Biggest deal: Citi buys Mumbai office space for Rs 985 cr

Global banking major Citigroup has struck the biggest property deal in recent years in the country by paying a hefty Rs 985 crore (Rs 9.85 billion) for six floors in the upcoming First International Financial Centre (FIFC) Tower at the coveted Bandra-Kurla Complex, to house its country headquarters.

Two Citigroup entities--Citibank NA and Citigroup Global Markets--signed the deal to acquire 2,97,000 sqft space which is six full floors of the 12-storey FIFC at BKC for a total consideration of Rs 985 crore, an official said.

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"Citi has signed an agreement to acquire 297,000 sq ft space at the FIFC. This investment represents yet another significant commitment by us to its franchise here," a Citigroup spokesperson said.

The American lender, which already owns an entire building in the financial district constructed on reclaimed land in central Mumbai, will shift its country headquarters to the new building which is located just a block away from its existing headquarters, called the Citigroup Centre.

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"The FIFC will house all key businesses of Citi currently spread across Mumbai and other cities across six floors. The FIFC will be the second landmark property for Citi at BKC after the Citigroup Centre," the spokesperson added.

Apart from the country headquarters, Citi will also consolidate all of its front facing business like consumer, corporate and investment banking divisions, markets, global transaction services under one roof in the newly acquired space while the existing building will be used more for administrative and global functions, sources privy to the deal said.

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The FIFC is promoted by a clutch of US-based investors but it is unclear as to when will Citi property move in.

The investment banking division will be moving in from Nariman Point, while corporate banking, markets and global transaction services will be shifting from the existing building at BKC, they said.

Consumer banking division is currently split between the existing building and two other offices at Chennai and Gurgaon respectively, they said.

"It makes tremendous economic sense to consolidate all your operations in one location," an official, who did not wish to be named, said, when asked about the reason for the move.