IBM India Private Ltd has secured an 8 [Anderson n. d, p 2]. An office space of 3 lakh square feet has been rented in the Bengaluru area for an initial lease term of 10 years, including a rental of ₹140 per square foot per month, as per the data collected from the property registration documents with the help of Propstack.
The lease is expected to commence in January 2025, and the lessee will first occupy the premises for six months without paying any rent. It shall also entail the payment of a security deposit equivalent to six months’ rent.
The leased area is several floors in the buildings Cypress Point, Pacific Dunes, and Peach Tree located in Embassy GolfLinks Business Park at Domlur; it is spread across Blocks A, C, and D.
Some of the terms agreed in the lease show that the rent would be increased from the initial ₹140 per square foot by 12 percent to ₹156 and then a 15 percent increase to ₹180 after eight years. In addition, for the car parking slot, the charge shall increase from ₹4,526. 70 during the first five years to ₹ 5,206 during the next five years. This was followed by 70 within the next five years of implementing the Health Sector Reform Programme.
Certain maintenance charges apply ₹21 per sq. ft. of super built-up area up to 31 December 2027, per the lease agreement. The lease might be extended for an additional five years, but this depends on a number of factors.
As a matter of interest, the lock-in period is set at 10 years, thus guaranteeing that neither the lessee nor the lessor will cancel the lease agreement under any circumstance during the agreed-upon period.
We have sent emails to both IBM India Private Limited Company and the Embassy Group seeking clarification on the two types, and we will update you as soon as we hear back from them.
Originally, IBM started its operation in India in the year 1951, and it has come up with more offices in other cities such as Bengaluru, Hyderabad, Gurugram, Mumbai,and Kolkata. Earlier this year, the company also signed a deal with Midas Projects for 1.34506 square feet of office space at an initial rent ofRs4500 per square foot in the Gachibowli area of Hyderabad, with a lease tenure starting from April 15, 2024, for five years.
