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Hindustan Times
a day ago
- Business
- Hindustan Times
Apple India leases 2.7 lakh sq ft office space from Embassy Group in Bengaluru for 10 years at over ₹1,000 crore
Apple India Pvt Ltd has leased around 2.7 lakh sq ft of office space in real estate developer Embassy Group's project Embassy Zenith in Bengaluru for a 10-year term, with a total rental outlay of over ₹1,000 crore, setting a benchmark with lease rates touching almost ₹235 per sq ft per month, documents accessed by Propstack showed. Apple India Pvt Ltd has leased about 2.7 lakh sq ft of office space in real estate developer Embassy Group's project Embassy Zenith in Bengaluru for a 10-year term (Representational photo)(Pixabay) The tech giant will pay a total of ₹1,010 crore over 10 years, inclusive of rent, parking, and common area maintenance charges, the documents showed. The iPhones and IPads maker has leased nine floors, from the 5th to the 13th, with a carpet area of 1.96 lakh sq ft and a chargeable area of 2.68 lakh sq ft in Bengaluru's Sankey Road from Mac Charles (India) Ltd. Apple will pay ₹6.31 crore per month, translating to ₹235 per sq ft. Apple will receive a total of 362 car parking spaces as part of the deal, the documents showed. The company has deposited ₹31.57 crore as security, and the agreement includes an annual rent escalation of 4.5%, the documents showed. The company also has the option to lease additional space measuring 1.21 lakh sq ft across the ground to fourth floors, the documents showed. An email query has been sent to Apple India Private Limited and Embassy Group. The story will be updated if a response is received. Apple Inc has leased office space in a commercial project on a 2.3-acre land parcel, previously occupied by the Le Meridien hotel, overlooking Bangalore Golf Club and Cubbon Park. Embassy Group, which acquired the property years ago, is developing the tower comprising two basements, a ground floor, and 13 upper floors, the documents showed. 'Apple's 10-year commitment for prime office space in Bengaluru highlights their immense confidence in the Indian market. This investment in talent and operations runs parallel to their manufacturing scale-up for iPhones with companies like Foxconn. Together, these moves solidify India's crucial position at the heart of Apple's global supply chain and innovation efforts,' said Raja Seetharaman, co-founder Propstack. Other Apple India transactions in Bengaluru In May 2025, Apple India leased 7997.8 sq ft of retail space in North Bengaluru's upscale Phoenix Mall of Asia for an annual rent of ₹2.09 crore for 10 years, according to documents accessed by Propstack. The lease has a tenure of 10 years with a 15% escalation in both rent and security deposit every three years. Apple has paid a security deposit of ₹1.046 crore, the document showed. Also Read: Bengaluru: Here's how Foxconn's iPhone plant is reshaping Devanahalli's real estate market The lease also included a revenue-sharing component, almost 2% of revenue for the first 36 months and 2.5% thereafter. However, revenue share payments are capped at twice the value of the applicable yearly minimum guaranteed rent, the document showed. According to media reports, in 2023 Apple leased several floors of Prestige Estates Projects' commercial building, Prestige Minsk Square, in Bengaluru's central business district on Cubbon Road, for 10 years at a starting monthly rent of ₹2.44 crore. Foxconn facility in Bengaluru Real estate experts note that Foxconn's facility in Bengaluru is already fueling demand for residential and commercial properties in Devanahalli, driven by rising employment opportunities and infrastructure development. Taiwanese electronics giant Foxconn's Bengaluru factory, its second-largest manufacturing unit, has commenced operation with production of iPhone 17 recently at a small scale, sources aware of the development told PTI. Also Read: Office leasing across top 8 cities clocks 48.9 mn sq ft in H1 2025; Bengaluru sees record absorption at 18.2 mn sq ft Foxconn is the largest manufacturer of iPhones, and the second-biggest facility outside China in Devanahalli near Bengaluru, being set up at an investment of $2.8 billion (about ₹25,000 crore). "Foxconn Bengaluru unit has commenced operation with the production of iPhone 17. This is in addition to the production of iPhone 17 at its Chennai unit," a source aware of the development told PTI.
Mint
12-05-2025
- Business
- Mint
TCS leases 630,000 sq.ft. in Chennai amid slow IT office space take-up
Bengaluru: Tata Consultancy Services Ltd (TCS) has leased around 630,000 of office space in Chennai's Ozone Techno Park at a monthly rent of ₹ 2.8 crore. India's largest information technology (IT) services company leased the space in Chennai's Navalur suburb from Platinum Holdings Pvt. Ltd for 10 years after paying a deposit of ₹ 25.5 crore, according to documents accessed by real estate data analytics firm Propstack. As per the lease terms, the rent will increase by 12% after every three years. A TCS spokesperson didn't respond to an email query on the transaction. Office space leasing by domestic IT services companies has been slow across major Indian cities, reflecting a slowdown in the sector amid global economic and geopolitical uncertainties. Raja Seetharaman, co-founder, Propstack, however, said domestic IT services companies were continuing to expand. 'Despite broader economic factors and technological shifts impacting the IT sector, companies continue to commit to significant office spaces, reflecting diverse operational strategies including work from office and regional preferences,' said Seetharaman. 'This transaction also indicates that while GCCs (global capability centres) continue to be the flavour, IT companies in India continue to expand.' Last year, TCS leased over 1 million of office space in Hyderabad for 15 years, as per Propstack. While the registration took place in April this year, the lease had commenced on 1 October. However, leasing by other IT firms has been slow, with Cognizant Technology Solutions Corp. and Wipro Ltd even giving up real estate to rationalise costs. Earlier this year, Cognizant sold about 600,000 of office property on Chennai's Old Mahabalipuram Road to Bengaluru developer Bagmane Constructions for ₹ 612 crore.
