BNP Paribas has leased approximately 500,000 sq ft of office space at One Radial in Chennai through a ten-year agreement, according to an Economic Times report updated on 12 October 2026. The transaction covers four floors and was described as one of Chennai’s largest office leases of the year.
The leased area is substantial, but it should not be described as a property acquisition or a ₹500,000-sq-ft investment by the bank. BNP Paribas will occupy space under a lease, while the campus is held through Radial IT Park Private Limited, in which Mindspace Business Parks REIT acquired a 51% interest in June 2026. The remaining 49% is held by 360 ONE and its affiliates, according to Mindspace REIT’s official acquisition disclosure.
What is known about the lease
The Economic Times reported that the bank’s space is distributed across four floors and that the lease runs for ten years. The report did not publicly disclose the complete rent schedule, security deposit, commencement date, escalation structure or lock-in terms.
It cited prevailing rentals in the area at about ₹90 per sq ft per month. That market indication should not be multiplied by the entire leased area to claim an exact contract value: commercial agreements can include rent-free periods, fit-out arrangements, maintenance charges, parking rights and staggered handovers.
BrickBharat did not locate a BNP Paribas announcement or a fresh Mindspace stock-exchange filing naming the tenant. The lease details therefore remain attributed to the cited report rather than independently confirmed from the underlying registered document.
One Radial’s place in Mindspace REIT’s Chennai portfolio
Mindspace REIT’s official acquisition page describes One Radial as a two-tower office campus of approximately 2.6 million sq ft on Pallavaram–Thoraipakkam Road. Each tower contains about 1.3 million sq ft of leasable space.
The REIT completed its acquisition of a 51% stake in the asset-owning entity on 8 June 2026. Its published acquisition information placed Tower 1 at approximately 87% leased and Tower 2 at about 28% leased at that point. Those figures describe the asset around acquisition and should not be presented as current post-BNP occupancy without a later portfolio disclosure.
Mindspace said the One Radial transaction carried a gross acquisition price of ₹3,000 crore and was debt-funded. Together with its Commerzone Pallikaranai acquisition, the transaction expanded the REIT’s Chennai portfolio to approximately 6.3 million sq ft. The BNP lease is a subsequent occupier transaction within that enlarged portfolio, not another acquisition by the REIT.
Why the deal matters for Chennai commercial real estate
A half-million-square-foot commitment from an international bank supports Chennai’s position as a large corporate-office and global-capability-centre market. Long-duration leases can improve income visibility for landlords, although the financial contribution depends on possession, rent commencement and the negotiated commercial terms.
For occupiers, the Pallavaram–Thoraipakkam Road corridor offers access to southern Chennai’s residential and technology catchments. The practical quality of that access still depends on employee travel patterns, public transport, road congestion and the facilities attached to the specific workplace.
One transaction cannot establish a citywide rise in rents or demand. The more useful market signals will be subsequent leasing at One Radial, occupancy across comparable buildings and the pace at which new Chennai office supply is absorbed.
What REIT investors should watch
For Mindspace REIT investors, the relevant questions are when the premises are handed over, when rent begins and how the lease affects committed and operating occupancy. A signed lease may precede fit-outs and revenue recognition.
Mindspace reported a total portfolio of 46.2 million sq ft and 92.1% committed occupancy when its recently acquired Chennai assets were included as of 30 June 2026. Those portfolio figures pre-date the newly reported lease and should not be recalculated without an official update.
The transaction is therefore best read as evidence of leasing momentum at a recently acquired Chennai campus—not as confirmation of immediate rental income, a new development approval or ownership by BNP Paribas.
Sources and verification
- The Economic Times — BNP Paribas leases 5 lakh sq ft at Mindspace REIT’s Chennai complex. Updated 12 October 2026, 1:38 AM IST.
- Mindspace Business Parks REIT — One Radial acquisition details. Accessed 13 October 2026; the page states acquisition completion on 8 June 2026.
- Mindspace Business Parks REIT — Investor-relations overview. Portfolio information stated as at 30 June 2026; accessed 13 October 2026.