May 25 – U.S. banking group Goldman Sachs has signed a deal to lease 1.6 million square feet of office space in Bangalore, in the biggest recorded commercial property deal to date in India. The space is equivalent to nine full sized football fields.
The deal will see the bank initially taking up 1 million square feet followed by another 600,000 square feet in two years. The space, housed in a purpose-built block of three buildings for Goldman, is located on Bangalore’s Sarjapur Outer Ring Road, and is being built on 14 acres by a local developer. Completion is set for 2017.
“India’s economy has had a rough ride recently, and the politicians haven’t helped as much as they could have,” says Chris Devonshire-Ellis of Dezan Shira & Associates. “Yet the basic fundamentals remain strong – a young and increasingly wealthy society, able to both offer low wages on one hand and a buoyant consumer middle class on the other. It pays to be patient in India, however Goldman Sachs’ commitment to this project I think spells out quite clearly the size and direction that opportunities in India are taking.”