March 05, 2025
One World Center Private Limited: Ratings upgraded and assigned for enhanced
amount
Summary of rating action
Previous Rated Amount Current Rated Amount
Instrument* Rating Action
(Rs. Crore) (Rs. crore)
[ICRA] A- (Stable); upgraded from
Long-term – Fund-based – Term
2500.00 2700.00 [ICRA] BBB+ (Stable)/ Assigned for
Loan
enhanced amount
Total 2500.00 2700.00
*Instrument details are provided in Annexure-I
Rationale
The rating upgrade for One World Center Private Limited (OWCPL) factors in the increase in committed occupancy of the
commercial office asset, One World Center, and the consequent improvement in the debt coverage metrics. The committed
occupancy for the asset increased to 85% as of November 2024 from 78% as of December 2023. The company is in advanced
discussions with prospective tenants and the occupancy is likely to reach 90% by March 2025. The company’s debt coverage
metrics are expected to be comfortable with 5-year average DSCR of 1.35-1.40 times in FY2025-FY2029, supported by increase
in rental income on account of improved leasing and back-ended repayment schedule for the LRD loans.
The rating continues to factor in the attractive location of the company’s commercial project in Lower Parel, Mumbai, which
is a well-developed commercial location. Additionally, OWCPL’s strong sponsor profile, which holds a 100% stake in the
company through its affiliates, i.e. entities owned or managed by The Blackstone Group Inc provides comfort. The strong track
record of the sponsor in developing and operating commercial real estate assets in India and commands exceptional financial
flexibility. The sponsor has a strong track record of developing and operating commercial real estate assets in India and
commands exceptional financial flexibility. The LRD loan has an escrow mechanism and a debt service reserve account (DSRA)
equivalent to three months of principal and interest obligation.
The rating is however, constrained by the company’s high leverage with expected total external debt/annualised NOI of ~7.4-
7.5 times as of March 2025 and ~7.0-7.1 times as of March 2026 and modest cumulative DSCR. The company’s debt coverage
ratios are vulnerable to increase in interest rates and vacancy levels. The company faces residual market risk for the 15% vacant
area as of November 2024, while it also remains exposed to vacancy risk given the low weighted average lease expiry as
compared to the weighted average debt maturity. OWCPL also faces a renewal risk with 15% of the leased area due for lock-
in expiry in FY2026 and 22% for the lease expiry in FY2026, and any significant, prolonged vacancy could impact the company’s
cash flows and exert pressure on the company’s debt coverage metrics. Nonetheless, the risk is partly mitigated by the
property’s favourable location and the sponsor’s strong track
The Stable outlook reflects ICRA’s opinion that the company will be able to further ramp up occupancy levels in the near term
supported by attractive project location and maintain comfortable debt coverage metrics in the medium term.
Key rating drivers and their description
Credit strengths
Improvement in occupancy levels; comfortable medium-term DSCRs – The committed occupancy for the asset increased to
85% as of November 2024 from 78% as of December 2023. The company is in advanced discussions with prospective tenants
and the occupancy is likely to reach 90% by March 2024. The company’s debt coverage metrics are expected to be comfortable
[Link] .in Page | 1
with 5-year average DSCR of 1.35-1.40 times in FY2025-FY2029, supported by increase in rental income on account of improved
leasing and back-ended repayment schedule for the LRD loans.
Favourable location of the property - One World Center (OWC) is in Lower Parel, Mumbai, adjacent to the 100-ft wide arterial
road, Senapati Bapat Marg (Tulsi Pipeline Road). It is centrally located between Nariman and the BKC area. It is well connected
through road and rail network, which is likely to help OWCPL improve the occupancy over the medium term.
