DELHI: Bank of India is buying 36,000 sq ft of office space in the upmarket Connaught Place of Delhi from Standard Chartered Bank for about Rs 125 crore, according to people close to the deal.
Bank of India's bid was the highest from among a clutch of public sector banks and high networth individuals. The property stands on the outer circle of Connaught Place, the most sought after business address in the capital.
According to property consultancy CBRE, Connaught Place is ranked the fifth most expensive office market in the world, much ahead of Mumbai's Bandra Kurla Complex (ranked 11th) and Nariman Point (26th). The bid process was managed by property consultancy Jones Lang LaSalle. Standard Chartered declined comment on the transaction. Bank of India did not respond to an email sent by ET.
The property in the H-block of Connaught Place was originally taken by Standard Chartered Bank several years ago on a perpetual lease. While selling, however, the bank has applied for conversion into freehold, which would improve its value.
The property also fetched a premium because of the fact that it is not part of a large office building where usually there is wastage of 25-30% space between super and covered areas, for which the buyer has to pay.