This is the largest single office transaction concluded in the micro market of Lower Parel after several years.
In addition to this space, the French company, known for its work in Harry Potter and The Chamber of Secrets among many such titles, also holds a hard option to expand the office by 50,000 sq ft and this option can be exercised in six months at a pre-agreed rental.
The lease tenure will run through five years and the company can extend it by additional five years taking the total tenure to 10 years. Technicolor Creative Studios will be paying rentals of Rs 153 per sq ft a month for the office space excluding common area maintenance charges.
The rent agreement includes a rental escalation clause that will see rentals being revised 15% upwards after the first three years.
“The deal was concluded recently and the company has already started its fit-out work, which is expected to be completed in the next few weeks. Technicolor is expected to start operating from this premises by April or May,” said one of the persons mentioned above.
Technicolor Creative Studios has picked up the fifth floor that runs across three interconnected buildings T1, T2 and T3 in the complex.One International Center houses headquarters of large global and Indian entities including Deloitte that occupies close to 230,000 sq ft, Mondelez’s nearly 70,000 sq ft and Franklin Templeton’s 40,000 sq ft offices.
Technicolor Creative Studios encompasses its visual effects businesses including MPC that has worked on the Oscar-winning 1917 and Oscar-nominated The Lion King remake. Recent work from the studio also includes Ghostbusters: Afterlife, Cruella and West Side Story. Technicolor Creative Services also encompasses The Mill that provides VFX for advertising clients; Mikros Animation; and Technicolor Games.
ET’s email query to Technicolor Creative Studios remained unanswered until the time of going to press, while Nucleus Office Parks declined to comment for the story.
Nucleus Office Parks is the operating platform for offices fully owned by the Blackstone Group in India. It manages the largest commercial real estate holding of around 4.4 million sq ft in Lower Parel business district.
Demand for office spaces has made a strong comeback across key property markets.
Top office markets of India registered total gross leasing activities of 51.6 million sq ft in 2022, which was 36% higher over the last year’s performance. This was historically the second-best year for office transaction volume with the peak achieved in 2019, showed recent data.
Of the total office space absorption, Mumbai recorded 6.4 million sq ft during the year, up 69%. In terms of new supply, the country’s commercial capital has witnessed completions of just 1 million sq ft in the second half of 2022. Lower Parel itself has also witnessed robust leasing momentum over the past year.