Strong sponsor group with established track record lends financial flexibility - The company is completely owned by the
Blackstone Group, which is one of the leading owners of office spaces in India, with a large portfolio of office properties across
Bengaluru, Pune, Hyderabad, Mumbai, the National Capital Region (NCR) and Chennai. The sponsor has established leasing
relationships with several blue-chip multinational companies as well as Indian corporates. Its strong track record in the real
estate sector, diverse portfolio in the retail and commercial real estate business in India, provide comfort and allow it to
command exceptional financial flexibility. The Blackstone Group has a demonstrated track record of providing timely funding
support to OWCPL whenever required in the past. ICRA expects continued funding support from sponsors to support any cash
flow mismatches, if required.
Credit challenges
High leverage and modest cumulative DSCR - The company’s leverage as measured by Total external debt/Annualized NOI
remains high and is estimated to be ~7.4-7.5 times as of March 2025 and ~7.0-7.1 times as of March 2026. Despite the tenure
elongation following the refinancing in January 2024, the cumulative DSCR for the debt tenure remains modest. The company’s
ability to further improve occupancy levels and realize contractual rental escalation in a timely manner will be important from
the credit perspective.
Exposed to market risks – The company faces residual market risk for the 15% vacant area as of November 2024, while it also
remains exposed to vacancy risk given the low weighted average lease expiry as compared to the weighted average debt
maturity. OWCPL also faces a renewal risk with 15% of the leased area due for lock-in expiry in FY2026 and 22% for the lease
expiry in FY2026, and any significant, prolonged vacancy could impact the company’s cash flows and exert pressure on the
company’s debt coverage metrics.
Vulnerability of debt coverage ratios to changes in interest rate and occupancy levels - The cash inflow is susceptible to
volatility in occupancy or rent rates, while the cash outflow is relatively fixed in nature except for any fluctuations in interest
rates.
Liquidity position: Adequate
The company’s liquidity is adequate, marked by free cash and bank balances including undrawn overdraft of around Rs. 159.1
crores as of December 2024. The company’s cash flows from operations are expected to be sufficient to cover the debt
obligations of Rs. 219 crores in FY2025 and Rs. 235 crores in FY2026.
Rating sensitivities
Positive factors – Sustained and significant improvement in leverage and coverage metrics backed by improved operational
cash flows and/or substantial reduction in debt could lead to a rating upgrade. Specific trigger for a rating upgrade includes
cumulative DSCR improving to more than 1.25 times.
Negative factors – Significant increase in vacancy leading to weakening of coverage metrics and liquidity positions, on a
sustained basis, would lead to a downgrade in the rating.
[Link] .in Page | 2
Analytical approach
Analytical Approach Comments
Corporate Credit Rating Methodology
Applicable rating methodologies
Realty – Lease Rental Discounting
Parent/Group support NA
Consolidation/Standalone Standalone
About the company
One World Center Private Limited (OWCPL), erstwhile BXIN Office Parks India Private Limited, incorporated in April 2020, owns
and operates a commercial office building One World Center in Lower Parel, Mumbai, with a total leasable area of 17.4 lakh
square feet, across four towers viz. Tower 1, 2A, 2B and the annexe.
Key financial indicators (audited)
One World Centre Private Limited FY2023 FY2024
Operating income 313.3 303.6
PAT -7.2 -14.5
OPBDIT/OI 71.1% 75.1%
PAT/OI -2.3% -4.8%
Total outside liabilities/Tangible net worth (times) -2.0 -1.9
Total debt/OPBDIT (times) 11.9 11.2
Interest coverage (times) 1.0 0.9
Source: Company, ICRA Research; All ratios as per ICRA’s calculations; Amount in Rs. crore; PAT: Profit after tax; OPBDIT: Operating profit before depreciation,
interest, taxes and amortisation. NA: not available
Status of non-cooperation with previous CRA: Not Applicable
Any other information: None
Rating history for past three years
Current (FY2025) Chronology of rating history for the past 3 years
Amount FY2025 FY2024 FY2023 FY2022
Instrument
Type Rated
Date Rating Date Rating Date Rating Date Rating
(Rs. crore)
Fund-based Mar 05, [ICRA] A- Jan 29, [ICRA] BBB+ July 22, [ICRA] BBB
- -
– Working Long 2025 (Stable) 2024 (Stable) 2022 (Stable)
2700.00
Capital Term Mar 21, [ICRA] BBB+
- - - - - -
Limits 2023 (Stable)
July 22, [ICRA] BBB
Non-fund Short - - - - - -
0.00 2022 (Stable)
based Term
Mar 21, [ICRA] BBB+
- - - - - -
2023 (Stable)
Complexity level of the rated instruments
Instrument Complexity Indicator
Long-term – Fund-based – Term Loan Simple
The Complexity Indicator refers to the ease with which the returns associated with the rated instrument could be estimated.
