Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
US-based banking major US Bancorp is in advanced discussions to lease over 650,000 sq ft of office space in Chennai to establish its first Global Capability Centre (GCC) in India. The proposed transaction, reported in the past week, is expected to be executed at Embassy Tech Splendid, a commercial campus owned by Embassy Office Parks REIT. The facility is likely to be developed under a build-operate-transfer model in partnership with Cognizant Technology Solutions, with estimated monthly rentals of INR 4.5-5 crore. The centre will support technology, analytics, and back-office functions, with hiring projected at 3,000-5,000 employees over the next few years. The move reflects continued demand from global financial institutions for large office spaces in India's key technology markets.
US Bancorp is in talks to lease more than 650,000 sq ft of office space in Chennai to establish its first Global Capability Centre (GCC) in India, with discussions progressing in the past week for a large-format commercial transaction at Embassy Tech Splendid, part of the Embassy Office Parks REIT portfolio, as the bank expands its offshore operations footprint. Advertisement
The proposed facility is expected to be developed through a build-operate-transfer arrangement in collaboration with Cognizant Technology Solutions. Under this structure, the technology services firm is expected to initially build and manage the centre before transferring operations to the bank at a later stage. The monthly lease rental for the space is estimated at between INR 4.5 crore and INR 5 crore, positioning the deal among the larger recent office leasing transactions in Chennai's commercial real estate market.
The centre is expected to house a range of functions including technology development, data analytics, and back-office operations that support the bank's global business lines. The move aligns with the lender's strategy of strengthening in-house capabilities in areas such as digital banking, cloud infrastructure, and enterprise technology.
In addition to the Chennai facility, the bank is evaluating further expansion across other Indian cities, with approximately 400,000 sq ft of additional office space under consideration in Bengaluru and Hyderabad. This indicates a phased scaling strategy for its India operations, with multiple delivery centres likely to be established over the coming years.
Industry estimates suggest that the bank plans to recruit between 3,000 and 5,000 employees in India over the next five years to support its technology and operations functions. The expansion comes amid a broader trend of global financial institutions setting up GCCs in India to leverage the country's skilled workforce and cost efficiencies.
Global capability centres have emerged as a key demand driver in India's office leasing market, particularly in cities such as Chennai, Bengaluru, and Hyderabad. Data from property consultants indicates that GCCs account for a significant share of leasing activity by multinational corporations, especially in the banking, financial services, and technology sectors.
Chennai has witnessed sustained interest from global occupiers due to its established technology ecosystem, availability of talent, and relatively competitive occupancy costs. The presence of large office parks and Grade A developments has further supported the city's position as a preferred destination for GCC expansion.
Embassy Office Parks REIT, which owns more than 50 million sq ft of office assets across major Indian cities, has been expanding its Chennai portfolio in response to increasing demand from multinational occupiers, including technology firms and research and development centres.
The proposed transaction underscores continued momentum in India's commercial real estate sector, where large occupiers are securing substantial office space to build long-term operational capabilities, particularly in technology-led functions and global service delivery.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
