The Great Eastern Shipping Com pany (Gesco) has purchased the entire building housing the corporate offices of the German-headquartered multinational, Siemens, located at Worli, in the heart of midtown Bombay.
Although the exact price of the deal has not been revealed officially, sources in Gesco confirmed that 440 million rupees (about HK$94 million) were paid for the 44,000 square feet of commercial space.
The figure paid works out to 10,000 rupees per sq ft, a good rate for the sellers, considering that some offices at Worli are available for 8,000 to 9,000 rupees per sq ft.
Real estate experts are of the opinion that the higher price is unlikely to affect the depressed conditions in the property market, which have persisted over the past two years.
Perhaps two of Gesco's requirements - the company wanted a floor area of more than 40,000 sq ft, and a well-maintained building - worked in Siemens' favour.
The building itself is in prime condition, and Gesco would have virtually no costs for external repairs or renovations.