It does not indicate the risk related to the timely payments on the instrument, which is rather indicated by the instrument's
credit rating. It also does not indicate the complexity associated with analysing an entity's financial, business, industry risks or
[Link] .in Page | 3
complexity related to the structural, transactional or legal aspects. Details on the complexity levels of the instruments are
available on ICRA’s website: Click Here
[Link] .in Page | 4
Annexure I: Instrument details
Coupon Amount Rated Current Rating and
ISIN Instrument Name Date of Issuance Maturity
Rate (Rs. crore) Outlook
NA Term Loan FY2024 8.8% FY2039 2700.00 [ICRA] A- (Stable)
Source: Company
Please click here to view details of lender-wise facilities rated by ICRA
Annexure II: List of entities considered for consolidated analysis – NA
[Link] .in Page | 5
ANALYST CONTACTS
Ashish Modani Anupama Reddy
+91 20 6606 9912 +91 40 6939 6427
[Link]@[Link] [Link]@[Link]
Sweta Shroff Yash Garg
+91 124 4545 307 +91 124 4545 337
[Link]@[Link] [Link]@[Link]
RELATIONSHIP CONTACT
L. Shivakumar
+91 22 6114 3406
shivakumar@[Link]
MEDIA AND PUBLIC RELATIONS CONTACT
Ms. Naznin Prodhani
Tel: +91 124 4545 860
communications@[Link]
HELPLINE FOR BUSINESS QUERIES
+91-9354738909 (open Monday to Friday, from 9:30 am to 6 pm)
info@[Link]
ABOUT ICRA LIMITED
ICRA Limited was set up in 1991 by leading financial/investment institutions, commercial banks and financial services
companies as an independent and professional investment Information and Credit Rating Agency.
Today, ICRA and its subsidiaries together form the ICRA Group of Companies (Group ICRA). ICRA is a Public Limited Company,
with its shares listed on the Bombay Stock Exchange and the National Stock Exchange. The international Credit Rating Agency
Moody’s Investors Service is ICRA’s largest shareholder.
For more information, visit [Link]
[Link] .in Page | 6
ICRA Limited
Registered Office
B-710, Statesman House, 148 Barakhamba Road, New Delhi-110001
Tel: +91 11 23357940-45
Branches
© Copyright, 2025 ICRA Limited. All Rights Reserved.
Contents may be used freely with due acknowledgement to ICRA.
ICRA ratings should not be treated as recommendation to buy, sell or hold the rated debt instruments. ICRA ratings are subject to a process of surveillance,
which may lead to revision in ratings. An ICRA rating is a symbolic indicator of ICRA’s current opinion on the relative capability of the issuer concerned to
timely service debts and obligations, with reference to the instrument rated. Please visit our website [Link] or contact any ICRA office for the latest
information on ICRA ratings outstanding. All information contained herein has been obtained by ICRA from sources believed by it to be accurate and reliable,
including the rated issuer. ICRA however has not conducted any audit of the rated issuer or of the information provided by it. While reasonable care has been
taken to ensure that the information herein is true, such information is provided ‘as is’ without any warranty of any kind, and ICRA in particular, makes no
representation or warranty, express or implied, as to the accuracy, timeliness or completeness of any such information. Also, ICRA or any of its group companies
may have provided services other than rating to the issuer rated. All information contained herein must be construed solely as statements of opinion, and ICRA
shall not be liable for any losses incurred by users from any use of this publication or its contents.
