Apple renews lease for 52,000 sq ft of office space in Bengaluru @Rs 1.42 crore per month

Bengaluru

Apple has renewed its lease for 52,000 square feet of flexible office space with Hong Kong-headquartered co-working workspace provider Executive Centre for three years, documents accessed by Propstack showed.

The iPhone maker has rented out space in Safina Towers in Bengaluru. The earlier lease agreement was executed in October 2019, the documents showed.

Apple  will pay Rs 1.42 crore per month by way of compensation for use and occupation of the premises. It has also paid a licence fee of 71.19 lakh and a security deposit of Rs 4.58 crore.

The lease rental will escalate by 5 percent at the end of 16 months, and thereafter every 12 months.

The space comes with 30 car parks, at the rate of Rs 9,923 per parking slot per month, plus taxes. This shall be subject to an escalation of 5 percent from November 1, 2022, and thereafter every 12 months, per the document.

"This transaction indicates Apple’s increasing presence in India. The need for office space, despite work for home policies post Covid, was inevitable due to the shift of manufacturing activities to India. It is safe to predict that Apple will continue to increase its footprint in India," said Raja Seetharaman, Co-Founder, Propstack.

Neither Apple nor Executive Centre responded to emailed queries in this regard.

Many corporates are prefering to use flexible spaces due to the availability of shorter leases and a cautious approach by companies with respect to capital expenditure on offices

Apple India Private Limited, renewed its lease for 15,925 sq ft of commercial space spread across three floors from Agni Commex LLP for a period of almost five years in Mumbai in September 2021.