M A R K E T B E AT Office Q4 2019

2019: Gross leasing activity at an all time high Gross leasing activity at 4.78 msf in Q4, was up by 22.5% q-o-q. A strong finish to the year was characterised by nearly 2 msf of pre-commitments and 1.4 msf of term renewals in the quarter. On a y-o-y basis, gross leasing in Mumbai rose to 13.95 msf in 2019, a threefold growth over 2018. The submarkets of -, -Belapur Road, and Central Suburbs along with - were the main contributors to the 5.18 msf NET ABSORPTION (2019) leasing activity during the year. During 2019, the IT-BPM sector contributed a 30% share to the term renewal activity, followed by BFSI and captive centres with 19% and 14% share, respectively. In terms of fresh leasing activity including pre-commitments, captive centres recorded the maximum share (31%), followed by IT-BPM and professional services with 13% and 11% share, respectively. Flexible workspace operators 5.21 msf NEW COMPLETIONS (2019) accounted for a 9% share of fresh leasing activity during the year. The overall net absorption in 2019 was 5.18 msf; up by 63% on a y-o-y basis. The momentum in leasing activity and pre-committed space becoming operational during the year pushed net absorption to a seven-year peak in the Mumbai office market during the year. 20.10 msf UPCOMING SUPPLY (2020F – 2022F) Quality supply aided a strong leasing momentum in 2019; supply pipeline to provide further impetus A total new supply of 5.21 msf was added during 2019, which is marginally lower by 6.8% y-o-y. Malad–Goregaon, Thane-Belapur Road and BKC submarkets were the major supply contributors during the year. At end-Q4 2019, the overall vacancy fell to a seven-quarter low to be at 18.8% with the strong demand momentum during the year resulting in healthy occupancy levels in new, prominent project completions as well. MARKET INDICATORS OVERALL A total of nearly 20.10 msf of upcoming supply is in the pipeline by end-2022 with Thane-Belapur Road (), Lower - and Q4 2019 Malad-Goregaon submarkets expected to contribute a larger share towards this projected supply. Nearly 15-20% of this upcoming supply is already pre-committed across various occupiers from the IT-BPM segment and captive centres of BFSI and professional services firms. Going 12 month forward, we expect occupiers from the above-mentioned categories along with BFSI and flex space operators to aid the demand momentum, Q4 2018 Q4 2019 Forecast across the key submarkets of Malad-Goregaon, BKC, Lower Parel-Worli and further in the Thane-Belapur Road and Central Suburbs corridors. Overall 19.9% 18.8% Vacancy Marginal rental growth in select submarkets; similar trend to continue over the next 12-18 months Select submarkets - Thane-Belapur Road, Powai, Malad-Goregaon, Lower Parel, BKC and Andheri-Kurla witnessed marginal rental growth during Weighted Average the quarter, driven by robust demand in key projects in these corridors. A low vacancy environment is likely to prevail and coupled with signs of Net Asking Rents 260.9 263.0 SBD healthy leasing activity in the coming quarters as well, the submarkets of BKC, Malad-Goregaon, Powai and Central Suburbs are expected to (INR/sf/month) show moderate rental gains in the coming year. Rents in other submarkets are likely to exhibit stability or show marginal increase during the same period. YTD Net 3,178,483 5,229,146 Absorption (sf) NET ABSORPTION & NEW SUPPLY OVERALL VACANCY & WEIGHTED AVERAGE ASKING RENT 10.0 140.0 25.00% 120.0 20.00% 8.0 100.0 15.00% 6.0 80.0 60.0 10.00% 4.0 40.0 5.00% 2.0 20.0 0.0 0.00% 0.0 2016 2017 2018 2019 2020F

NET ABSORPTION (MSF) NEW SUPPLY (MSF) WEIGHTED AVERAGE RENTS (INR/SF/MONTH) OVERALL VACANCY(%) M A R K E T B E AT MUMBAI Office Q4 2019

MARKET STATISTICS

YTD GROSS PLANNED & UNDER GRADE A WTD. AVG. RENT* INVENTORY YTD CONSTRUCTION YTD NET SUBMARKET VACANCY RATE (%) LEASING CONSTRUCTION (SF) COMPLETIONS (SF) ABSORPTION (SF) ACTIVITY# (SF) (SF)^ INR/SF/MO US$/SF/YR EUR/SF/YR

