(Bloomberg) -- Standard Chartered Plc will rent space in an Indian project being developed by a local builder and Singapore's sovereign wealth fund to create one of its biggest campuses.
The London-based bank's Standard Chartered GBS unit will lease 770,000 square feet for 15 years in the southern Indian city of Chennai, in a project being developed by DLF Ltd. and GIC Pte., DLF's Executive Director Amit Grover said by phone on Wednesday. He declined to share a deal value citing client confidentiality.
Standard Chartered could pay as much as 1 billion rupees ($14 million) each year, according to the Economic Times, which reported the deal earlier without saying where it got the information. Construction began in January 2020 and is scheduled to be completed in phases over three to six years, according to DLF's website.
Read more: Brookfield Invests $2 Billion in Biggest India Property Deal
It's rare for a large firm to commit to under-construction projects in India. However, India's office-property market has been gaining the attention of large global buyers in recent years, with investors including Blackstone LP and Brookfield Asset Management Inc. looking to purchase rent-yielding local properties backed by marquee clients.
A representative for Standard Chartered didn't immediate reply to an email. DLF shares extended gains after the announcement, ending 2.8% higher in Mumbai on Wednesday.
Rentals aren't very different from levels seen before the coronavirus pandemic, Grover said.
“It will involve three years for construction and a 15-year relationship on the lease, so it's an 18-year relationship,” Grover said. “Matured partners don't look at short term impact.”
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