MUMBAI (TIP): The city’s second-biggest ever office purchase marks stunning recovery from lows for its beleaguered commercial property market and may portend a period of rapid growth amidst rising demand and shrinking inventory. In one of the largest front-office transaction, Essel Group, widely known for its media and entertainment business Zee Entertainment EnterprisesBSE -0.61 %, has acquired 2.20 lakh square feet commercial space in Marathon Futurex complex at Lower Parel in Mumbai for overRs 400 crore, said two persons familiar with the development.

The group will be shifting headquarters from Worli to this new office spread over top seven floors of Marathon Realty’s tower II. “Essel Group has identified certain premises in Marathon Futurex at Lower Parel. This is still under process,” said Mukund Galgali, Executive Vice-President, Essel Group. The transaction assumes significance as it signals a dramatic recovery for Mumbai’s commercial property market after three years of sluggish growth. A dull show in the first two quarters of the year was more than offset by a sale plus lease of 1.8 million sq ft in the third quarter alone. This is half of total nine month sales plus lease of 3.6 million sq feet concluded in Mumbai.