Parsvnath leases 74,000sq ft office area to WHO, Facebook India

New Delhi: Realty firm Parsvnath Developers has leased about 74,000 sq ft office space to the WHO and Facebook India in central Delhi and will earn Rs 83 crore rent annually from this fully-leased commercial complex.

Parsvnath has completed the first phase of its commercial project at Gole Market comprising 2.26 lakh sq ft of office space. The construction work on the second phase having 1.3 lakh sq ft will be delivered by December this year.

"We have leased the remaining 74,000 sq ft of office space to the WHO and Facebook India Online Service Pvt Ltd in our commercial complex at Bhai Veer Singh Marg near Gole Market. Now, the first phase is fully leased out," Parsvnath Chairman Pradeep Jain told PTI.

While the World Health Organisation (WHO) has taken on lease about 50,700 sq ft of office space for its headquarter, Facebook India has taken 23,000 sq ft area, Jain said.

When asked about the rental, he declined to share the amount at which these fresh leasing transactions have been executed.

However, Jain said the company will earn an overall rent income of Rs 83 crore from the first phase of this project, comprising 2.26 lakh sq ft of office space.

Earlier, the company had leased space to Aditya Birla, Thomson Reuters, Indiabulls, SBI, ICCI Prudential, Axis Bank, Regus, Loreal and Cafe Coffee Day Express in the first phase.

Jain said the company is now constructing the second phase of this commercial complex 'Parsvnath Tower' comprising 1.3 lakh sq ft and the work will be completed by year end.

Last year, Parsvnath Developers gave exits to private equity firms like Red Fort Capital and Proprium Capital through buy-back of their investments in this project for nearly Rs 500 crore.

The company now owns 100 per cent stake in its subsidiary Parsvnath Estate Developers, which is developing this office building project.

Parsvnath had raised funds from a NBFC through lease rental discounting (LRD) to provide exits to these PE firms.

With commercial real estate business doing better than the residential segment, Jain said the company is developing another commercial building on KG Marg in central Delhi and is targeting to complete this project in 2017 itself.

Parsvnath, which reported Rs 26 crore net loss in the first quarter of the 2017-18 fiscal, is among the companies facing probe by Sebi in suspected shell companies.

On August 11, the Securities Appellate Tribunal (SAT) lifted Sebi's restrictions on trading in shares of Parsvnath Developers.

Parsvnath Developers has so far completed 65 projects measuring 28.29 million sq ft and is currently developing 54.63 million sq ft. It has a land bank of 101.71 million sq ft.