Volkswagen Group Technology Solutions India Pvt Ltd, a tech arm of the German auto giant Volkswagen Group, has leased around 1.23 lakh sq ft of office space across three floors at the Embassy Tech Zone in Phase-II of the Rajiv Gandhi Infotech Park in Hinjawadi, Pune, according to documents accessed by FloorTap.com. The company is paying a starting rent of Rs 54 per sq ft per month, with total starting monthly rent of Rs 66,60,856.
The company already has a facility at the office space, on the 9th floor of a building, while the new lease is on the 5th, 6th, and 7th floors of another building in the Embassy Tech Zone campus.
According to local market sources, the rent is standard for Grade-A office spaces in the area, which ranges from Rs 50-60 per sq ft per month. Hinjawadi is home to a large number of tech players, as well as an increasing number of global capability centres belonging to a wide variety of sectors, such as automobile, medical equipment, financial services, among others.
The lease period has been set at 60 months, with a lock-in period of 36 months. While the lease started from May 20, the tenants have been granted a rent-free fit-out period till September 19. The rent payment period starts from September 20. A 15 percent rent escalation has been built in after 36 months from the commencement of the rent period.
The facility, owned by Embassy Office Parks REIT, also carries maintenance charges of Rs 15.18 per sq ft per month, and parking charges of Rs 2,500 per month for 123 parking spots each. The lessee is also charging a security deposit of Rs 3.99 crore from Volkswagen Group Technology Solutions.
Most of Volkswagen Group's India operations, housed under its Indian subsidiary Skoda Auto Volkswagen India Private Ltd, are located in Pune, with its main manufacturing facility located in the industrial area of Chakan, on the northern outskirts of Pune. It also has a manufacturing facility in Shendra, near Aurangabad in Maharashtra. The tech arm has other facilities in Gurugram and Bengaluru.
The deal reflects largely strong leasing activity in India for the Apr-Jun quarter, with Colliers reporting new leasing in Grade-A office spaces at 15.8 million sq ft, 8 percent higher than the same period last year. New leasing in Pune, however, dropped by 41 percent over the same period.
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