HDFC Bank has secured a long-term lease for an entire 8-storey building with office space spanning 4 lakh sq ft in the Mindspace Airoli West commercial complex in Navi Mumbai. The lease, which spans 10 years, was confirmed by individuals familiar with the development.

Under the terms of two separate agreements signed with the landlord, Mindspace Business Parks REIT, the bank will pay over Rs 3.20 billion in rentals, with a 15 per cent escalation every three years. This marks one of the largest office lease deals concluded this year.

The newly leased office, comprising a basement, ground floor, and eight upper floors, is expected to play a pivotal role in HDFC Bank's operations, supporting its expansion and efficiency goals. Previously, the bank operated from a few floors in another building within the same complex.

According to one agreement registered on November 13, the lease will commence on January 1, with HDFC Bank paying a security deposit of Rs 50.81 million, equivalent to six months' rent. This information was derived from documents obtained via realty data analytics firm Propstack.

Mindspace Business Parks REIT, backed by K Raheja Corp, has received government approval to convert the building into a non-processing area. This follows an amendment to the SEZ Rules, 2006, allowing partial and floor-wise denotification of special economic zones.

Other key occupants in Mindspace Airoli West include Dow, Accenture, IDFC, Princeton Digital, and Technimont.

In a related development, HDFC Bank has initiated the sale of non-core real estate assets in key urban locations as part of its post-merger integration with HDFC. This strategic move aims to streamline the bank's property portfolio and generate additional liquidity to bolster its strong financial position.