sources said GSK Pharma was also selling its land parcel in Thane. It had earlier dropped plans to sell the plot due to legal hurdles.
According to Colliers International, about 1.8 million sq ft of new supply was added in Q2 2016. Rents would remain stable in the coming quarters, it said. Mumbai office absorption at 0.71 million sq ft has witnessed a downward spiral with a 23 per cent decrease in total absorption since Q1 2016, as mostly mid-sized transactions have occurred in Q2 2016, it said.
PHARMA’S REALTY MOVES
- Abbott buys 500,000 sq ft office in Godrej BKC for Rs 1,400 crore
- Pfizer sells Thane plant for Rs 178 crore to Vidhi Research and Development
- Sandoz to discontinue operations at its Turbhe plant by end-December 2016
- GSK Pharma may sell its Thane land parcel
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