Federal Bank buys office space in Mumbai’s Wadala area for

Kochi-based Federal Bank has bought around 1.01 lakh sq ft of office space spread across five floors for ₹330 crore in Mumbai’s Wadala area in a building known as VIOS Tower, documents accessed by Propstack showed.
The Kochi-based bank has bought the office space with a total carpet area of 101400 sq ft from an institutional investor NCP Commercial, which is a part of global investment major Varde Partners, the documents showed.
The document was registered on October 30, 2024. The deal was for ₹329.55 crore, the documents showed.
The financial institution has bought 21453 sq ft on the 12th floor, 15481 sq ft on the 13th floor, 21506 sq ft on the 14th floor, 21454 sq ft on the 15th floor and 21506 sq ft on the 16th floor, the document showed.
The bank will also get access to 145 car parkings in the ground plus 28-storey building. The bank has paid a stamp duty of ₹19.77 crore for the deal, it showed.
There was no response from Federal Bank or from JLL India, the transaction advisor. The story will be updated once a response is received.
The building was constructed almost six years back and is spread across 29 floors and is part of a 22-acre mixed use development.
“Whenever a bank chooses to buy corporate office space in Mumbai, it shows a strategic and long term intent to grow the business. Similarly, in this case, the move to buy instead of lease reflects the confidence in the macro business environment and the banks ability to participate in the growth story,” Raja Seetharaman, co-founder Propstack told HT.com
“We’ve seen multiple domestic banks purchase commercial space in Mumbai over the last few quarters. On the other hand, international financial institutions have been leasing significant space for the long term. Banks with strong earnings and capital tend to benefit from tax advantages when they purchase properties. Over time this can also lead to capital appreciation. Besides they have more control on the costs including any rent increases and other factors that may have an impact on the business,” he added.
Earlier this year, Unity Small Finance Bank purchased commercial properties in two separate locations in Mumbai in deals valued at around ₹400 crore, property registration documents showed.
Also Read: Unity Small Finance Bank buys commercial properties worth ₹400 crore in Mumbai
Commercial real estate experts said that there has been an increase in the number of corporates buying commercial real estate space rather than going in for lease. Larger corporates and business conglomerates, particularly from technology and BFSI sector, having clarity over long-term real estate requirements, perhaps find it economically more viable to own commercial assets, they said.
Also Read: Bandhan Bank had purchased 12 commercial units in Mumbai’s BKC for ₹135 crore earlier this year.