Reliance Nippon Life Insurance (RNLI) has taken a 40,000 sq ft space on a five-year lease at an Adani Realty project in the BKC business district to house its corporate headquarters, officials said on Wednesday.
Rental details of the transaction, one of the largest in recent times, were not immediately available. “RNLI has signed up to have 40,000 sq ft in Bandra Kurla Complex’s (BKC) Adani Inspire for five years,” a source said. When contacted, RNLI’s chief executive and managing director Ashish Vohra confirmed the development while officials at Adani Realty were not available for comment.
“Corporate office relocations are a matter of long term commitment and the recovered business sentiment regarding the value of life insurance product gives us the confidence to make this decision. BKC is a prominent and centrally-located business district,” Vohra told PTI.
This is the second big deal clinched by Adani Realty for the 8 lakh sq ft project in BKC, after Japanese lender MUFG took 30,000 sq ft in the commercial property on a ten-year lease. A slew of banks, finance companies, and insurance players have their head offices in the BKC business district.
The city’s realty market had been impacted because of oversupply and high prices, which only aggravated because of the economic impact of the pandemic. However, policy measures like a halving of duties for a limited period and interest rates being at 15-year lows have led to some revival.
The pandemic and the ensuing shift to work from home models because of the lockdowns had resulted in concerns for the commercial realty market, as there is a view that demand for space may be hit as companies may not require space to house staff. RNLI will be moving to space from Reliance Centre in nearby Santacruz, whose possession has been taken over by Yes Bank NSE -3.74 % for non-payment of loans.
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