CBD 1,962,814 7.4% 119,133 0 0 33,164 245.0 41.3 37.3 SBD 9,475,713 15.5% 1,028,235 1,462,755 951,010 712,070 263.0 44.29 40.0 Worli 1,604,000 13.4% 43,882 800,000 0 21,697 222.3 37.4 33.8 Lower Parel 7,823,703 13.3% 850,656 3,751,618 281,230 56,803 180.0 30.3 27.4 Andheri-Kurla 13,742,300 18.1% 1,543,318 1,575,000 655,877 973,040 132.0 22.2 20.1 Powai 6,325,576 6.3% 1,686,286 560,000 198,000 347,714 141.8 23.9 21.6 Malad/Goregaon 12,751,784 20.4% 4,119,880 3,200,000 1,200,000 699,889 110.0 18.5 16.7 Central Suburbs 10,696,532 25.7% 1,528,163 2,288,986 193,200 1,192,008 144.8 24.4 22.0 1,619,500 11.2% 156,821 0 0 -2,511 94.5 15.9 14.4 Thane-Belapur Road 19,902,416 26.0% 2,357,439 3,859,428 1,144,000 1,000,743 67.0 11.3 10.2 Thane 7,764,977 16.5% 463,645 2,600,000 586,000 122,747 69.4 11.7 10.6 TOTAL## 94,546,615 18.8% 13,954,017 20,097,787 5,209,317 5,178,134 121.6 20.5 18.5

The report highlights Grade A details only. Certain indicators are historically corrected by addition / deletion of older / refurbished projects as per grade A classification and accounting for changes in built-up / leasable area besides adjusting tenant leases to reflect accurate market conditions. ^ Includes planned & under construction projects until 2022 Rohan Sharma Net absorption refers to the incremental new space take-up Director, Research Services #YTD gross leasing activity includes pre commitments and term renewals *Weighted average asking rental rates for vacant spaces that provide core facility, high-side air conditioning and 100% power back up +91 124 4695555 /[email protected] ## Total figures contain submarkets not mentioned above IT-BPM – Information Technology – Business Process Management Kapil Kanala Key to submarkets: Associate Director, Research Services CBD – Ballard Estate, , , & ; SBD – -Kurla Complex, Bandra East, Kalina; Lower Parel includes Lower Parel, Parel and US$ 1 = INR 71.26 € 1 = INR 78.92 +91 40 40405555 /[email protected] Numbers for the fourth quarter are based on market information collected until 20th December 2019 KEY LEASE TRANSACTIONS Q4 2019 cushmanwakefield.com PROPERTY SUBMARKET TENANT SF TYPE

Nirlon Knowledge Park – Phase V Malad – Goregaon JP Morgan Chase 1,200,000 Pre-commitment A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION Oberoi Commerz - 3 Malad – Goregaon Morgan Stanley 800,000 Pre-commitment Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for Nesco IT Park – Building 4 (Phase 2) Malad – Goregaon KPMG 177,306 Fresh Lease real estate occupiers and owners. Cushman & Wakefield is Thane – Belapur Road L&T Infotech 143,433 Expansion among the largest real estate services firms with Mindspace – Building 8 approximately 51,000 employees in 400 offices and 70 countries. In 2018, the firm had revenue of $8.2 billion SIGNIFICANT PROJECTS PLANNED AND UNDER CONSTRUCTION across core services of property, facilities and project PROPERTY SUBMARKET MAJOR TENANT SF COMPLETION DATE management, leasing, capital markets, valuation and other services. Oberoi Commerz – 3 Malad – Goregaon Morgan Stanley 2,000,000 Q4 2022

Rupa Renaissance ©2019 Cushman & Wakefield. All rights reserved. The information Thane – Belapur Rad NA 1,400,000 Q1 2021 contained within this report is gathered from multiple sources believed to be reliable. The information may contain errors or omissions and is TCS Olympus – 2 Thane TCS 1,300,000 Q1 2020 presented without any warranty or representations as to its accuracy. Nirlon Knowledge Park – Phase V Malad – Goregaon JP Morgan Chase 1,200,000 Q4 2020