Novartis Looks for New Office Space in Mumbai
Novartis Looks for New Office Space in Mumbai [Financial Express (India)]
From Financial Express (India) (September 22, 2012)
Swiss drug maker Novartis is scouting for real estate space in Mumbai to house its new India headquarters, people familiar with the development said.
Novartis has an office in Sandoz House in Worli, occupying an area close to a lakh square feet. The company is said to be looking for space in Lower Parel in central Mumbai.
According to a source, the company plans to take around 1.5 lakh square feet space on lease. Currently the lease rents in Lower Parel range between R130 and R170 per square feet per month. By these estimates, the deal size would be in the range of R23 crore and R31 crore annually."As a policy, Novartis does not comment on market speculation," a Novartis spokesperson told FE in an email.
According to sources, the development is in early stages and Novartis will soon float a requisition for hiring a consulting agency to take the process forward. Pharmaceutical firms have been aggressively looking for real estate space in Mumbai. Major players such as Cipla, Sanofi-Aventis, Pfizer, and Johnson & Johnson have recently started the process of moving into modern buildings with better amenities. According to market estimates, pharmaceutical companies are expected to lease 10-15 lakh square feet of office space in India in the next two years. Large local consumption, abundant talent pool and comparative lower cost in India have led to pharma companies setting up shops in India in the recent past.
Last year, Pfizer consolidated its corporate functioning in Patel Estate in the western suburb of Jogeshwari by taking up around one lakh square feet space, and is believed to be paying a monthly lease rent of about R100 per square feet for it. Johnson & Johnson also picked up two lakh square feet in Oberoi Commerz I in the western suburb of Goregaon last year, and is also believed to be paying close to R100 per square feet as lease rent.
"Most of the pharmaceutical companies are in a consolidation mode so they are looking at having one prime property centrally located and have main operations under one roof and then have 2-3 other offices for backend work," said one of the persons familiar with the development.
Copyright 2012 The Indian Express Online Media Pvt. Ltd., distributed by Contify.com
Credit: Shubhra Tandon
Posted: September 2012