Citigroup’s Rs. 985 crore office space buyout creates history

Where the condition of the real estate market is dismal, Citigroup, US banking giant has on Tuesday closed the biggest commercial property deal. The group bought six floors of office space in Mumbai’s Bandra- Kurla complex for Rs. 985 crore for establishing its India’s headquarters. Two citigroup entities- Citibank and Citigroup global markets have taken around 2,97,000 sq ft. at First International Finance Centre (FIFC), an upcoming office tower which is a block away from the current Citigroup centre. These investments represent the commitment of citi to its franchise in India. Citi is expected to shift its consumer facing business such as finance, core banking and private banking to FIFC, whereas departments like administrative, legal and HR would be left at the Citigroup Centre. Citgroup institutional brokerage, research and investment banking businesses will be shifted to FIFC from Nariman Point. FIFC would also accommodate some businesses from Gurgaon and Chennai. Most of the consideration for the contract has already been paid by the group. According to a person familiar with the deal, the last installment would be paid in June. Around 90 percent of the new building is ready and is expected to be handed over to their owners in the next few months.