Broking firms in spread mode, lap up properties on the quick

Mumbai-based domestic broking house, Motilal Oswal Securities, has bought 15,000 square feet of prime property at Hoechst House in south Mumbai.

This is in addition to the 7,000 sq feet, the company already occupies at Bajaj Bhavan, Nariman Point, Mumbai's commerical hub.

The broking firm is in an expansion mode. It will shift the key team members to the new office.

Confirming the development, Motilal Oswal, chairman and managing director, Motilal Oswal Securities, said, "We want to grow our team. The institutional desk will be shifted to the new property along with the key members. Our portfolio management service and broking businesses have done well and we want to build our strength in commodities and mutual fund distribution."

Edelweiss Capital has been the other broking outfit, which has bought out property in south Mumbai. The firm has already has acquired 22,000 sq feet in the last 12 months and plans to add another 10,000 sq feet space in Mumbai.

It has acquired more than 15,000 sq feet across other cities "" Ahmedabad, Bangalore, Hyderabad & Gurgoan. It plans to add around 8,000-10,000 sq feet additional space in other cities, said a senior Edelweiss executive.

In the financial market, Fidelity Mutual Fund has been the other big acquirer of prime property in the last one year. To start its Indian operations, it had leased 4,000 sq feet of property in Maker Chambers VI, Mumbai.

With volumes getting larger and most broking firms getting into other value chain from distribution of financial product to commodity businesses, the demand for prime property is expected to grow in the coming days, market sources said.

By March 2006, Edelweiss plans have 50,000 square feet space. Of this, 30,000 sq feet will be in Mumbai and the rest in other parts of the country, added the Edelweiss executive.