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MUMBAI: In the largest commercial space transaction this year, global investment bank Morgan Stanley has picked up around 1.1 million sq ft office space on a long-term lease at Oberoi Realty’s under-construction commercial tower Commerz III in Goregaon suburb of Mumbai.

The lease tenure is set at 9.5 years and the project is expected to be ready in 2023. ET was first to report the deal in November 2019. Both the entities have now concluded the transaction that is largest both in terms of volume and value.

The deal assumes significance not only for the size but also because Morgan Stanley has pre-committed to the under-construction office space as against the usual practice of leasing ready properties.

Morgan Stanley will be consolidating its Mumbai Global In-house Centre (GIC) operations to this single campus in the city. The investment bank established the Mumbai GIC in 2003 and the Bengaluru GIC in 2014 to support its global institutional securities, wealth management and investment management businesses.

“We believe that bringing together our Mumbai GIC operations into one centralized campus will serve as a catalyst to creating further agility and synergy across all the GIC functions. The investment is a testament to the Firm’s commitment to India and our staff,” Robert Rooney, Global Head of Technology, Operations and Fusion Resilience, Morgan Stanley.

Supporting Morgan Stanley’s global Institutional Securities, Wealth Management and Investment Management businesses, the firm established the Mumbai GIC in 2003 and the Bengaluru GIC in 2014.

Currently, Morgan Stanley India GICs house functions across technology, operations, fund services and finance, as well as specialized groups such as legal and compliance, corporate services, human resources operations and internal audit amongst others. GIC operations in Mumbai are delivered out of three locations.

“Attracting and retaining world-class talent continues to be a top priority for us. The new facility in Mumbai will provide us with the right infrastructure and resources to deliver an innovative workplace environment and promote increased productivity and engagement through efficient ways of working,” said Thomas Nides, Vice Chairman, Morgan Stanley.

Morgan Stanley has operated in India since 1993, and has an institutional securities platform, offering a range of investment banking, capital markets, equities, fixed income, private equity and derivative products, research, as well as growing investment management businesses.

“Our relationship with Morgan Stanley goes back to 2007 and we are delighted to have them as our anchor tenant in this world class building. This is one of the largest office space transactions ever and proves our ability to grow the commercial vertical in the coming years…Our commitment to our annuity portfolio remains strong while we continue to capitalize on opportunities in the residential sector,” said Vikas Oberoi, CMD, Oberoi Realty.

Commerz III is a 2.3 million sq ft mixed-use building and a part of total 80-acre project Oberoi Garden City.

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